GE(GE) - 2025 Q1 - Quarterly Results

Financial Performance - Total orders reached $12.3 billion, an increase of 12$9.9 billion, up 11% from the previous year; adjusted revenue was $9.0 billion, also up 11$2.2 billion, reflecting a 13% increase; operating profit was $2.1 billion, up 38$1.49, a significant increase of 60% compared to the previous year[4] - Adjusted net income for Q1 2025 was $1,601 million, with an EPS of$1.49, compared to $1,026 million and an EPS of$0.93 in Q1 2024, representing a 56% increase in adjusted net income[22] - The company reported a net income from continuing operations of $1,967 million for Q1 2025, compared to$1,741 million in Q1 2024, reflecting a 13% year-over-year increase[22] - The adjusted EPS for Q1 2025 was $1.49, reflecting a significant improvement compared to$0.93 in Q1 2024[22] Cash Flow and Investments - Cash from Operating Activities (GAAP) was $1.5 billion, down 5$1.4 billion, down 14%[4] - Free cash flow (FCF) for Q1 2025 was $1,441 million, down 14$1,669 million in Q1 2024, primarily due to increased separation cash expenditures[25] - Cash flows from operating activities (CFOA) for Q1 2025 were $1,543 million, a decrease of 5$1,629 million in Q1 2024[25] - The company emphasizes the importance of free cash flow as a performance metric for its annual executive incentive plan and performance stock units granted in 2025[25] - The company plans to invest nearly 1 billion in U.S. manufacturing and technology, aiming to hire approximately 5,000 workers[5] Revenue Projections - Commercial Engines & Services (CES) revenue is expected to grow in the mid-teens, with operating profit projected at 7.6-7.9 billion[10] - Defense & Propulsion Technologies (DPT) revenue is anticipated to grow in the mid- to high-single-digit range, with operating profit expected to be between 1.1 billion and $1.3 billion[10] - The full-year 2025 guidance includes adjusted EPS of$5.10 to $5.45 and free cash flow of$6.3 billion to $6.8 billion[8] Contracts and Market Presence - The company has secured a contract from the U.S. Air Force valued up to$5 billion for F110-GE-129 engines[5] - The company has a global installed base of approximately 45,000 commercial and 25,000 military aircraft engines, highlighting its market presence[37] Uncertainties and Costs - The company anticipates significant uncertainty in providing guidance for 2025 operating profit and adjusted EPS due to potential gains or losses from acquisitions and restructuring expenses[26][27] - The company incurred separation costs of $51 million in Q1 2025, down from$259 million in Q1 2024, indicating a reduction in restructuring-related expenditures[22] - The tax effect on insurance net income for Q1 2025 was $24 million, compared to a tax loss of$43 million in Q1 2024, indicating improved tax efficiency[22]