GE Aerospace · NYSE:GE
GE Aerospace — Q2 2024 Earnings Presentation
21 slides from GE Aerospace's earnings presentation, Jul 23, 2024
Slide 1: GE Aerospace second quarter 2024 performance
GE Aerospace second quarter 2024 performance Financial results & company highlights July 23, 2024
Slide 2: Caution concerning forward-looking statements
Caution concerning forward-looking statements: This document contains "forward-looking statements" – that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. For details on the uncertainties that may cause our actual future results
Slide 3: Our purpose
OUR PURPOSE We invent the future of flight, lift people up and bring them home safely ~3B ~900K 3 out of 4 Passengers flew with GE People flying at any Commercial flights Aerospace technology given time on GE Aerospace- powered by under wing in 2023 powered aircraft our engines Figures include equip
Slide 4: Momentum continues at the Farnborough Airshow
Momentum continues at the Farnborough Airshow British Airways selected GE Aerospace's GEnx engine, known for high performance and The CFM LEAP-powered Airbus A321XLR was recently certified by the European Union Aviation efficiency, to power six new Boeing 787s - the first introduction of this engine
Slide 5: GE Aerospace: 2Q'24 highlights
GE Aerospace: 2Q’24 highlights Double-digit orders, profit, cash growth … accelerating actions to improve output for customers Commercial Engines & Services (CES) Services growth and overall >20% profit increase … industry’s largest and growing commercial propulsion fleet Defense & Propulsion Techno
Slide 6: Enabling problem solving inside & outside GE Aerospace
enabling problem solving inside & outside GE Aerospace Top 15 supplier sites material input Internal shop visit output +15% q/q >100% q/q +4% q/q • ~80% of material shortages attributable to 15 supplier sites • 2Q'24 LEAP shop TAT at 86 days … >15% reduction vs '23 • >550 total engineers and supply
Slide 7: GE Aerospace: 2Q'24 performance
GE Aerospace: 2Q'24 performance Adjusted Operating Free cash revenue* profit* Adjusted EPS* flow* $8.2B $1.9B $1.20 $1.1B +4% y/y +37% y/y +62% y/y +17% y/y Operating profit margin* 23.1% Solid 2Q and 1H performance … raising full year profit and free cash flow* guidance * Non-GAAP Financial Measure
Slide 8: Commercial Engines & Services (CES): 2Q'24 performance
Commercial Engines & Services (CES): 2Q'24 performance Results Dynamics Revenue ▪ Orders: $9.2B, +38% … services +36% and equipment +42% +7% y/y ▪ Revenue: $6.1B, +7% – Services: +14% … internal shop visits +14% outpacing spare parts Operating profit – Equipment: (11)% … units down double digits y/y
Slide 9: Defense & Propulsion Technologies (DPT): 2Q'24 performance
Defense & Propulsion Technologies (DPT): 2Q'24 performance Results Dynamics Revenue ▪ Orders: $2.3B, (25)% … lower Defense & Systems +1% y/y – Defense book to bill: 2Q 0.9x; YTD 1.0x ▪ Revenue: $2.4B, +1% – Defense & Systems: (6)% … lower units more than offsetting Services growth and pricing Operat
Slide 10: GE Aerospace: FY'24 total company guidance as of July 23, 2024
GE Aerospace: FY'24 total company guidance as of July 23, 2024 2024 guide 2024 guide 2023 (April) (July) Adjusted revenue growth* +22% LDD+ HSD Adjusted revenue* $32.0B Operating profit* $5.6B $6.2B-$6.6B $6.5B-$6.8B Op profit margin* 17.4% Adjusted EPS* $2.95 $3.80-$4.05 $3.95-$4.20 Free cash flow*
Slide 11: GE Aerospace: set to soar
GE Aerospace: set to soar Customer Highest Most preferred operational extensive Breakthrough platforms reliability installed base innovation Best performing products Robust technologies and Unrivaled customer Leading engineering GE Aerospace’s and services underwing, proven products ... service and
Slide 12: Q&A
- Q&A 12
Slide 13: Appendix
Appendix 14 2Q EPS bridge 15 2024 business guidance 16 2024 additional items 17 Orders and Revenue 18 FCF 13
Slide 14: 2Q'24 Adjusted Earnings Per Share Bridge
2Q’24 Adjusted Earnings Per Share Bridge • '23 Pref share • Adjusted ETR* redemption • Share count ~20% vs ~24% ~flat • Interest expense ~flat • Higher segment profit • Lower corporate cost *Non-GAAP Financial Measure Interest represents Interest and other financial charges excluding Insurance and U
Slide 15: GE Aerospace: FY'24 guidance as of July 23, 2024
GE Aerospace: FY'24 guidance as of July 23, 2024 ($ in billions) Adjusted revenue* Operating profit* Mid-high LDD-mid- 23.9 teens teens COMMERCIAL ENGINES & 5.6 6.1-6.4 6.3-6.5 SERVICES (CES) 9.0 MSD-HSD MSD-HSD DEFENSE & PROPULSION 0.9 1.0-1.3 1.0-1.3 TECHNOLOGIES (DPT) C O R P O R AT E & E L I M I
Slide 16: GE Aerospace: additional items as of July 23, 2024
GE Aerospace: additional items as of July 23, 2024 ($ in millions, unless otherwise noted) 2Q 1H Outlook 2024 2024 Share buy-back $2.3B-a) $2.4B-a) '24-'26 $15B share buy-back authorization Dividend paid $0.3B $0.4B Dividend ($0.28/share), ~30% of net income Interest expense-b) $(239) $(495) Slightl
Slide 17: Orders and Revenue - supplemental information
Orders and Revenue - supplemental information ($ in billions) Services Equipment Total ORDERS 2Q’24 2Q’24 2Q’24 2Q’24 y/y YTD y/y 2Q’24 y/y YTD y/y 2Q’24 y/y YTD y/y Commercial Engines & $6.3 36% $11.6 27% $2.8 42% $5.9 58% 38% $17.5 36% Services $9.2 Defense & Propulsion Technologies $1.4 11% $2.7
Slide 18: Free cash flow performance
Free cash flow* performance ($ in billions) 2Q'24 2Q'24 y/y YTD y/y 2Q'24 DYNAMICS Net earnings (loss)-a) 1.3 0.1 3.1 (4.9) ▪ FCF* primarily driven by strong adjusted earnings* Depreciation & amortization 0.3 — 0.6 — Operating working capital (0.2) (0.4) — 0.1 ▪ Working capital use ... Current recei
Slide 19: Non-GAAP reconciliations
Non-GAAP reconciliations 20 Adjusted earnings from operating profit 19
Slide 20: Adjusted earnings from operating profit
Adjusted earnings from operating profit ADJUSTED EARNINGS (NON-GAAP) (Dollars in millions) 2Q'24 2Q'23 V% 2Q24 YTD 2Q23 YTD V% CES Operating Profit 1,679 1,389 3,098 2,603 DPT Operating Profit 344 201 600 402 Adjusted Corporate & Other Operating Costs* (126) (205) (251) (373) Operating Profit (loss)
Slide 21: Upcoming calendar
Upcoming calendar 3Q'24 Earnings October 22, 2024 21