Ge Aerospace · NYSE:GE
Ge Aerospace — Q1 2025 Earnings Presentation
22 slides from Ge Aerospace's earnings presentation, Apr 22, 2025
Slide 1: GE Aerospace first quarter 2025 performance
GE Aerospace first quarter 2025 performance Financial Results & Company Highlights April 22, 2025
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: we invent the future of flight
OUR PURPOSE We invent the future of flight, ~3.4B Passengers flew with GE Aerospace lift people up and bring them technology under wing in 2024 home safely ~950K People flying at any given time on GE Aerospace-powered aircraft 3 out of 4 Commercial flights powered by our engines Figures include equi
Slide 4: 1Q'25: strong start to the year
1Q'25: strong start to the year GE Aerospace 1Q orders and adjusted revenue* up double-digits and adjusted EPS* +60% +12% Orders growth … strong start, robust backlog and actions underway support '25 guide +11% Adjusted revenue growth* Commercial Engines & Services (CES) Services orders +31% and rev
Slide 5: Taking action to manage dynamic environment
Taking action to manage dynamic environment Actions underway ... .... … services backlog remains robust Partially reducing tariff impact by ... Commercial services orders ($ billions, y/y) +40% +31% ▪ Optimizing operations +36% +24% +18% ▪ Leveraging existing programs and strategies … offsetting rem
Slide 6: Poised to accelerate aftermarket and OE output
poised to accelerate aftermarket and OE output .... Priority suppliers material input Actions to drive further improvement +8% q/q ▪ CES services revenue +17% while total engine units (6)% ▪ Driving sustainable improvements with suppliers: ‒ Increased volume needs to priority suppliers … meeting >95
Slide 7: Industry leading commercial and defense platforms
Industry leading commercial and defense platforms TBU TBU Secured engine commitments with ANA for LEAP and GEnx engines to power Completed the Detailed Design Review of XA102 adaptive cycle engine, 13 A321neo, up to 22 737MAX, and 18 787-9 as part of its fleet upgrade. a key milestone in the U.S. Ai
Slide 8: Significant 1Q'25 top-line and adjusted EPS growth
Significant 1Q'25 top-line and adjusted EPS* growth Adjusted Operating Adjusted Free cash Orders revenue* profit* EPS* flow* $12.3B $9.0B $2.1B $1.49 $1.4B +12% y/y +11% y/y +38% y/y +60% y/y (14)% y/y Op profit margin* 23.8% Operating profit* +$0.6B y/y and adjusted EPS* +$0.55 y/y * Non-GAAP Finan
Slide 9: Commercial Engines & Services (CES): 1Q'25 performance
Commercial Engines & Services (CES): 1Q'25 performance Revenue Operating Profit +14% y/y +35% y/y Op profit 23.3% 28.2% 27.5% +420bps y/y margin ▪ Services: +17% … from spare parts revenue growth ▪ Op profit: +35% ... Op profit margin up 420bps >20% and internal shop visit revenue +11% ▪ Equipment:
Slide 10: Defense & Propulsion Technologies (DPT): 1Q'25 performance
Defense & Propulsion Technologies (DPT): 1Q'25 performance Revenue Operating Profit +1% y/y +16% y/y Op profit 11.1% 9.6% 12.7% +160bps y/y margin ▪ Defense & Systems: flat … Defense units +5% and ▪ Op profit: +16% … Op profit margin +160bps price offset by lower services – Defense book-to-bill 1.4x
Slide 11: Maintaining FY'25 guidance
Maintaining FY'25 guidance: strong start, robust backlog and actions underway 2024 2025 Guide 2025 assumptions Adjusted revenue growth* '+10% Included: LDD Adjusted revenue* $35.1B ▪ Impact of announced tariffs net of actions ▪ '25 departures-b) +LSD (previously +MSD) Operating profit* $7.3B ▪ Delay
Slide 12: GE Aerospace: set to soar
GE Aerospace: set to soar Customer Preferred Highest Operational Most Extensive Breakthrough Platforms Reliability Installed Base Innovation Best performing services Robust technologies Unrivaled customer Leading engineering GE Aerospace’s and products underwing, and proven products ... service and
Slide 13: Q&A
~ Q&A 13
Slide 14: Appendix
Appendix 15 2025 segment guidance 16 2025 additional items 17 Orders and revenue 18 1Q adjusted EPS bridge 14
Slide 15: Maintaining FY'25 guidance across the board
Maintaining FY'25 guidance across the board Guidance as of April 22, 2025 ($ in billions) Adjusted revenue* Operating profit* +Mid-teens Commercial Engines & +LDD- +LDD- $7.6 - $7.9 Services mid-teens mid-teens Services (CES) Equipment High-teens Defense & Propulsion +MSD - HSD Technologies (DPT) $1
Slide 16: Additional items as of April 22, 2025
Additional items as of April 22, 2025 1Q'25 1Q'24 FY'25 dynamics Share buy-back $1.9B $0.1B ~$7B in FY’25 Diluted share count 1,078M 1,103M ~1,070M in FY'25 Dividend paid $0.3B $0.1B Dividend +30% y/y in FY'25 Cash balance $12.4B $15.0B-a) NA Total borrowings $19.6B $20.2B No planned debt repayment,
Slide 17: Orders and revenue - supplemental information
Orders and revenue - supplemental information ($ in billions) Services Equipment Total ORDERS 1Q'25 y/y 1Q'25 y/y 1Q'25 y/y Commercial Engines & Services $6.9 31% $2.7 (13)% $9.6 15% Defense & Propulsion Technologies $1.5 14% $1.5 (10)% $3.0 0% GE Aerospace $8.4 28% $3.9 (12)% $12.3 12% Services Equ
Slide 18: 1Q'25 adjusted earnings per share bridge
1Q'25 adjusted earnings per share* bridge • Share count down • Adjusted ETR* 25M 17.6% vs 20.7% • Slightly lower interest expense • Improvement across segments, primarily CES * Non-GAAP Financial Measure Operating profit and interest impacts are tax effected 18 Charts are not to scale
Slide 19: Non-GAAP reconciliations
Non-GAAP reconciliations 20 First quarter adjusted revenue, adjusted costs, adjusted other income, operating profit and adjusted net income 21 First quarter free cash flow 19
Slide 20: First quarter adjusted revenue, costs, other income, operating profit and adjusted net income
First quarter adjusted revenue*, costs*, other income*, operating profit* and adjusted net income* Less: Less: Less: Less: Insurance Separation, 1Q'25 Insurance Separation, 1Q'24 and US tax restructuring Less: Other-b) Adjusted and US tax restructuring Less: Other-b) Adjusted (Dollars in millions) 1
Slide 21: First quarter free cash flow
First quarter free cash flow* (Dollars in millions) 1Q'25 1Q'24 V% Net income (loss) (GAAP) -a) $ 1,962 $ 1,744 13 % Depreciation & amortization -b) 299 290 Operating working capital 103 254 Current receivables (326) 261 Inventories, including deferred inventory costs (724) (504) Current contract as
Slide 22: Upcoming calendar
Upcoming calendar Investor Day at Paris Air Show June 17, 2025 2Q'25 Earnings July 22, 2025 3Q'25 Earnings October 21, 2025 22