Ge Aerospace · NYSE:GE
Ge Aerospace — Q3 2024 Earnings Presentation
22 slides from Ge Aerospace's earnings presentation, Oct 22, 2024
Slide 1: GE Aerospace third quarter 2024 performance
GE Aerospace third quarter 2024 performance Financial results & company highlights October 22, 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: GE Aerospace: 3Q'24 highlights
GE Aerospace: 3Q'24 highlights GE Aerospace Results Delivered strong orders, earnings and substantial cash … raising FY'24 earnings and cash guidance Orders growth +28% Adjusted revenue growth* +6% Commercial Engines & Services (CES) Orders and profit up double-digits from services, OE output progre
Slide 5: Enabling >20% sequential growth in engine deliveries
enabling >20% sequential growth in engine deliveries Total engine units Dynamics • 3Q q/q: Commercial +25% including LEAP +23%, Defense +8% +22% q/q • Spare parts growth q/q supporting 3rd party MRO partners, internal shop visits lower q/q • Subset of priority sites constraining delivery grew materi
Slide 6: Robust demand for services & equipment: 3Q orders +28%
Robust demand for services & equipment: 3Q orders +28% EVA Air selected GE Aerospace's GEnx engine, known for high performance and efficiency, to The Polish Ministry of National Defense finalized an agreement for more than 200 T700 engines to power four new Boeing 787s. support the anticipated acqui
Slide 7: GE Aerospace: 3Q'24 performance
GE Aerospace: 3Q'24 performance Adjusted Operating Free cash Orders revenue* profit* Adjusted EPS* flow* $12.6B $8.9B $1.8B $1.15 $1.8B +28% y/y +6% y/y +14% y/y +25% y/y +5% y/y Op profit margin* 20.3% Year-to-date +26% y/y +8% y/y $5.3B, +25% y/y $3.28, +43% y/y $4.6B, +31% y/y Significant adjuste
Slide 8: Commercial Engines & Services (CES): 3Q'24 performance
Commercial Engines & Services (CES): 3Q'24 performance Results Dynamics Revenue ▪ Orders: $9.8B, +29% … services +24% and equipment +39% +8% y/y ▪ Revenue: $7.0B, +8% – Services: +10% … spare parts sales, workscope and price offset internal shop visits (1)% Operating profit – Equipment: +5% … custom
Slide 9: Defense & Propulsion Technologies (DPT): 3Q'24 performance
Defense & Propulsion Technologies (DPT): 3Q'24 performance Results Dynamics Revenue ▪ Orders: $3.0B, +19% … primarily Defense and Systems +2% y/y – Defense book to bill: 3Q 1.6x; YTD 1.2x ▪ Revenue: $2.2B, +2% – Defense & Systems: (2)% … lower units and engine mix more than offset price Operating pr
Slide 10: GE Aerospace: FY'24 total company guidance as of October 22, 2024
GE Aerospace: FY'24 total company guidance as of October 22, 2024 2024 guide 2024 guide 2023 (July) (October) Adjusted revenue growth* +22% HSD HSD Adjusted revenue* $32.0B Operating profit* $5.6B $6.5B-$6.8B $6.7B-$6.9B Op profit margin* 17.4% Adjusted EPS* $2.95 $3.95-$4.20 $4.20-$4.35 Free cash f
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 services Robust technologies and Unrivaled customer Leading engineering GE Aerospace’s and products underwing, proven products ... service and
Slide 12: Q&A
- Q&A 12
Slide 13: Appendix
Appendix 14 3Q EPS bridge 15 2024 segment guidance 16 2024 additional items 17 Orders and revenue 13
Slide 14: 3Q'24 adjusted earnings per share bridge
3Q'24 adjusted earnings per share* bridge • Share count • Interest • '23 Pref share trending down expense ~flat redemption • Higher CES • Adjusted ETR* profit … from ~20% vs ~19% services • Lower Corporate cost Year-to-date $2.30 $0.75 $(0.00) $0.02 $0.22 $(0.00) $3.28 * Non-GAAP Financial Measure I
Slide 15: GE Aerospace: FY'24 guidance as of October 22, 2024
GE Aerospace: FY'24 guidance as of October 22, 2024 ($ in billions) Adjusted revenue* Operating profit* LDD-mid- LDD-mid- 23.9 teens teens COMMERCIAL ENGINES & 5.6 6.3-6.5 6.6-6.8 SERVICES (CES) 9.0 MSD-HSD MSD-HSD DEFENSE & PROPULSION Lower end of 0.9 1.0-1.3 TECHNOLOGIES (DPT) 1.0-1.3 C O R P O R
Slide 16: GE Aerospace: additional items as of October 22, 2024
GE Aerospace: additional items as of October 22, 2024 ($ in millions, unless otherwise noted) 3Q'24 3Q'24 Outlook YTD Share buy-back $1.3B-a) $3.7B-a) '24-'26 $15B share buy-back authorization Dividend paid $0.3B $0.7B Dividend ($0.28/share), ~30% of net income Interest expense-b) $(245) $(740) Slig
Slide 17: Orders and revenue - supplemental information
Orders and revenue - supplemental information ($ in billions) Services Equipment Total ORDERS 3Q'24 3Q'24 3Q'24 3Q'24 y/y YTD y/y 3Q'24 y/y YTD y/y 3Q'24 y/y YTD y/y Commercial Engines & $6.2 24% $17.8 26% $3.6 39% $9.4 50% $9.8 29% $27.3 33% Services Defense & Propulsion $1.6 $1.4 $4.1 12% $3.0 19%
Slide 18: Non-GAAP reconciliations
Non-GAAP reconciliations 19 QTD adjusted revenue, adjusted costs, adjusted other income, operating profit and adjusted earnings 20 YTD adjusted revenue, adjusted costs, adjusted other income, operating profit and adjusted earnings 21 Free cash flow 18
Slide 19: QTD adjusted revenue, adjusted costs, adjusted other income, operating profit and adjusted earnings
QTD adjusted revenue*, adjusted costs*, adjusted other income*, operating profit* and adjusted earnings* Less: Less: Less: Less: Insurance Separation, 3Q'24 Insurance Separation, 3Q'23 and US tax restructuring Less: Other-b) Adjusted and US tax restructuring Less: Other-b) Adjusted (Dollars in milli
Slide 20: YTD adjusted revenue, adjusted costs, adjusted other income, operating profit and adjusted earnings
YTD adjusted revenue*, adjusted costs*, adjusted other income*, operating profit* and adjusted earnings* Less: Less: Less: Less: Insurance Separation, 3Q'24 YTD Insurance Separation, 3Q'23 YTD 3Q'24 YTD and US tax restructuring Less: Other-b) Adjusted 3Q'23 YTD and US tax restructuring Less: Other-b
Slide 21: Free cash flows
Free cash flows* (Dollars in millions) 3Q'24 3Q'23 V% 3Q'24 YTD 3Q'23 YTD V% Net earnings (loss) (GAAP) -a) 1,695 307 F 4,760 8,272 (42) % Depreciation & amortization -b) 314 292 887 870 Operating working capital (580) 378 (572) 288 Current receivables (702) 229 (750) (112) Inventories, including de
Slide 22: Upcoming calendar
Upcoming calendar 4Q'24 Earnings January 23, 2025 1Q'25 Earnings April 22, 2025 2Q'25 Earnings July 22, 2025 3Q'25 Earnings October 21, 2025 22