Ge Aerospace · NYSE:GE
Ge Aerospace — Q1 2024 Earnings Presentation
26 slides from Ge Aerospace's earnings presentation, Apr 23, 2024
Slide 1: GE Aerospace first quarter 2024 performance
GE Aerospace first quarter 2024 performance Financial results & company highlights April 23, 2024
Slide 2: Caution concerning forward-looking statements and non-GAAP measures
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: GE begins again as three industry leaders
GE begins again as three industry leaders Launches mark successful completion of GE’s multi-year transformation Together, we're living our purpose We electrify and decarbonize the We invent the future of flight, to create a world where planet, and together, we have the lift people up and healthcare
Slide 4: GE consolidated: 1Q'24 snapshot
GE consolidated: 1Q'24 snapshot Including GE Aerospace and GE Vernova Results Y/Y Orders $20.1B +14%-a) Adjusted revenue* $15.2B +10%-a) $0.55, Adjusted EPS* $0.82 Favorable y/y $0.7B, Free cash flow* $0.9B Favorable y/y Strong 1Q'24, largely driven by significant profit and FCF* growth at GE Aerosp
Slide 5: GE Aerospace: key messages
GE Aerospace: key messages Full focus on aerospace & defense 1Q'24 performance Global leader in attractive Solid start to the year with propulsion, services, and systems sectors double-digit revenue, profit, and FCF* growth Industry's largest and growing Commercial Engines & Services profit improvem
Slide 6: Delivering our strategic priorities, with safety and quality first
GE Aerospace: delivering our strategic priorities, with safety and quality first GE Aerospace and Safran teams convened at GE Engine Services Malaysia to address 2024 LEAP engine test capacity, closing nearly all the 100 engine expected test gap. Implementing 14 actions, they reduced average test ce
Slide 7: GE Aerospace: 1Q'24 performance
GE Aerospace: 1Q'24 performance On a standalone basis-a) Adjusted Operating Free cash revenue* profit* flow* $8.1B $1.5B $1.7B +15% y/y +24% y/y +Favorable y/y Operating profit margin* FCF* conversion-b) 19.1% ~160% 1Q'24 revenue, profit, FCF* all up double-digits * Non-GAAP Financial Measure (a – A
Slide 8: Commercial Engines & Services (CES): environment
Commercial Engines & Services (CES): environment GE Aerospace/CFM departures Key wins 1Q'24 CES orders Total departures ’24 outlook: +HSD Total orders +34% … improved vs. prior outlook, 300 LEAP for 737MAX … positive customer dynamics with strong given 1Q strength and improving freight orderbooks at
Slide 9: Commercial Engines & Services (CES): 1Q'24 performance
Commercial Engines & Services (CES): 1Q'24 performance On a standalone basis-a) Results Dynamics Revenue-b) ▪ Orders: $8.3B, +34% +16% y/y ▪ Revenue-b): $6.1B, +16% – Services: +12% … spare parts exceeding internal shop visits growth of +3% – Equipment: +31% … pricing and widebody strength driving g
Slide 10: Defense & Propulsion Technologies (DPT): 1Q'24 performance
Defense & Propulsion Technologies (DPT): 1Q'24 performance On a standalone basis-a) Results Dynamics Revenue-b) ▪ Orders: $3.0B, +34% … growth in Defense & Systems +18% y/y (D&S) and Propulsion & Additive Technologies (P&AT) – Defense book to bill: 1.1x, strong orders ▪ Revenue-b): $2.3B, +18% – D&S
Slide 11: GE Aerospace: FY'24 total company guidance as of April 23, 2024
GE Aerospace: FY'24 total company guidance as of April 23, 2024 On a standalone basis-a) 2024 guide 2024 guide 2023 (January) (April) Adjusted revenue growth* +22% LDD+ LDD+ Adjusted revenue* $32.0B Operating profit* $5.6B $6.0B-$6.5B $6.2B-$6.6B Op profit margin* 17.4% Adjusted EPS* $2.95 NA $3.80-
Slide 12: 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 13: Q&A
- Q&A 13
Slide 14: Appendix
Appendix 15 2024 business guidance 16 2024 guidance items 17 Renewable Energy segment results 18 Power segment results 19 Orders and Revenue 20 FCF 14
Slide 15: GE Aerospace: FY'24 guidance as of April 23, 2024
GE Aerospace: FY'24 guidance as of April 23, 2024 On a standalone basis-a); $ in billions Adjusted revenue* Operating profit* Mid-high Mid-high 23.9 teens teens COMMERCIAL ENGINES & 5.6 6.0-6.3 6.1-6.4 SERVICES (CES) 9.0 MSD-HSD MSD-HSD DEFENSE & PROPULSION 0.9 1.0-1.3 1.0-1.3 TECHNOLOGIES (DPT) C O
Slide 16: Other 2024 guidance items
Other 2024 guidance items Interest expense Slightly below ~$(1)B Adjusted tax rate* Low-twenties Separation costs Achieved ~$2.5B pre-spin, expecting ~$0.4B post-spin over next couple of yrs Restructuring Expecting ~$0.2B to complete post-spin actions next couple of yrs, majority in '24 Non-op. bene
Slide 17: GE Vernova: Renewable Energy
GE Vernova-a): Renewable Energy ($ in billions) 1Q'24 RESULTS 1Q'24 DYNAMICS Revenue GE Vernova (NYSE: GEV) following its spin-off from GE on April 2, 2024 is now a standalone company that will release its financial results in connection with their earnings call on April 25, 2024. Rev. Growthorg* 5%
Slide 18: GE Vernova: Power
GE Vernova-a): Power ($ in billions) 1Q'24 RESULTS 1Q'24 DYNAMICS Revenue GE Vernova (NYSE: GEV) following its spin-off from GE on April 2, 2024 is now a standalone company that will release its financial results in connection with their earnings call on April 25, 2024. Rev. Growthorg* 11% (2)% 9% 1
Slide 19: Orders and Revenue - supplemental information
Orders and Revenue - supplemental information GE Aerospace, on a standalone basis-a) ($ in billions) ORDERS Services Equipment Total 1Q’24 y/y 1Q’24 y/y 1Q’24 y/y Commercial Engines & $5.3 18% $3.0 78% $8.3 34% Services Defense & Propulsion $1.3 3% $1.7 72% $3.0 34% Technologies GE Aerospace $6.5 14
Slide 20: Free cash flow performance
Free cash flow* performance GE Aerospace, on a standalone basis-a) ($ in billions) 1Q'24 DYNAMICS 1Q'24 y/y Net earnings (loss)-b) 1.7 (5.0) ▪ FCF* primarily driven by strong adjusted earnings Depreciation & amortization 0.3 — ▪ Working capital a source despite double-digit revenue Operating working
Slide 21: Non-GAAP reconciliations
Non-GAAP reconciliations 22 Adjusted revenues 23 Operating profit & operating profit margin 24 Adjusted earnings and earnings per share (EPS) 25 Free cash flows (FCF) 21
Slide 22: Adjusted revenues
Adjusted revenues ADJUSTED REVENUES (NON-GAAP) (In billions) Q1'24 Q1'23 V% Total revenues (GAAP) $ 16.1 $ 14.5 11 % Less: Insurance revenues 0.9 0.8 Adjusted revenues (Non-GAAP) $ 15.2 $ 13.7 11 % Less: Renewable Energy revenues 3.0 2.8 Less: Power revenues 4.1 3.8 Less: Separation adjustments(a) —
Slide 23: Operating profit & operating profit margin
Operating profit & operating profit margin OPERATING PROFIT AND OPERATING PROFIT MARGIN (NON-GAAP) (In billions) Q1'24 Q1'23 V% Total revenues (GAAP) $ 16.1 $ 14.5 11 % Less: Insurance revenues 0.9 0.8 Adjusted revenues (Non-GAAP) $ 15.2 $ 13.7 11 % Total costs and expenses (GAAP) $ 15.3 $ 14.1 9 %
Slide 24: Adjusted earnings (loss) and earnings (loss) per share
Adjusted earnings (loss) and earnings (loss) per share ADJUSTED EARNINGS (LOSS) (NON-GAAP) Q1'24 Q1'23 (In billions; per-share amounts in dollars) Earnings EPS Earnings EPS Earnings (loss) from continuing operations (GAAP) $ 1.5 $ 1.38 $ 6.1 $ 5.56 Insurance earnings (loss) (pre-tax) 0.2 0.18 0.1 0.
Slide 25: Free cash flows (FCF)
Free cash flows (FCF) FREE CASH FLOWS (FCF) (NON-GAAP) Q1'24 Q1'23 V$ (In billions) CFOA (GAAP) $ 1.0 $ 0.2 $ 0.9 Less: Insurance CFOA 0.1 — CFOA excluding Insurance (Non-GAAP) $ 0.9 $ 0.1 $ 0.8 Add: gross additions to property, plant and equipment and internal-use software (0.4) (0.3) Less: separat
Slide 26: Upcoming calendar
Upcoming calendar Annual Shareholders Meeting May 7, 2024 2Q'24 Earnings July 23, 2024 3Q'24 Earnings October 22, 2024 26