GE Aerospace Soars on Strong Earnings, Bullish 2025 Outlook

GE Aerospace (GE) shares surged nearly 10% on Thursday morning, leading the S&P 500 gainers, following the company's release of its fourth-quarter and full-year 2024 financial results. The manufacturer of airplane engines and other parts reported net income of $1.9 billion, or $1.75 per share, on $10.81 billion in revenue. Analysts had expected profit of $1.2 billion, or $1.10 per share, on $10.01 billion in revenue, according to estimates compiled by Visible Alpha.

GE Aerospace's revenue comes largely from two units, commercial engines and services and defense and propulsion. Revenue for the pair came in at $7.65 billion and $2.52 billion, respectively, while analysts had expected $7.39 billion and $2.53 billion. For the next fiscal year, GE Aerospace projects low-double-digit adjusted revenue growth after rising 10% to $35.1 billion in 2024, along with adjusted earnings per share (EPS) of $5.10 to $5.45, up from $4.60 this year.

GE Aerospace's strong performance can be attributed to several strategic initiatives, such as FLIGHT DECK, its proprietary lean operating model, and supply chain improvements. Using FLIGHT DECK, the company tackled supply chain constraints head-on, seeing a meaningful improvement from the first half to the second half of the year as material input improved 26% across priority supplier sites. This supported Commercial Engines & Service (CES) services revenue growing 17% and total engine units growing 18% in the second half.

GE Aerospace's focus on innovation, such as the Open Fan engine design project, also contributes to its long-term growth and competitive advantage. The project, led by GE Aerospace in collaboration with Boeing, NASA, and Oak Ridge National Laboratory, aims to study the performance of installed Open Fan engine design, supporting the aviation industry's efforts to develop more energy-efficient technology. This project, along with other achievements in 2024, such as becoming a standalone company, launching FLIGHT DECK, and receiving orders for over 4,600 commercial and defense engines, has contributed to the company's strong financial performance.

GE Aerospace's Chairman and CEO, H. Lawrence Culp, Jr., expressed confidence in the company's ability to accelerate output and deliver for its customers, guided by FLIGHT DECK. The company's strong fourth quarter and full year 2024 performance, along with its bullish 2025 outlook, suggests that GE Aerospace is well-positioned for continued growth and success in the aerospace industry.