GE Aerospace Soars on Strong Q4 Results, Eyes Upside in 2025

GE Aerospace (GE) shares surged in premarket trading on Thursday after the company reported fourth-quarter results that far exceeded analysts' expectations. 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 shares were up 7% shortly after the report's release. They had risen almost 40% entering Thursday since the separation from GE Vernova (GEV) last April. The strong performance can be attributed to several key factors, including robust demand for services and products, successful certifications and orders, effective supply chain management, integration of teams, and strategic collaborations.

GE Aerospace's Chairman and CEO, H. Lawrence Culp, Jr., expressed confidence in the company's ability to deliver another year of substantial adjusted revenue*, adjusted EPS*, and free cash flow* growth in 2025, guided by its FLIGHT DECK lean operating model. This confidence is based on the proven track record of FLIGHT DECK in addressing supply chain constraints and accelerating output, as well as the company's strategic initiatives to improve efficiency and productivity.



Strategic collaborations, such as the Open Fan engine design project with Boeing, NASA, and Oak Ridge National Laboratory, play a crucial role in GE Aerospace's innovation and growth strategy. This project, part of CFM International's RISE program, is a comprehensive technology demonstrator with over 250 tests completed since its unveiling in 2021. The Open Fan engine design is designed to improve energy efficiency in the aviation industry, supporting GE Aerospace's commitment to sustainable and innovative solutions.

By collaborating with industry leaders like Boeing, NASA, and Oak Ridge National Laboratory, GE Aerospace can leverage their expertise and resources to accelerate the development and deployment of cutting-edge technologies. This collaboration allows GE Aerospace to stay at the forefront of aerospace innovation, driving growth and competitive advantage in the market.

In conclusion, GE Aerospace's strong performance in the fourth quarter and full year 2024, coupled with its positive outlook for 2025, makes it an attractive investment opportunity. The company's robust demand for services and products, successful certifications and orders, effective supply chain management, integration of teams, and strategic collaborations all contribute to its long-term sustainability and growth potential. Investors should consider adding GE Aerospace to their portfolios, as the company is well-positioned to continue its impressive run in the aerospace industry.