General Electric (GE) Q4 2024 Earnings Call Transcript
Here are the specific viewpoints from the earnings call:
Bullish Points:
1. GE Aerospace became a stand-alone public company in April 2024, marking the culmination of GE's multiyear transformation.
2. Commercial momentum continues with several key services agreements and orders for more than 4,600 commercial and defense engines.
3. Certification of the LEAP 1A HBT durability kit, designed to increase LEAP time on wing by more than twofold current levels.
4. Significant technology milestones, including the RISE program with CFM and collaboration with Boeing, NASA, and Oak Ridge National Laboratory.
5. Financially, GE Aerospace delivered a standout year with revenue up double digits, profit up $1.7 billion, and free cash flow of $1.3 billion.
6. In the fourth quarter, orders were up 46%, revenue grew 16%, profit was up nearly 50%, and EPS more than doubled.
7. For 2025, GE Aerospace expects substantial revenue, EPS, and cash growth, with profit in the range of $7.8 billion to $8.2 billion.
8. Increasing share repurchases to $7 billion and planning to raise the dividend by 30%, subject to board approval.
9. Strong demand for services and products, highlighted by orders up 46% in the fourth quarter.
10. GE Aerospace is poised for another year of growth with expected free cash flow of $6.3 billion to $6.8 billion.
Bearish Points:
1. Supply chain constraints impacted total deliveries, with LEAP deliveries down 10% for the year.
2. Internal shop visit volume was lower than expected due to material constraints.
3. The spare engine ratio for LEAP is expected to gradually come down, which may impact future profitability.
4. Higher cash tax payments and a step-up in capex are expected to offset contributions from working capital and AD&A.
For more information about GE Aerospace's earnings call, you can read the relevant news: General Electric (GE) Q4 2024 Earnings Call Transcript
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