GE Financial Analysis

Analysis Date: 1/27/2025

Business Model

GE Aerospace generates revenue primarily through commercial engines & services (CES) and defense & propulsion technologies (DPT)

Revenue Sources

• Commercial Engines & Services (CES) - 74% of total revenue
• Defense & Propulsion Technologies (DPT) - 26% of total revenue

Revenue Distribution by Channel

• Services Revenue: $24.8B (71% of total revenue)
• Equipment Revenue: $10.3B (29% of total revenue)

Income Statement Analysis

• Revenue grew 14% year-over-year in Q4 2024
• Operating profit increased 49% with margin expansion of 450 basis points
• Strong services growth with 12% increase in Q4

Balance Sheet Analysis

• Strong liquidity position with $13.6B in cash
• Total assets decreased mainly due to discontinued operations

Cash Flow Analysis

• Strong FCF growth of 21% in Q4 2024
• Full year FCF increased 28% to $6.1B

Capital Allocation

Returned over $6B to shareholders in 2024, announced $7B share repurchase plan for 2025 and 30% dividend increase

Management Commentary

Strong finish to 2024 with Q4 orders up 46%

Expect double-digit revenue and EPS growth in 2025

Supply chain improvements with priority suppliers meeting >90% of committed volume

Overall Sentiment: Very positive with strong execution and outlook for 2025

Recommendation

Rating: Buy

Reason for Rating: Strong operational execution, improving margins and robust growth outlook

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/27/2025, 11:24:42 AM