- GE Aerospace reaffirms guidance and presents longer-term
financial outlook, including achieving ~$10B of operating profit*
in 2028
- Consistent profit and free cash flow* growth enabling continued
business investment and shareholder returns of ~70-75% of available
funds through dividends and share buy-backs
- GE Aerospace is ready to trade publicly as an independent
company on April 2, 2024 on the NYSE under the ticker “GE”
Today, GE Aerospace will host its 2024 Investor Day in New York,
New York. The event begins at 8:00am EST and can be viewed
virtually here. GE Chairman and CEO and GE Aerospace CEO H.
Lawrence Culp, Jr. will be joined by members of the leadership team
to discuss the strategic priorities and near- and longer-term
outlook for GE Aerospace in advance of launching as an independent
public company on April 2, 2024.
GE Chairman and CEO and GE Aerospace CEO H. Lawrence Culp, Jr.
said, “GE Aerospace is ready to launch as a standalone company on
April 2. As a global leader in propulsion, services, and systems,
we are delivering exceptional value for our customers with
unrivaled technology and service, and the highest levels of
operational reliability. With FLIGHT DECK, our proprietary lean
operating model, as the foundation, we will define flight for
today, tomorrow, and the future.”
Culp continued, “Looking ahead, our financial outlook
demonstrates confidence in our future, with a robust market and
demand for our products and services underpinning continued growth
across revenue, operating profit and cash generation. Our strong
balance sheet positions us to invest in growth and innovation,
while also returning approximately 70-75% of available funds
through our dividend and share buy-backs. I’m excited about GE
Aerospace’s future and our plans to deliver for customers and
maximize shareholder returns.”
During the Investor Day, GE Aerospace’s leadership team will
discuss how as a standalone company, the team is well-positioned to
create significant value through its:
- Large, growing installed base and differentiated technology and
customer service;
- Balanced commercial portfolio in narrowbody and widebody with
an extensive services network, delivering the most complete value
proposition with safety, efficiency, and reliability; and
- Position as the rotorcraft and combat engine provider of
choice, investing in next generation technology for U.S. and
international programs.
Financial Outlook
GE Aerospace reaffirmed its 2024 financial guidance and 2025
outlook, and initiated its 2028 outlook:
Financial metric
2024 guidance
2025 outlook
2028 outlook
Adjusted revenue*
Grow low-double-digits or more
Grow low-double-digits
High-single-digit CAGR ‘25-‘28
Operating profit*
$6.0 - $6.5 billion
$7.1 - $7.5 billion
~$10B
(Low-double-digit CAGR ‘25-’28)
Free cash flow*
>$5 billion
>100% conversion-a)
~100% conversion-a)
(a – FCF* conversion: FCF*/adjusted net
income*
Capital Allocation Framework
GE Aerospace will also unveil its capital allocation priorities
as a standalone company:
- Invest in growth and innovation: R&D and capex to
support customers and provide industry leading technology;
- Return cash to shareholders: ~70-75% of available funds
returned through dividend and buy-backs, including initial dividend
payout at 30% of net income, subject to board approval, and $15
billion share buy-back authorization; and
- Focused M&A: disciplined approach with a focus on
strategic, operational, and financial synergies.
This framework is underpinned by a strong, investment-grade
balance sheet, including available cash from free cash flow*,
future monetization of our AerCap note and remaining equity stake
in GE HealthCare, and a post-spin pro forma cash balance of $13
billion.
Event Webcast
GE Aerospace will broadcast the event live via webcast today
starting at 8:00am EST. The webcast and accompanying slide
presentation containing financial information can be accessed at
https://www.geaerospace.com/investor-day-2024. An archived version
of the webcast will be available on the website after the call.
GE Chairman and CEO and GE Aerospace CEO H. Lawrence Culp, Jr.,
will be joined by the following leaders: Russell Stokes, President
and CEO, Commercial Engines and Services; Farah Borges, Vice
President, Assembly, Test, Maintenance, Repair and Overhaul;
Mohamed Ali, Vice President, Engineering; Amy Gowder, President
& CEO, Defense and Systems; Riccardo Procacci, President and
CEO, Propulsion and Additive Technologies; Rahul Ghai, SVP &
CFO, GE and CFO, GE Aerospace; and Steve Winoker, VP & Chief
Investor Relations Officer.
Non-GAAP Financial Measures in Financial Outlook &
Framework
GE calculates forward-looking non-GAAP financial measures
including Adjusted revenue* growth, Operating profit*, Free cash
flow*, and Free cash flow* conversion based on internal forecasts
that omit certain amounts that would be included in GAAP financial
measures. GE does not provide reconciliations of these
forward-looking non-GAAP financial measures to the respective
corresponding GAAP metrics as it is unable to predict with
reasonable certainty and without unreasonable effort items such as
the impact of changes in currency exchange rates, impacts
associated with business acquisitions or dispositions, timing and
magnitude of restructuring activities and revaluation of strategic
investments, amongst other items. The timing and amounts of these
items are uncertain and could have a substantial impact on GE’s
results in accordance with GAAP.
Caution Concerning Forward Looking Statements:
This document contains “forward-looking statements” — that is,
statements related to future, not past, events. These forward-
looking statements often address GE’s expected future business and
financial performance and financial condition, and often contain
words such as “expect,” “anticipate,” “intend,” “plan,” “believe,”
“seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,”
“preliminary,” or “range.” Forward-looking statements by their
nature address matters that are, to different degrees, uncertain,
and are subject to risks, uncertainties and assumptions. For GE,
particular areas where risks or uncertainties could cause GE’s
actual results to be materially different than those expressed in
GE’s forward-looking statements include: GE’s success in executing
planned and potential transactions, including GE’s planned spin-off
of GE Vernova, and sales or other dispositions of GE’s remaining
equity interest in GE HealthCare, the timing for such transactions,
the ability to satisfy any applicable pre-conditions, and the
expected proceeds, consideration and benefits to GE; changes in
macroeconomic and market conditions and market volatility,
including risk of recession, inflation, supply chain constraints or
disruptions, interest rates, the value of securities and other
financial assets (including GE’s equity interest in GE HealthCare),
oil, natural gas and other commodity prices and exchange rates, and
the impact of such changes and volatility on GE’s business
operations, financial results and financial position; and GE’s
capital allocation plans, including the timing and amount of
dividends, share repurchases, acquisitions, organic investments,
and other priorities; and other factors that are described in the
“Risk Factors” section of GE’s Annual Report on Form 10-K for the
year ended December 31, 2023, as such description may be updated or
amended in any future reports that GE files with the SEC. These or
other uncertainties may cause GE’s actual future results to be
materially different than those expressed in its forward-looking
statements. GE does not undertake to update its forward-looking
statements.
GE’s Investor Relations website at www.ge.com/investor as well
as GE’s LinkedIn and other social media accounts, contain a
significant amount of information about GE, including financial and
other information for investors. GE encourages investors to visit
these websites from time to time, as information is updated and new
information is posted.
Additional Financial Information Additional financial
information can be found on the Company’s website at:
www.ge.com/investor under Events and Reports.
About GE GE (NYSE:GE) rises to the challenge of building
a world that works. For more than 130 years, GE has invented the
future of industry, and today the company’s dedicated team, leading
technology, and global reach and capabilities help the world work
more safely, efficiently, and reliably. GE’s people are diverse and
dedicated, operating with the highest level of integrity and focus
to fulfill GE’s mission and deliver for its customers.
www.ge.com
About GE Aerospace GE Aerospace is a global aerospace
propulsion, services, and systems leader with an installed base of
approximately 44,000 commercial and 26,000 military aircraft
engines. With a global team of 52,000 employees building on more
than a century of innovation and learning, GE Aerospace is
committed to inventing the future of fight, lifting people up, and
bringing them home safely. Learn more about how GE Aerospace and
its partners are defining flight for today, tomorrow and the future
at www.geaerospace.com
* Non-GAAP Financial Measure
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version on businesswire.com: https://www.businesswire.com/news/home/20240307831010/en/
GE & GE Aerospace Investor Contact: Steve Winoker,
617.443.3400 swinoker@ge.com GE Media Contact: Mary Kate
Mullaney, 202.304.6514 marykate.nevin@ge.com GE Aerospace Media
Contact: Nicole Sizemore, 203.945.9783
nicole.sizemore@ge.com
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