Q4 2024 General Electric Co Earnings Call Transcript
Key Points
- GE Aerospace (GE) reported a strong financial performance in 2024, with revenue up double digits, profit up $1.7 billion, and free cash flow up $1.3 billion.
- The company achieved significant commercial momentum, signing key services agreements and receiving orders for over 4,600 commercial and defense engines.
- GE Aerospace (GE) launched FLIGHT DECK, a lean operating model, to enhance safety, quality, delivery, and cost efficiency.
- The LEAP-1A HPT durability kit was certified, expected to double LEAP time on wing and improve production efficiency.
- GE Aerospace (GE) plans to increase share repurchases to $7 billion and raise its dividend by 30%, reflecting a strong balance sheet and commitment to shareholder returns.
- Supply chain constraints impacted total deliveries, with LEAP deliveries down 5% in the fourth quarter.
- Internal shop visit volume was lower than expected due to material constraints, affecting CES services revenue.
- The company faces ongoing challenges with 15 critical suppliers, requiring significant internal resources to address.
- Despite improvements, inventory levels increased due to material availability challenges.
- The GE9X engine program is expected to be a headwind in 2025, with increased shipments impacting profitability.
Good day, ladies and gentlemen, and welcome to the GE Aerospace fourth-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the program over to your host for today's conference, Blaire Shoor, Head of Investor Relations. Please proceed.
Thanks, Liz. Welcome to GE Aerospace's fourth-quarter and full-year 2024 earnings call. I'm joined by Chairman and CEO, Larry Culp; and CFO, Rahul Ghai.
Many of the statements we're making are forward looking and based on our best view of the world and our businesses as we see them today. As described in our SEC filings and website, those elements may change as the world changes. Additionally, Larry and Rahul, consistent with prior quarters, will speak to total company and corporate financial results and guidance today on a non-GAAP basis.
Now, over to Larry.
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