GE Aerospace has reported strong third-quarter results on October 22, 2024, with the company raising its full-year guidance following strong revenue growth and a rise in orders.
The engine supplier reported a total revenue of $9.8 billion for the third quarter, a 6% increase compared to the same period in 2023. Operating profit for the quarter rose 14% compared to the same quarter of last year to $1.8 billion - while free cash flow also improved by 5% - reaching $1.8 billion. The company also recorded a profit margin of 19.2% during the period.
Orders increased by 28% - with GE Aerospace recording $12.6 billion worth of new business during the quarter - reflecting an increase in demand across its engine portfolio.
Lawrence Culp, CEO and chairman of GE Aerospace commented on the quarter, he said: "The GE Aerospace team delivered strong results, with demand driving orders up 28%. We grew earnings by 25% and produced substantial free cash flow, largely driven by services. Given the strength of our results and expectations for the fourth quarter, we're raising our earnings and cash guidance for the year."
Culp added: “ Leveraging FLIGHT DECK we're focused on servicing and delivering our engines faster without compromising safety and quality. While there's more work to do, we made meaningful progress with engine deliveries improving more than 20% sequentially while also expanding aftermarket capacity. Our path forward is clear, and I am confident GE Aerospace is positioned to deliver a solid year in our first year as a standalone company."
During the third quarter, GE Aerospace grew LEAP engine shop visits by more than 20% compared to the same period last year. The company also expanded its aftermarket network by adding a dedicated LEAP maintenance, repair, and overhaul (MRO) shop in Poland.
GE Aerospace also achieved contracts with Avolon for 150 LEAP-1A engines to power 75 Airbus A320 aircraft. The company also received widebody engine commitments from EVA Air for GEnx engines to power four Boeing 787s and from Qatar Airways for 40 GE9X engines to power 20 Boeing 777s.
Looking ahead to the rest of the year, the company has raised its full year guidance on the back of strong results from this third quarter.
In earnings call on October 22, 2024, Culp commented on recent 777x delays, he said: “from an operational perspective no change from GE aerospace in respect to what we are doing in testing and preparing production ramp, excited about the engine, know aircraft is late but customers love and want the airplane, at this point it is a matter of time.”
He concluded that looking ahead, the company is poised to deliver “good growth” during the next year.