Q3 2024 General Electric Co Earnings Call Transcript
Key Points
- GE Aerospace (GE) reported a 28% increase in orders, driven by strong demand across its segments.
- Revenue grew by 6% due to growth in services and equipment, with operating profit up 14% and adjusted EPS up 25%.
- Free cash flow was $1.8 billion, with a conversion rate of over 140%, indicating strong cash generation.
- The company raised its full-year guidance based on strong year-to-date performance and fourth-quarter expectations.
- GE Aerospace (GE) is making significant progress in expanding its aftermarket capacity and improving LEAP engine durability, which is expected to enhance time on wing by 2.5 times.
- Despite an increase in orders, profit in the Defense & Propulsion Technologies segment declined due to lower engine deliveries year over year.
- Supply chain constraints impacted shipments, with total engine deliveries down 4%, including a 6% decrease in LEAP engine deliveries.
- The company faces ongoing material availability challenges, leading to increased inventory levels.
- There is pressure on margins due to higher inflation and increased investments, particularly in the Defense & Propulsion Technologies segment.
- The delay in Boeing's 777X program presents operational and financial challenges for GE Aerospace (GE), impacting future engine deliveries and profitability.
Good day, ladies and gentlemen, and welcome to the GE Aerospace third-quarter 2024 earnings conference call. (Operator Instructions) My name is Liz and I will be your conference coordinator today. (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 from the GE Aerospace Investor Relations team. Please proceed.
Thanks, Liz. Welcome to GE Aerospace's third-quarter 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. Now, over to Larry.
Blaire, thank you, and good morning. We're pleased to be joining you from GE
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