GE Aerospace's Stellar Q4 Earnings: A Beacon for Future Growth

GE Aerospace (NYSE: GE) shares surged premarket on Thursday, following the company's impressive fourth-quarter results. The jet engine and aerospace parts manufacturer reported adjusted revenue growth of 16% year-over-year to $9.879 billion and GAAP revenue of $10.812 billion, surpassing analyst expectations of $9.604 billion. This strong performance was driven by robust demand for services and products, with Commercial Engines & Services revenue growing 19% and Defense & Propulsion Technologies revenue increasing 4% year-over-year.



GE Aerospace's adjusted operating profit margin expanded 450 basis points (bps) to 20.1%, with an adjusted operating profit of $1.988 billion, up 49% in the quarter. The company's adjusted earnings per share (EPS) for the quarter soared 103% year-over-year to $1.32, beating the consensus estimate of $1.04. GE Aerospace's cash from operating activities for the fiscal year stood at $5.8 billion, up 26%, while adjusted free cash flow rose 28%.

The company's impressive performance was further bolstered by its plans to return capital to shareholders. GE Aerospace announced a $7 billion stock buyback for 2025, in addition to the $6 billion repurchased in 2024. The company also plans to raise its dividend by 30%, subject to Board approval. These moves demonstrate GE Aerospace's commitment to shareholder value and its confidence in the company's financial strength.



GE Aerospace's strong fourth-quarter results and positive outlook for 2025 reflect the company's long-term growth prospects. The company expects adjusted revenue growth in the low double digits, with adjusted EPS of $5.10 – 5.45 and adjusted operating profit of $7.8 billion – $8.2 billion. GE Aerospace's Chairman and CEO, H. Lawrence Culp, Jr., expressed confidence in the company's ability to accelerate output and deliver for customers, guided by the company's proprietary lean operating model, FLIGHT DECK.

In conclusion, GE Aerospace's stellar Q4 earnings, driven by robust demand, improved operating efficiency, and strategic capital allocation, position the company for continued growth and success in the future. Investors can gain exposure to the stock through the TCW Transform Systems ETF (NYSE: NETZ) and iShares U.S. Aerospace & Defense ETF (BATS: ITA). As GE Aerospace continues to execute on its strategic initiatives and deliver strong financial performance, it remains an attractive investment opportunity in the aerospace and defense sector.