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CAPITAL GOODS: GE Aerospace (GE Baa1[P]/BBB+/NR): 4Q24 Results

CAPITAL GOODS
USBulletCredit BulletsNorth America

Arguably marginal negative on increased buybacks, but leverage will still be low for the rating. We don’t expect much movement here.

  • GE reported revenue 4% ahead of consensus, up 14% YoY. Orders were up 46% demonstrating ongoing strong demand, particularly in engines.
  • Adj. EBITDA beat by 15% with pricing outpacing inflation, helped by increased servicing activity.
  • FCF was $1.5bn with $1.3bn expected. FY FCF has been almost fully returned to shareholders, with plans to return above FCF this year.
  • FY25 revenue is guided to grow LDD, with consensus at 11%. Adj. EBIT guidance is in line with consensus, as is FCF. With buybacks $1.8bn higher than expected and dividends increasing by ~$0.4bn (already expected), leverage should tick up next year by ~0.25x turns. We see ~1.3x net currently which is little changed YoY and QoQ.
  • Webcast 12.30 GMT https://edge.media-server.com/mmc/p/7sfb7j2b/.
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Arguably marginal negative on increased buybacks, but leverage will still be low for the rating. We don’t expect much movement here.

  • GE reported revenue 4% ahead of consensus, up 14% YoY. Orders were up 46% demonstrating ongoing strong demand, particularly in engines.
  • Adj. EBITDA beat by 15% with pricing outpacing inflation, helped by increased servicing activity.
  • FCF was $1.5bn with $1.3bn expected. FY FCF has been almost fully returned to shareholders, with plans to return above FCF this year.
  • FY25 revenue is guided to grow LDD, with consensus at 11%. Adj. EBIT guidance is in line with consensus, as is FCF. With buybacks $1.8bn higher than expected and dividends increasing by ~$0.4bn (already expected), leverage should tick up next year by ~0.25x turns. We see ~1.3x net currently which is little changed YoY and QoQ.
  • Webcast 12.30 GMT https://edge.media-server.com/mmc/p/7sfb7j2b/.