• GE Aerospace reaffirms guidance and presents longer-term financial outlook, including achieving ~$10B of operating profit* in 2028
  • Consistent profit and free cash flow* growth enabling continued business investment and shareholder returns of ~70-75% of available funds through dividends and share buy-backs
  • GE Aerospace is ready to trade publicly as an independent company on April 2, 2024 on the NYSE under the ticker “GE”

New York. 07 March 2024. Today, GE Aerospace will host its 2024 Investor Day in New York, New York. The event begins at 8:00am EST and can be viewed virtually here. GE Chairman and CEO and GE Aerospace CEO H. Lawrence Culp, Jr. will be joined by members of the leadership team to discuss the strategic priorities and near- and longer-term outlook for GE Aerospace in advance of launching as an independent public company on April 2, 2024.

GE Chairman and CEO and GE Aerospace CEO H. Lawrence Culp, Jr. said, “GE Aerospace is ready to launch as a standalone company on April 2. As a global leader in propulsion, services, and systems, we are delivering exceptional value for our customers with unrivaled technology and service, and the highest levels of operational reliability. With FLIGHT DECK, our proprietary lean operating model, as the foundation, we will define flight for today, tomorrow, and the future.”

Culp continued, “Looking ahead, our financial outlook demonstrates confidence in our future, with a robust market and demand for our products and services underpinning continued growth across revenue, operating profit and cash generation. Our strong balance sheet positions us to invest in growth and innovation, while also returning approximately 70-75% of available funds through our dividend and share buy-backs. I’m excited about GE Aerospace’s future and our plans to deliver for customers and maximize shareholder returns.”

During the Investor Day, GE Aerospace’s leadership team will discuss how as a standalone company, the team is well-positioned to create significant value through its:
•    Large, growing installed base and differentiated technology and customer service;
•    Balanced commercial portfolio in narrowbody and widebody with an extensive services network, delivering the most complete value proposition with safety, efficiency, and reliability; and
•    Position as the rotorcraft and combat engine provider of choice, investing in next generation technology for U.S. and international programs.

Financial Outlook

Financial metric 2024 guidance 2025 outlook 2028 outlook
Adjusted revenue* Grow low-double-digits or more Grow low-double-digits High-single-digit CAGR ’25-’28
Operating profit* $6.0 – $6.5 billion $7.1 to $7.5 billion ~$10B (low-double-digit CAGR ’25-’28)
Free cash flow* >$5 billion >100% conversion(-a) ~100% conversion (-a)

(a – FCF* conversion: FCF*/adjusted net income*

Capital Allocation Framework

GE Aerospace will also unveil its capital allocation priorities as a standalone company:

  • Invest in growth and innovation: R&D and capex to support customers and provide industry-leading technology;
  • Return cash to shareholders: ~70-75% of available funds returned through dividend and buy-backs, including initial dividend payout at 30% of net income, subject to board approval, and $15 billion share buy-back authorization; and
  • Focused M&A: disciplined approach with a focus on strategic, operational, and financial synergies.

This framework is underpinned by a strong, investment-grade balance sheet, including available cash from free cash flow*, future monetization of our AerCap note and remaining equity stake in GE HealthCare, and a post-spin pro forma cash balance of $13 billion.

Event Webcast

GE Aerospace will broadcast the event live via webcast today starting at 8:00am EST. The webcast and accompanying slide presentation containing financial information can be accessed at https://www.geaerospace.com/investor-day-2024. An archived version of the webcast will be available on the website after the call.

GE Chairman and CEO and GE Aerospace CEO H. Lawrence Culp, Jr., will be joined by the following leaders: Russell Stokes, President and CEO, Commercial Engines and Services; Farah Borges, Vice President, Assembly, Test, Maintenance, Repair and Overhaul; Mohamed Ali, Vice President, Engineering; Amy Gowder, President & CEO, Defense and Systems; Riccardo Procacci, President and CEO, Propulsion and Additive Technologies; Rahul Ghai, SVP & CFO, GE and CFO, GE Aerospace; and Steve Winoker, VP & Chief Investor Relations Officer

Non-GAAP Financial Measures in Financial Outlook & Framework 

GE calculates forward-looking non-GAAP financial measures including Adjusted revenue* growth, Operating profit*, Free cash flow*, and Free cash flow* conversion based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. GE does not provide reconciliations of these forward-looking non-GAAP financial measures to the respective corresponding GAAP metrics as it is unable to predict with reasonable certainty and without unreasonable effort items such as the impact of changes in currency exchange rates, impacts associated with business acquisitions or dispositions, timing and magnitude of restructuring activities and revaluation of strategic investments, amongst other items. The timing and amounts of these items are uncertain and could have a substantial impact on GE’s results in accordance with GAAP.