GE's Q1 revenue was US$16.1 billion, up 11% year-on-year, and US$400 million higher than market expectations; the operating profit of the aerospace business increased 24% to US$1.5 billion, and sales increased 15% to US$8.1 billion.
The Zhitong Finance App learned that General Electric (GE.US) raised its full-year profit forecast for its aviation business due to increased revenue from the commercial aircraft engine and service business. This is General Electric's first financial report since divesting its energy business GE Vernova Inc., on April 2. GE's Q1 revenue was $16.1 billion, up 11% year over year, above market expectations; operating profit increased 24% to $1.5 billion; non-GAAP earnings per share were $0.82, exceeding $0.12.
Sales in the aerospace business increased 15% to US$8.1 billion; total orders rose 14% to US$201 billion; organic orders increased 14%.
After the dissolution of the original General Electric Company, an independent GE Aerospace Company was established. General Electric is the world's largest producer of jet engines, powering mainline aircraft such as Airbus's A320neo and Boeing's 737 Max and 787 Dreamliner. It also has a large and profitable service business, benefiting from strong demand for air travel.
The company also announced plans to pay a large dividend for the first time since 2018, when CEO Larry Culp drastically cut dividends in one of his first moves since taking office.
Analysts have said General Electric will benefit from additional parts and service business because the airline will retain more of its existing fleet due to Boeing's production difficulties.
GE Vernova currently operates the grid, natural gas power generation, and wind turbine business, and the company will announce its first independent quarterly earnings report on April 25.
The company divested its medical device business, General Electric Medtech, in January 2023.
Performance Guidelines
General Electric said that this year's operating profit will reach 6.2 billion to 6.6 billion US dollars, which is higher than the forecast of 6.5 billion US dollars. The company also provided an adjusted earnings estimate per share, which would be between $3.80 and $4.05.
GE Aerospace reiterated that it is expected to generate more than $5 billion in free cash flow this year, and adjusted revenue will grow at a lower double-digit rate or higher.