On April 2, GE Aerospace soared into independence as a publicly traded entity, marking a significant milestone in the evolution of flight after the completion of the GE Vernova spin-off. Trading under the ticker “GE” on the New York Stock Exchange (NYSE), GE Aerospace charts a course towards innovation and excellence.
H. Lawrence Culp Jr., Chairman and CEO of GE Aerospace, remarked, “Today signifies the culmination of years of transformative efforts, as we finalise the emergence of three distinct, publicly traded companies within GE. I commend our team for their unwavering commitment and resilience, bringing us to this historic juncture.”
He added, “With a rich heritage of innovation spanning a century, GE Aerospace embarks on its journey with a robust financial position and a clear vision to shape the future of aviation, prioritising safety and efficiency. Powered by FLIGHT DECK, our cutting-edge operational model, I am confident in our ability to unlock our full potential for the benefit of our customers, workforce and shareholders.”
Boasting an extensive global presence, GE Aerospace commands a formidable market position with approximately 44,000 commercial engines and 26,000 military and defence engines worldwide. In 2023 alone, the company reported an adjusted revenue of approximately US$32 billion, with services contributing to 70% of its earnings, underscored by the robust economics of the engine aftermarket.
During its Investor Day held in March, GE Aerospace reaffirmed its 2024 guidance and outlined a compelling long-term financial outlook, targeting an operating profit of ~US$10 billion by 2028. Furthermore, the company outlined its capital allocation strategy, aiming to fuel growth and innovation while delivering substantial returns to shareholders, with approximately 70-75% of available funds earmarked for this purpose.
The launch of GE Aerospace symbolises the culmination of GE’s extensive financial and operational restructuring efforts. Over recent years, the company has executed a series of measures to fortify its business, including a significant reduction of over US$100 billion in debt since 2018. Concurrently, GE has embraced lean principles and a culture of continuous improvement, fostering a robust foundation that facilitated the successful establishment of three independent entities – GE Healthcare, GE Vernova and now GE Aerospace – all poised to carry forward GE’s rich legacy of innovation into the future. (£1.00 = US$1.27 at time of publication).
