GE Aerospace leaps after boosting profit forecast following historic split

General Electric posted better-than-expected first-quarter earnings Tuesday, while lifting its full-year-profit forecasts, as the iconic industrial group transitions to its new future as an aerospace company under Chief Executive Larry Culp.

In its final report a a combined group, General Electric  (GE) , which completed its historic split into three separate companies earlier this month, posted adjusted earnings of 82 cents a share, more than triple the year-earlier figure and well ahead of the Wall Street consensus estimate of 66 cents a share. 

Adjusted revenue rose 11% from the year-earlier period to $16.1 billion, also topping analysts’ estimate of a $15.35 billion tally. 

GE Aerospace, which now operates as a stand-alone business and inherits the GE ticker on the NYSE, saw revenue rise 15% to $8.1 billion, with operating profit up 24% to $1.5 billion. 

GE CEO Larry Culp, who led the iconic industrial group’s turnaround after taking over in 2018, will run the group’s GE Aerospace division following its historic split into three separate companies. 

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Looking into the group’s current financial year, GE Aerospace sees adjusted operating profit in the region of $6.2 billion to $6.6 billion, a modest increase from its prior forecast, with earnings in the region of $3.80 to $4.05 per share

Revenue was forecast to grow by a low-single-digit percentage this year, and in the low double digits in 2025, GE said during an investor event last month.  

“We marked a new beginning in early April with the successful spinoff of GE Vernova and launch of GE Aerospace, completing our multiyear transformation,” Culp said in a statement. 

“Our teams achieved this milestone while delivering strong results in the first quarter led by significant profit and cash growth at GE Aerospace.”

“Moving forward as a focused global aerospace leader, we will continue to prioritize safety, quality, delivery and cost — always in that order — while also investing in our future and driving long-term profitable growth,” Culp added 

General Electric shares were marked 3.2% higher in premarket trading immediately following the earnings release to indicate an opening bell price of $155.60. Such a move would extend the stock’s year-to-date gain to around 53%.

Culp has also forecast that operating profit for the new GE business would reach $10 billion by 2028, citing the surge in aircraft demand tied to two of its biggest customers: Boeing  (BA)  and Airbus  (EADSY) . The group said its overall order book rose 35% from a year earlier to $11 billion.

GE Aerospace is also committed to paying out around 30% of its net income to shareholders through an initial dividend.

GE Vernova,  (GEV)  the group’s former energy division, listed on the NYSE earlier this month, while GE Healthcare Technologies GEHC went public last year and trades on the Nasdaq. 

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