GE Aerospace profit up thanks to higher demand for new engines and services

GE Aerospace can look back on a strong 2023. The engine maker recorded a 22 percent increase in orders to $38.1 billion from organic growth. The blockbuster order from Emirates

for 202 GE9X turbofans for 90 Boeing 777X announced in November was, of course, a huge boost. For 2024, GE expects low double-digit revenue growth and an operating profit that should be slightly up on last year.

The $38.1 billion order intake compares to $31.1 billion in 2022. Total revenues for GE Aerospace also increased by 22 percent to $31.8 billion from $26.1 billion. Of this, $13.5 billion is from new engine orders and $$24.6 billion from services, which reported a 25 percent increase year on year. The operating profit was $6.1 billion, up 28 percent from $4.8 billion. This translates into a profit margin of 19.2 percent. Earnings per share were $7.98 GAAP or $2.81 Adjusted.

In Q4, orders grew 10 percent to $10.6 billion from $9.7 billion in the same period of 2022. Equipment orders were $4.2 billion, but $6.4 billion came from services and spares. Revenues were up by 12 percent to $8.5 billion from $7.6 billion. The operating profit was $1.6 billion versus $1.4 billion in the previous year, with the margin flat at 18.8 percent. The profit was slightly lower than the $1.7 billion in Q3.