General Electric Reports 8% Revenue Growth, Profitability Improvements in Q3 2024

General Electric Company (GE) reported its financial results for the third quarter and the nine months ended September 30, 2024, showcasing significant revenue growth and profitability improvements compared to the previous fiscal period.

For Q3 2024, GE's total revenues reached $9.8 billion, marking a $0.5 billion increase from $9.3 billion in Q3 2023. This growth was primarily driven by the Commercial Engines & Services segment, which saw a revenue increase of 8% to $5.015 billion. The overall profit for the quarter was $1.9 billion, a substantial rise of $1.6 billion from the prior year, resulting in a profit margin of 19.2%. Key contributors to this profit included gains on retained and sold ownership interests totaling $1.5 billion and increased segment profits.

Adjusted earnings per share for Q3 2024 were reported at $1.15, while continuing earnings per share stood at $1.56. The operating profit for the quarter was $1.8 billion, reflecting an operating profit margin of 20.3%, up from the previous year.

For the nine months ended September 30, 2024, total revenues amounted to $27.0 billion, an increase of $2.0 billion or 8% compared to the same period in 2023. However, net earnings for the nine months decreased to $4.7 billion from $7.9 billion in 2023, primarily due to reduced gains on ownership interests and increased restructuring charges.

The company faced challenges in global material availability and supplier delivery performance, which impacted production and delivery timelines. Despite these challenges, GE Aerospace secured a $1.1 billion contract to provide T700 series turbine engines to the U.S. Army, indicating ongoing strategic developments in defense contracts.

In terms of restructuring, GE reported increased charges of $0.3 billion, including a goodwill impairment loss of $0.3 billion related to the Colibrium Additive reporting unit. The company also completed the separation of its GE Vernova business into an independent entity in April 2024, contributing $515 million to fund its future operations.

Cash flows from operating activities for the nine months ended September 30, 2024, were $4.5 billion, up from $3.4 billion in the same period in 2023. Free cash flows also increased to $4.6 billion from $3.5 billion year-over-year. As of September 30, 2024, GE held $13.7 billion in cash and cash equivalents, with total borrowings decreasing to $19.9 billion from $20.5 billion at the end of 2023.

Overall, GE's performance in Q3 2024 reflects a robust recovery in revenue and profitability, driven by strategic initiatives and operational improvements, despite facing ongoing market challenges.