Tue, Apr 22, 10:27 AM (21 days ago)
**General Electric Company (GE) (Ticker: GE) Q1 2025 Financial Summary** **Quarterly Financial Health:** - **Revenue:** $9.94 billion, up 11% YoY, driven by improved customer mix and pricing in equipment revenue and increased spare parts volume and shop visit workscope in services revenue. - **Net Income:** $1.97 billion, up 27% YoY, driven by increased segment profit and decreases in separation costs and restructuring charges. - **Adjusted Net Income:** $1.60 billion, up 56% YoY, driven by increased segment profit and decreased adjusted corporate & other operating costs. - **Profit Margin:** 22.6%, up from 22.2% in Q1 2024. - **Operating Profit Margin:** 23.8%, up from 19.2% in Q1 2024. - **Cash Flow from Operations:** $1.54 billion, down 6% YoY, primarily due to increased income tax payments and working capital growth. - **Free Cash Flow:** $1.44 billion, down 13% YoY, due to separation cash expenditures and corporate & other restructuring cash expenditures. **Segment Performance:** - **Commercial Engines & Services:** Revenue up 14% YoY to $6.98 billion, profit up 35% YoY to $1.92 billion. Increased spare parts volume, shop visit volume, and improved pricing offset lower engine deliveries due to supply chain constraints. - **Defense & Propulsion Technologies:** Revenue up 1% YoY to $2.32 billion, profit up 16% YoY to $296 million. Increased aircraft systems product growth, customer mix, and productivity offset incremental investments and inflation. **Trends and Uncertainties:** - **Supply Chain Constraints:** Continued disruptions and inflationary pressures are expected to impact production and delivery. - **Tariffs:** Additional costs due to tariffs are being mitigated through pricing actions and operational optimizations. - **Global Economic Trends:** Geopolitical risks, inflation, and supply chain constraints may affect demand and financial results. - **Legal and Environmental Matters:** Ongoing litigation and environmental remediation activities may result in future charges and liabilities. **Future Operations Impact:** - **Investments:** GE is investing in manufacturing facilities, overhaul facilities, and the supply chain to increase production and strengthen yield. - **Share Repurchases:** GE repurchased 9.5 million shares for $1.91 billion in Q1 2025. - **Credit Ratings:** Moody's and S&P upgraded GE's long-term ratings, reflecting improved financial position and liquidity. **Forward-Looking Statements:** - GE expects to continue investing in future growth and innovation through research and development and capital expenditures. - The company intends to return a majority of its free cash flow to shareholders through dividends and share repurchases. - GE will pursue merger and acquisition investments in a disciplined way, focusing on strategic, operational, and financial synergies.