Today marks a significant milestone for GE Aerospace as it officially launches as an independent public company, charting its course in shaping the future of aviation following the completion of the GE Vernova spin-off.
Traded under the ticker symbol “GE” on the New York Stock Exchange (NYSE), GE Aerospace’s journey begins with a ceremonial bell ringing alongside GE Vernova at 9:30 a.m. ET, signifying a new era in aviation innovation and development.
H Lawrence Culp Jr., the Chairman and CEO of GE Aerospace, expressed pride in the team’s resilience and dedication, emphasizing this moment as the culmination of a multi-year transformation of GE. And, he highlighted the company’s rich legacy of innovation, spanning a century of learning, and underscored GE Aerospace’s commitment to inventing the future of flight while prioritizing safety and efficiency.
With approximately 44,000 commercial engines and 26,000 military and defence engines installed worldwide, GE Aerospace emerges as a global leader in propulsion, services, and systems. In 2023 alone, the company generated approximately US$32 billion in adjusted revenue, with services contributing to 70 percent of its earnings, showcasing the strong economic potential of the engine aftermarket.
At its recent Investor Day in March, GE Aerospace reaffirmed its 2024 guidance and outlined a long-term financial outlook, projecting an operating profit of around $10 billion by 2028. Additionally, the company shared its capital allocation framework, aimed at fostering growth and innovation while prioritizing shareholder returns.
According to an official statement issued by the company, the launch of GE Aerospace represents the culmination of GE’s extensive financial and operational restructuring efforts over the past several years. With over US$100 billion in debt reduction since 2018 and a company-wide adoption of lean practices, GE has laid a robust foundation for its independent entities, including GE HealthCare, GE Vernova, and now GE Aerospace, to thrive and innovate.
Shareholders of GE common stock received one share of GE Vernova common stock for every four shares of GE common stock held, ensuring a smooth transition for investors. The distribution was executed in a tax-efficient manner for shareholders in the United States.
Legal counsel for the spin-off was provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP, while Evercore, Morgan Stanley, and PJT Partners served as the lead financial advisors to GE. The company also received support from DLA Piper and Gibson, Dunn & Crutcher LLP for legal advice, and Citibank, The Consello Group, BNP Paribas, and UBS for financial advice. Looking ahead, GE Aerospace will announce its first-quarter 2024 earnings on April 23, 2024.
GE Operations in India
It has been reported previously by Financial Express Online that GE Aerospace’s military engines are part of LCA Mark 1 and Mark II programs. Its propulsion technology powers the Indian Navy’s aircraft carrier `INS Vikrant’ and several other naval ships.
Also, during Prime Minister Narendra Modi’s State visit to the US, the company announced its plan to locally co-produce with state-owned Hindustan Aeronautics the F414 engine for the LCA programme for the Indian Air Force (IAF).
The 24-year-old engineering centre in Bengaluru houses 1200 researchers and engineers that are working on improving durability and reliability of current in-use engines and on developing new engine technology. The Pune factory and a network of 13 Indian suppliers are an integral part of the global engine supply chain.
The company has been operating in India since 1982. Over 700 GE and partner engines are powering aircrafts in India and another 2000 engines are on order by Indian airlines.