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GE Expects Aviation Unit to Drive Revenue Growth Through 2025

GE Expects Aviation Unit to Drive Revenue Growth Through 2025

Introduction:

General Electric Company (NYSE:GE) has announced that it expects its aviation unit to drive revenue growth through 2025. The company projected a low-double-digit to mid-teens expansion in its aviation unit. As air travel demand rebounds after the pandemic, the aviation unit is expected to report revenue growth in the mid- to high-teens in 2023. This development has led to a surge in GE shares, with the company’s CEO expressing confidence in the long-term prospects of the aviation unit.

GE Projects Revenue Growth in Aviation Unit:

General Electric Company (NYSE:GE) has projected that its aviation unit will drive revenue growth through 2025. The company expects revenue growth in the low-double digits to mid-teens as air travel demand continues to recover from the pandemic. The aviation unit supplies and services engines for jet makers like Boeing (NYSE:BA) and Airbus.

The aviation unit’s revenue growth is expected to be driven by its differentiated technology and extensive service capabilities. This projection is in line with the company’s long-term expectations for mid- to high-single-digit organic revenue growth and continued margin expansion, with free cash flow in line with net income.

Improved Free Cash Flow:

General Electric Company (NYSE:GE) has also projected an improvement in its free cash flow. The company expects its aviation unit to report revenue growth in the mid- to high-teens in 2023, along with $5.3 billion to $5.7 billion in operating profit. This projection is expected to result in improved free cash flow for the company.

The company’s CEO, H. Lawrence Culp, Jr., expressed confidence in the company’s ability to deliver on its projections. He said, “GE Aerospace is defining flight for today, tomorrow, and the future with our differentiated technology and extensive service capabilities. Looking ahead, we expect that over the long term this business will deliver mid- to high-single-digit organic revenue growth and continued margin expansion with free cash flow in line with net income.”

Surge in GE Shares:

The news of GE’s projection for revenue growth in its aviation unit and improved free cash flow has led to a surge in the company’s shares. The shares touched their highest mark since 2018, reflecting investor confidence in the company’s long-term prospects.

Conclusion:

General Electric Company (NYSE:GE) expects its aviation unit to drive revenue growth through 2025, with revenue growth projected in the mid- to high-teens in 2023. This projection is in line with the company’s long-term expectations for mid- to high-single-digit organic revenue growth and continued margin expansion, with free cash flow in line with net income. The news has led to a surge in GE shares, reflecting investor confidence in the company’s long-term prospects.

Author
Alice Scott is a prolific author with a keen interest in the stock market. As a writer for Livemarkets.com, she specializes in covering breaking news, market trends, and analysis on various stocks. With years of experience and expertise in the financial industry, Alice has developed a unique perspective that allows her to provide insightful and informative content to her readers.