NEW YORK - GE Aerospace commenced operations as an independent public company on the New York Stock Exchange (NYSE) under the ticker symbol GE, marking the final phase in GE's multi-year transformation plan.
The company, which boasts an installed base of roughly 44,000 commercial engines and approximately 26,000 military and defense engines globally, is positioned as a leader in aerospace propulsion, services, and systems.
The launch was celebrated today with GE Aerospace and GE Vernova, another entity from the GE corporate lineage, ringing the opening bell at the NYSE. GE Aerospace Chairman and CEO H. Lawrence Culp Jr. expressed his pride in the team's resilience and dedication, which he believes will carry the company's legacy of innovation into the future.
GE Aerospace, which reported around $32 billion in adjusted revenue for 2023, anticipates achieving approximately $10 billion in operating profit by 2028. The company's financial strategy includes a commitment to invest in growth and innovation while planning to return about 70-75% of available funds to shareholders.
This separation is part of GE's broader strategy to streamline its business, which has included reducing debt by over $100 billion since 2018 and adopting lean practices across its operations. The restructuring has resulted in the creation of three distinct companies: GE HealthCare (NASDAQ:GEHC), GE Vernova, and GE Aerospace, each aiming to build on GE’s history of innovation.
Shareholders of GE received shares of GE Vernova as part of the spin-off, executed in a tax-efficient manner for U.S. federal income tax purposes. GE Aerospace is set to issue its first quarterly earnings for 2024 on April 23 and will host a call to discuss the results.
The spin-off was supported by a team of legal and financial advisors, including Paul, Weiss, Rifkind, Wharton & Garrison LLP, Evercore, Morgan Stanley, and PJT Partners (NYSE:PJT), among others.
This article is based on a press release statement from GE Aerospace. For further details, GE Aerospace directs interested parties to its "Spin-off Resources" page.
InvestingPro Insights
As GE Aerospace embarks on a new journey as an independent entity, the market is watching closely. With a Market Cap of $191.72 billion, the company has a significant presence in the aerospace sector.
The P/E Ratio stands at 20.73, reflecting investor confidence in the company's earnings potential. Notably, GE has been a prominent player in the Industrial Conglomerates industry, and this expertise is expected to continue driving its success in aerospace.
Investors are also drawn to GE Aerospace's financial resilience and stability. An InvestingPro Tip highlights that the stock generally trades with low price volatility, which may appeal to those seeking steady performance. In addition, the company has a history of maintaining dividend payments for 53 consecutive years, a testament to its commitment to shareholder returns.
With the first quarterly earnings report as an independent company scheduled for April 23, analysts have revised their earnings upwards for the upcoming period, signaling optimism about GE Aerospace's financial outlook. For those interested in further insights and tips, there are 13 additional InvestingPro Tips available, which can be accessed through the company's profile on InvestingPro. Investors can take advantage of these insights and save on a yearly or biyearly Pro and Pro+ subscription with the coupon code PRONEWS24.
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