GE Aerospace has officially commenced operations as a standalone public entity, marking a significant chapter in the future of aviation. The company’s debut follows the successful spin-off of GE Vernova and is now listed on the New York Stock Exchange under the ticker symbol “GE.”
At the opening bell of the NYSE today, April 2, 2024, at 9:30 a.m. ET, a joint ceremony was held with GE Aerospace and GE Vernova to celebrate this momentous occasion.
H. Lawrence Culp Jr., Chairman and CEO of GE Aerospace, expressed his pride in the culmination of GE’s transformation into three independent companies. “This historic day is the result of our team’s resilience and unwavering commitment,” said Culp. He emphasized that GE Aerospace is poised to redefine the aerospace sector with its robust financial foundation and the innovative FLIGHT DECK operating model.
GE Aerospace launches with a formidable presence, boasting approximately 44,000 commercial engines and 26,000 military and defense engines globally. In 2023, the company reported an adjusted revenue of around $32 billion, with services contributing to 70% of this figure.
During the Investor Day in March, GE Aerospace confirmed its financial targets for 2024 and outlined a strategic vision for 2028, aiming for an operating profit of approximately $10 billion. The company also detailed its investment strategy focused on growth and innovation, alongside a commitment to return 70-75% of available funds to its shareholders.
The establishment of GE Aerospace is the final step in GE’s extensive financial and operational overhaul, which has seen the company reduce its debt by over $100 billion since 2018. The adoption of lean principles and a culture of continuous improvement have been pivotal in this transformation, leading to the creation of three specialized entities: GE HealthCare, GE Vernova, and GE Aerospace.
Shareholders of GE have been rewarded with shares of GE Vernova, receiving one share for every four shares of GE common stock held. The distribution was structured to be tax-efficient for U.S. shareholders.
Legal counsel for the transition was provided by Paul, Weiss, Rifkind, Wharton & Garrison LLP, with financial advisory led by Evercore, Morgan Stanley, and PJT Partners. Additional legal advice came from DLA Piper and Gibson, Dunn & Crutcher LLP, with financial guidance from Citibank, The Consello Group, BNP Paribas, and UBS.
GE Aerospace is set to announce its first-quarter earnings for 2024 on April 23, signaling the start of a new era for the company and its stakeholders.
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