The following is a summary of the GE Electric Company (GE) Q1 2024 Earnings Call Transcript:

Financial Performance:

• GE reported a Q1 increase in profits with a revenue increase of 10% across all segments.
• An operating profit of $1.5 billion was reported, which was a rise of over $600 million, attributing to 300 basis points of organic margin expansion mainly due to pricing and volume.
• The massive year-over-year increase in Adjusted EPS was notable at $0.82, more than thrice the previous amount.
• GE reported its Q1 free cash flow at $850 million, a significant rise of over 5x primarily due to higher earnings and reduction in working capital.
• GE Aerospace made a significant contribution with double-digit growth in revenue and profit, and free cash flow doubled over the year.

Business Progress:

• The completion of GE Vernova’s spin-off and a successful $100 billion debt reduction since 2018 marked valuable progress.
• GE secured several new contracts including a deal with Thai Airways for powering its new Boeing 787 fleet with GEnx-1B engines and American Airlines for 85 new Boeing 737 MAX Jets using their LEAP-1B engines.
• The new operating model, FLIGHT DECK, helped improve shop turnaround times alongside leading innovations in flight technology, all of which contribute towards a projected $10 billion operating profit by 2028.
• GE plans to accelerate investment in R&D to support LEAP’s durability and the introduction of the 9X alongside developing future flight techniques.
• GE Aerospace has planned an investment of $650 million to operationalize FLIGHT DECK and a broad-based enhancement of their domestic footprint. There’s also an expected migration from CSAs to T&M contracts with about 60% of the shop visits done in-house by Safran and GE Aerospace.