GE Aerospace surged on Thursday after the aircraft engine maker unveiled expectation-topping fourth-quarter figures and boosted shareholder rewards.
Net income climbed by 49% to US$1.9 billion and trounced analysts’ expectations for US$1.2 billion, as revenue also surpassed forecasts, up 14% at US$10.8 billion.
Revenue from its commercial engines unit beat expectations at US$7.65 billion, as turnover from GE’s other key defence and propulsion division came in at US$2.52 billion.
Chief executive Henry Lawrence Culp highlighted “robust demand for our services and products” over the quarter.
He added it had “capped off a monumental first year as a standalone company,” following GE Aerospace’s spin-off from General Electric Co (NYSE:GE).
Guidance was laid out for double-digit revenue growth on 2024’s US$35.1 billion over the coming year, with operating profit seen rising from US$7.3 billion to between US$7.8 and US$8.2 billion.
Plans for US$7 billion worth of share buybacks in 2025 were also unveiled, alongside a 30% increase in dividend payments from the US$0.28 a share currently paid out quarterly.
Shares jumped 7.5% to US$188.36 ahead of Thursday’s open.