GE Aerospace today announced its official launch as an independent, publicly traded company defining the future of flight, following the completion of the spin-off of GE Vernova. GE Aerospace will be traded on the New York Stock Exchange under the ticker symbol “GE”. Today, April 2, at 10:30 a.m. ET, GE Aerospace and GE Vernova will ring the NYSE opening bell together.
GE Aerospace Chairman and CEO H. Lawrence Culp Jr. said, “With the successful completion of the launch of three independent, publicly traded companies – today marks a historic final step in GE’s multi-year transformation. I am tremendously proud of our team, their resilience and dedication in bringing us to this turning point.”
Culp also said, “Building on a century of learning and carrying forward GE’s legacy of innovation, GE Aerospace moves forward with a strong balance sheet and increased focus to invent the future of flight, lift people up and bring them home safely. Based on FLIGHT DECK, our proprietary lean model, I am confident that we will reach our full potential in service to our customers, employees and shareholders.”
With an installed base of approximately 44,000 commercial engines and 26,000 military and defense engines worldwide, GE Aerospace casts itself as an established global leader in propulsion, services and systems. The company generated adjusted revenues of around $32 billion* in 2023, and around 70% of this was generated by services and the strong engine aftermarket activity.
At GE Aerospace’s Investor Day in March, the company reaffirmed its future performance indications for 2024 and presented a long-term financial outlook, including the expectation of achieving operating profit of around $10 billion* in 2028. In addition, GE Aerospace shared its capital allocation structure to invest in growth and innovation, while returning approximately 70-75% of its available resources to shareholders.
The launch of GE Aerospace represents the completion of years of GE’s financial and operational transformation. In recent years, GE has taken steps to significantly strengthen the business, including a reduction of more than $100 billion in its debt since 2018. At the same time, the implementation and adoption of the Lean concept throughout the organization and the relentless pursuit of continuous improvement at the service of customers have enabled a profound and sustainable change in its culture. This strong foundation has enabled the successful creation of three independent companies – GE HealthCare, GE Vernova and GE Aerospace – each of which is now well positioned to continue building on GE’s history of innovation.
Holders of GE common stock received one share of GE Vernova common stock for every four shares of GE common stock. For U.S. federal income tax purposes, the distribution was conducted in a tax-efficient manner for GE’s U.S. shareholders.
The law firm Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal advisor. Evercore, Morgan Stanley and PJT Partners were GE’s principal financial advisors on the transaction. GE also received legal advice from DLA Piper and Gibson, Dunn & Crutcher LLP and financial advice from Citibank, The Consello Group, BNP Paribas and UBS.
GE Aerospace
GE Aerospace is a global leader in aerospace propulsion, services and systems with an installed base of approximately 44,000 commercial aircraft engines and 26,000 military aircraft engines. With a global team of 52,000 employees driving more than a century of innovation and learning, GE Aerospace is committed to inventing the future of flight, lifting people up and bringing them home safely.