GE Aerospace’s Strategic Position in Defense & Propulsion Technologies: Is There Any Kind Of Sustainable Competitive Advantages?

General Electric (GE) Aerospace showcased a robust performance in its Q3 2024 earnings, underscored by substantial growth in orders, revenue, and operating profit, while also facing challenges in specific segments. Positively, GE Aerospace reported a significant 28% increase in orders, driven by heightened demand. Revenues rose by 6%, which, coupled with a 14% uplift in operating profit and a 25% increase in adjusted EPS, highlighted strong operational performance. Free cash flow also surged, reaching $1.8 billion with a conversion rate exceeding 140%. In the Commercial Engines & Services (CES) sector, a 29% increase in orders was fueled by over 20% growth in both services and equipment. Notably, the company secured a backlog of $149 billion, primarily concentrated in services. Service revenues were up 10%, reflecting increased aftermarket demand and supporting total operating profit growth of 16%. GE Aerospace is aggressively expanding its aftermarket capacity and boosting original equipment deliveries, which is expected to further support revenue growth. In the Defense & Propulsion Technologies (DPT) domain, orders rose by 19%, emphasizing strong demand, although profits in this segment saw a decline.