GE boosts outlook on aerospace gains, rebound in renewables

General Electric raised its full-year guidance and reported second-quarter results that blew past Wall Street’s expectations as the manufacturer capitalizes on rebounding renewable-energy orders and an air travel boom that continues to drive demand for jet engines. Adjusted earnings in 2023 will be $2.10 to $2.30 a share, the maker of aerospace and power-generation equipment said Tuesday. That’s up from no more than $2 and above the $2.05 average of analyst estimates compiled by Bloomberg. GE now expects free cash flow of as much as $4.6b compared to no more than $4.2b under its prior outlook. “With the demand that the airlines continue to see, the push in turn on our services business couldn’t be stronger,” CEO Larry Culp said. “It’s hard to argue with just the broad-based strength that we’re seeing at aero.” The stock has soared nearly 70% this year amid renewed investor interest in the once-sprawling conglomerate as Culp prepares the company to become a pure-play aerospace manufacturer by early next year. GE has said it plans to more than double earnings this year amid booming demand for jet engines and maintenance services at GE Aerospace, which generates the majority of company profits. Since becoming CEO in 2018, Culp has sold huge businesses, slashed debt and overhauled factory operations to reshape the iconic corporation from a troubled giant to a smaller, more streamlined company. GE Aerospace, which primarily manufacturers and services military and commercial jet engines, will become a standalone business next year following the early 2024 spinoff of GE Vernova, the power-generation and renewable-energy units.<br/>