GE: Strong Financial Moves Reinforce Growth Strategy — But 2017 Guidance Fallout Still Weighs
Court: S.D. New York
Case: 1:17-cv-08457
GE Aerospace completed a $2 billion notes offering, reinforcing its capital base and signaling confidence in its long-term growth strategy. The move comes as institutional investors show renewed interest in the stock and analysts issue a wave of bullish revisions. However, the company still carries legal baggage from the fallout of its overstated 2017 financial guidance.
Key Developments
- GE Aerospace raised $2B via dual tranches: $1B due 2030, $1B due 2036
- Proceeds will support capital structure stability and expansion in aviation and defense
- Q2 2025 earnings exceeded expectations:EPS of $1.66 vs. $1.43 consensusRevenue of $10.15B, up 21.2% YoY
- Dividend of $0.36/share paid on July 25 (annualized $1.44)
- Analyst upgrades: Barclays, UBS, Citi, RBC all raised targets
- GE Aerospace stock is rated “Buy” with a $216 price target
- Institutional buyers include Indie Asset Partners, Brighton Jones LLC, and Revolve Wealth Partners
Timeline Overview
- October 20, 2017: GE cut cash flow guidance; GE fell 7%
- November 13, 2017: Announced 50% dividend cut; stock dropped 12.5%
- January 16, 2018: Disclosed $6.2B insurance charge, triggering a 13% drop
- November 1, 2019: Investors filed suit over misleading financial disclosures
- January 2025: Settlement finalized between GE and investors
Allegations Include
- Overstatement of 2017 cash flow and performance projections
- Concealing risks tied to long-term care insurance liabilities
- Misleading shareholders about Power segment weakness
Investor Update
GE Aerospace has since distanced itself from the troubled legacy of GE’s conglomerate structure, emerging as an independent powerhouse focused on propulsion, defense, and aerospace services. While the 2025 legal settlement helps close a chapter, the $362.5 million cash payout underscores the magnitude of prior mismanagement. With a fortified balance sheet and robust earnings momentum, the company now aims to re-establish investor confidence under its aerospace-focused mandate.
You can check more information about it and file for a payout HERE.