Free cash flow takeaway
A quick read on the company's cash generation and what it means for investors.
Revenue and free cash flow improved sequentially from the prior quarter, but free cash flow declined compared to the same quarter last year. The free cash flow margin strengthened on a sequential basis while weakening year over year.
- Operating cash flow increased sequentially, contributing to higher free cash flow despite a reduction in capital expenditure. The conversion from revenue to free cash flow improved versus the prior quarter but was lower than the year-ago period.
- Compared to the immediately preceding quarter, revenue and free cash flow were higher and the margin improved. Relative to the same quarter one year earlier, revenue was higher but free cash flow and margin were lower.
FCF snapshot
Quarterly and TTM cash-flow metrics with the minimum valuation context.
TTM free cash flow
$5.5B
Trailing twelve-month free cash flow.
Quarter free cash flow
$1.2B
Free cash flow in the selected fiscal quarter.
Operating cash flow
$1.5B
Cash generated by operations before capital spending.
CapEx
$266.0M
Capital spending and related asset purchases.
FCF margin
12.6%
The share of revenue converted into free cash flow.
Cash flow trend
A short quarterly history shows whether FCF is scaling with revenue or only spiking for one period.
| Period | Revenue | Operating CF | CapEx | FCF | FCF margin |
|---|---|---|---|---|---|
| 2023-12-31 | $8.5B | $3.1B | $250.0M | $2.9B | 33.8% |
| 2024-03-31 | $9.0B | $994.0M | $204.0M | $790.0M | 8.8% |
| 2024-06-30 | $9.1B | $911.0M | $295.0M | $616.0M | 6.8% |
| 2024-09-30 | $9.8B | $1.5B | $266.0M | $1.2B | 12.6% |
Cash conversion quality
Checks that separate high-quality free cash flow from accounting noise or working-capital timing.
| FCF / net income | 67.1% | Shows whether accounting earnings convert into cash. |
| CapEx / revenue | 2.7% | Lower capital intensity usually supports FCF margin. |
| Net cash | n/a | Cash and equivalents minus total debt. |
Recent events shaping cash flow
Near-term business events that help explain the free cash flow result.
Aftermarket Services and Lean Operations
The filing highlights GE Aerospace's large installed base of commercial and military engines and its aftermarket services business, which represents a significant portion of revenue. The company's FLIGHT DECK lean operating model is emphasized as a driver of focused execution and results.
The sequential improvement in revenue and free cash flow aligns with the company's focus on aftermarket services and lean execution, though year-over-year comparisons reflect caution.
What the cash flow says
How to interpret the company's free cash flow beyond the headline number.
Operating cash flow increased sequentially, contributing to higher free cash flow despite a reduction in capital expenditure. The conversion from revenue to free cash flow improved versus the prior quarter but was lower than the year-ago period.
Compared to the immediately preceding quarter, revenue and free cash flow were higher and the margin improved. Relative to the same quarter one year earlier, revenue was higher but free cash flow and margin were lower.
Monitor the year-over-year decline in operating cash flow, as it was the primary factor behind the lower free cash flow relative to the prior year.