GE Aerospace set on $10B in profits by 2028 in new forecast
GE Aerospace — the aviation wing of General Electric (GE) — expects operating profits to reach $10 billion by 2028 and is planning to issue a share buyback program and issue dividends to investors. Yahoo Finance LIve reviews GE Aerospace's prosperous outlook.
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Editor's note: This article was written by Luke Carberry Mogan.
Video Transcript
- General Electric's Aerospace Division, why are we talking about them? They made some news today. They are going to say operating earnings there now expected to hit $10 billion by 2028.
Let's put that in some perspective. It could be about $6.5 billion this year. And the company now saying investors, they can now expect a check in the mail. We've got capital return news. Company says indeed, it's going to greenlight $15 billion in stock buybacks and-- this is newsworthy, Julie-- will resume paying a dividend. And investors, obviously, always appreciate that news. Stock pops about 4%.
- Well, and always appreciate it, but appreciate it for General Electric in particular. Because for years, one of the reasons you held GE was because it paid a dividend. And then, they got rid of the dividend when they were remaking the business. So even though it's not going to be a huge one here, 30% of net income is what they're pegging it at for the future. Still, it is a sign that the phoenix is finally rising from the ashes, so to speak.
I mean, it feels like forever that we've been talking about the spin-off of what the new GE'S going to be. You've got GE Healthcare that's already spun off, but now you're going to have Aerospace and Vernova, the sort of energy business here. That's supposed to finally happen on April 2. I guess it's only been ongoing since 2021, but that kind of feels like a long time.
- It does feel like a long time. You know, listen, you've got a lot of I's to dot, a lot of T's to cross, Julie. But you have a date-- early April.
- You do, exactly.
