GE: Aerospace Guidance Raised Amid Momentum — While $362.5M Power Segment Scandal Still Weighs

Court: S.D. New York

Case: 1:17-cv-08457

GE Aerospace continues to build investor confidence with a bullish 2025 guidance and BofA’s upgraded outlook. However, legacy issues tied to its Power unit's 2017 performance remain unresolved in investor memory despite a recent settlement.

Stock and Analyst Highlights

• GE Aerospace raised its 2025 guidance, now projecting $11.5B in operating profit and $8.5B in free cash flow.
• Forecasts call for double-digit CAGR through 2028.
• BofA Securities lifted its price target from $230 to $310, citing GE’s operational excellence.
• GE last traded at $270.55, down slightly on the day.
• BofA: “We continue to see GE as a best-in-class performer.”

GE Aerospace agreed to a $362.5 million settlement with GE investors over allegations that the company overstated its 2017 guidance due to underperformance in its Power segment.

Timeline Overview

• October 20, 2017: GE cut its cash flow guidance, prompting a 7% stock drop.
• November 13, 2017: The company halved its dividend, sending GE down 12.5%.
• January 16, 2018: GE revealed a $6.2 billion insurance-related charge; stock declined another 13%.
• November 1, 2019: Shareholders sued GE for misleading investors about its financial health.
• January 2025: GE finalized a $362.5 million cash settlement with affected shareholders.

Allegations Include

• Overstating financial guidance tied to the Power segment’s performance.
• Concealing insurance liabilities and systemic cash flow risks.
• Failing to properly disclose financial vulnerabilities before sharp equity losses.

Investor Update

The settlement brings closure to one of GE’s most scrutinized financial periods. While aerospace leads current investor optimism, the Power unit’s past misrepresentations serve as a cautionary reminder.

You can check more information about it and file for a payout HERE.