LAS VEGAS - GE Aerospace and Lilium, an electric aircraft manufacturer, have announced a partnership to bolster safety standards for the emerging electric Vertical Take-Off and Landing (eVTOL) aircraft industry. The collaboration aims to integrate GE's Event Measurement System (EMS) with Lilium's flight data analytics to establish robust safety protocols for eVTOL operations.
The EMS platform, already utilized by over 60 airlines and more than 500 business jet operators, will be a key component of Lilium's aftermarket offering, POWER-ON™, which provides a suite of digital services to support the daily operations of Lilium Jet operators with critical insights and actionable data.
Lilium's eVTOLs are currently being tested at sites across the US, Europe, and Asia, with first customer deliveries of the Lilium Jet anticipated in 2026. The market for eVTOLs is projected to reach $1 trillion by 2040, as per JP Morgan estimates.
Andrew Coleman, General Manager of GE Aerospace's Software as a Service (SaaS) Group, emphasized the importance of setting high safety standards and regulations for eVTOLs. Dominique Decard, VP of Fleet Operations, Support, and Services at Lilium, expressed enthusiasm for the partnership, highlighting the significance of fleetwide flight data monitoring as part of their aftermarket services.
The partnership will focus on developing an OEM-level Flight Data Monitoring (FDM) or Flight Operations Quality Assurance (FOQA) program, designed to monitor eVTOL safety on a fleetwide scale. The collaboration will also explore how the integration of Lilium's Fleet Optimizer and GE's EMS can enhance the efficiency and reliability of the aircraft.
Lilium, listed on NASDAQ under the ticker LILM, is committed to creating a sustainable and accessible mode of high-speed, regional transportation with its all-electric Lilium Jet. GE Aerospace, traded on the NYSE as GE, is a leader in aerospace propulsion, services, and systems, with a significant installed base of commercial and military aircraft engines.
The information for this article is based on a press release statement.
In other recent news, GE Aerospace has witnessed significant financial growth, with a 28% increase in orders, a 6% rise in revenue, and a 14% surge in operating profit. The company's adjusted earnings per share soared by 25%, and it generated a substantial $1.8 billion in free cash flow. As a result, GE Aerospace has increased its full-year operating profit guidance to between $6.7 billion and $6.9 billion.
Despite facing supply chain issues and a 4% drop in total engine deliveries, GE Aerospace remains optimistic. The company has seen a 29% surge in orders and a 10% growth in services revenue in the Commercial Engines & Services segment. Furthermore, GE Aerospace is investing $1 billion in MRO to enhance aftermarket capacity and is opening a new LEAP MRO shop in Poland.
Analysts from RBC Capital, Wells Fargo, and UBS have adjusted their price targets for GE Aerospace, reflecting the company's recent performance. RBC Capital has lowered its price target to $200 but maintains an Outperform rating, while Wells Fargo has increased its target to $210, and UBS has raised its target to $230. These adjustments underscore the analysts' confidence in GE Aerospace's future performance despite ongoing challenges.
InvestingPro Insights
As GE Aerospace ventures into the promising eVTOL market with Lilium, it's worth examining GE's current financial position and market performance. According to InvestingPro data, GE boasts a substantial market capitalization of $191.2 billion, reflecting its significant presence in the aerospace industry.
GE's stock has shown remarkable strength, with a 108.78% total return over the past year. This impressive performance aligns with the company's strategic moves in emerging technologies like eVTOLs. However, investors should note that GE is trading at a relatively high P/E ratio of 37.8, suggesting high growth expectations are already priced into the stock.
InvestingPro Tips highlight GE's position as a prominent player in the Aerospace & Defense industry, which is particularly relevant given its partnership with Lilium. The company has also maintained dividend payments for 54 consecutive years, demonstrating financial stability that could support long-term investments in innovative projects like eVTOL technology.
It's worth noting that analysts anticipate a sales decline for GE in the current year, which could impact the company's ability to invest in new ventures. However, GE's strong return over the last five years and its profitable status over the last twelve months indicate a solid foundation for pursuing growth opportunities in the eVTOL market.
For investors seeking a deeper understanding of GE's potential in the eVTOL sector and its overall financial health, InvestingPro offers 13 additional tips that could provide valuable insights for investment decisions.
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