GE Aerospace
Raises 2025 Outlook After Beating Q2 Earnings Estimates
GE Aerospace(NYSE:GE) shares jumped 3.2%
in premarket trading on Thursday after the company announced a strong
second-quarter performance and increased its full-year forecast. The company
credited the jump to robust demand in commercial services and better
overall operations.
“The GEAerospace team delivered an excellent second quarter with free cash flow nearly
doubling and more than 20% growth in orders, revenue, operating profit, and
EPS,” said H. Lawrence Culp, Jr., GE Aerospace Chairman and CEO.
Key Q2 2025 Highlights:
| Metric | Q2 2025 | Analyst Estimate | YoY Growth |
|---|---|---|---|
| Adjusted EPS | $1.66 | $1.40 | Strong Beat |
| Revenue | $10.15 Billion | $9.54 Billion | +23% |
| Free Cash Flow | $2.1 Billion | — | +92% |
Segment Performance:
- Commercial Engines & Services:
Revenue rose 30% YoY to $8.0 billion, with services up 29%
and equipment revenue up 35%. This was the main driver
behind the strong quarter.
-
Revenue rose 30% YoY to $8.0 billion, with services up 29%
and equipment revenue up 35%. This was the main driver
behind the strong quarter.
- Defense & Propulsion Technologies:
Posted a 7% YoY revenue growth, totaling $2.6 billion.
-
Posted a 7% YoY revenue growth, totaling $2.6 billion.
Revenue rose 30% YoY to $8.0 billion, with services up 29% and equipment revenue up 35%. This was the main driver behind the strong quarter.
Posted a 7% YoY revenue growth, totaling $2.6 billion.
Updated 2025 Guidance:
GE Aerospace now expects:
| Metric | New Guidance | Previous Guidance |
|---|---|---|
| Adjusted EPS | $5.60 – $5.80 | $5.10 – $5.45 |
| Revenue Growth | Mid-teens % | Low double digits |
The upgraded
guidance matches the Wall Street consensus of $5.63 EPS.
2028 Outlook Raised:
Looking further ahead, GE Aerospace is also raising its long-term forecast:
| Metric | New Target (2028) | Previous Target |
|---|---|---|
| Operating Profit | $11.5 Billion | $10 Billion |
| Free Cash Flow | $8.5 Billion | $7 Billion |
Shareholder Returns Plan:
GE Aerospace
aims to return $24 billion to shareholders from 2024 to 2026,
which is 20% more than previously planned. After 2026, the company plans
to distribute at least 70% of its free cash flow via dividends and
share buybacks.
Why This Matters for Investors:
This quarter
proves that GE Aerospace is not just flying, it’s soaring. Strong demand
for commercial jet engines and services, rising defense contracts, and
improved operational execution are building investor confidence.
The increase
in long-term targets also reflects optimism about the future of aviation
growth, defense modernization, and sustainable profitability.
Expert Take:
“Raising both
the 2025 and 2028 outlooks shows GE Aerospace confidence in its strategic
vision. With commercial aviation rebounding and defense demand steady, they are
in a strong position for long-term gains,” said an analyst at Morgan Stanley.
Investor Note:
This article is
for informational purposes only. It is not financial advice. Always do
your own research or speak with a licensed advisor before making
investment decisions. All investments involve risk.
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