GE Aerospace (NYSE:GE) shares traded higher in Thursday’s session after the company reported better-than-expected second-quarter 2025 results.
GE posted adjusted revenue of $10.2 billion, up 23% year over year (YoY), and GAAP revenue of $11.02 billion, a 21% increase, both topping the consensus estimate of $9.57 billion.
Commercial Engines & Services (CES) revenue was $7.99 billion (+30% YoY), and Defense & Propulsion Technologies revenue totaled $2.56 billion (+7% YoY).
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For the quarter, GE Aerospace reported $11.7 billion in Commercial Engines & Services orders, up 28%, with services also rising 28%, while Defense & Propulsion Technologies orders climbed 24% year over year to $2.9 billion.
Adjusted EPS for the quarter was $1.66 (+38% YoY), beating the consensus of $1.41.
GE Aerospace’s adjusted operating profit margin contracted 10 bps to 23%, with an adjusted operating profit of 2.34 billion, up 23% YoY in the quarter.
GE Aerospace generated $2.3 billion in operating cash and $2.1 billion in free cash flow, up 92% year over year.
As of June 30, 2025, cash and cash equivalents stood at $10.86 billion.
During the quarter, GE Aerospace improved supplier performance using FLIGHT DECK, boosting material input by 10% sequentially and achieving over 95% delivery compliance, driving a 29% rise in CES services revenue and a 45% jump in engine units. It secured record engine deals with Qatar Airways and IAG, completed 350+ CFM RISE tests, and announced major U.S. hypersonics infrastructure upgrades.
GE Aerospace Chairman and CEO H. Lawrence Culp, Jr., said the team delivered a strong second quarter, with free cash flow nearly doubling and over 20% growth across orders, revenue, profit, and EPS.
“We are raising our 2025 guidance and 2028 outlook, with our operating performance and robust commercial services outlook underpinning our higher revenue, earnings, and cash growth expectations. Our team is using FLIGHT DECK to improve safety, quality, delivery and cost, always in that order, as we strive to provide unrivaled customer service and deliver on our roughly $175 billion backlog,” he added.
2025 Guidance
GE Aerospace now expects adjusted revenue growth in mid-teens (prior low double digits) and adjusted EPS of $5.60 to $5.80 (prior $5.10 to $5.45) vs. the $5.57 consensus.
The company expects adjusted operating profit of $8.2 to $8.5 billion (prior $7.8 billion to $8.2 billion) and adjusted Free Cash Flow of $6.5 to $6.9 billion (prior $6.3 billion to $6.8 billion).
The company also plans to boost capital returns by 20% to ~$24 billion through 2026 and aims to return at least 70% of free cash flow to shareholders beyond that.
GE Aerospace raised its 2028 outlook, targeting ~$11.5 billion in operating profit, ~$8.5 billion in free cash flow with ~100% conversion, and adjusted EPS of ~$8.40. The company expects double-digit revenue growth from 2024 to 2028, reflecting strong execution and long-term confidence.
GE Aerospace shares have climbed nearly 60% year to date, reflecting strong market momentum.
Price Action: GE shares are trading higher by 2.03% to $271.59 premarket at last check Thursday.
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