GE Aerospace eased from its record high Thursday following its second-quarter report.
Ohio-based GE Aerospace reported a 38% increase in earnings to $1.66 per share adjusted. Total revenue jumped 21% to $11.02 billion.
FactSet analysts expected earnings of $1.43 per share on almost 17% revenue growth to $9.59 billion.
Commercial engines revenue grew 30% to $7.99 billion, compared to estimates for $7.37 billion. Orders for commercial engines were up 28% at $11.7 billion. GE Aerospace said it now expects its commercial segment to deliver high-teens revenue growth for the year, with $8 billion to $8.2 billion in operating profit.
Defense and propulsion technologies revenue rose 7% to $2.56 billion, just below FactSet views for $2.58 billion. Orders for the defense and propulsion segment surged 24% to $2.9 billion. GE Aerospace expects the unit to deliver mid-single-digit to high-single-digit revenue growth for 2025. The company anticipates defense and propulsion's operating profit for the year to range from $1.1 billion to $1.3 billion.
Guidance Hike
GE Aerospace lifted its 2025 outlook with results. The manufacturer now sees adjusted revenue to grow in the midteens, compared to its prior forecast for low-double-digit growth. Operating profit should range from $8.2 billion to $8.5 billion, management says, up from its April estimate for $7.8 billion to $8.2 billion.
GE Aerospace raised its forecast earnings range to between $5.60 and $5.80 per share adjusted. The company previously expected earnings from $5.10 per share to $5.45 per share.
Free cash flow for 2025 is seen ranging from $6.5 billion to $6.9 billion, up slightly from it April forecast for $6.3 billion to $6.8 billion.
FactSet expects GE's 2025 earnings increase 22% to $5.63 per share adjusted on 13% revenue growth to $39.73 billion. Analysts expect $6.7 billion in free cash flow for the year.
The company also raised its long-term outlook through 2028. GE Aerospace now expects a double-digit compound annual growth rate for revenue from 2024 through 2028. It previously expected high-single-digit compound annual growth rate from 2025 to 2028. The manufacturer raised its 2028 operating profit to around $11.5 billion from $10 billion.
Earnings for 2028 are expected to hit about $8.40 per share adjusted. GE Aerospace did not provide a long-term earnings outlook with its prior release. The company forecasts free cash flow to reach around $8.5 billion for 2028.
GE Aerospace earlier this month resumed jet engine shipments to China after the U.S. lifted restrictions on exports amid trade disputes.
Air India Crash Investigation Narrows
Preliminary findings from the investigation into the June 12 Air India crash determined that the aircraft's fuel supply to the engines appears to have been cut off. India's Aircraft Investigation Bureau found that the fuel control switches in the cockpit of the Boeing 787 had been flipped during ascent from "RUN" to "CUTOFF", causing the engines to shut down.
Audio recordings indicate that in the cockpit, there was confusion between the pilots over the handling of the switches, according to reports. The fuel switches were quickly returned to the correct position. The engines were in the process of powering back up when the crash occurred.
The FAA and Boeing privately issued notices that the fuel switch locks on Boeing planes are safe, Reuters reported. The findings are also positive for GE Aerospace, which provided the GEnx-1B engines for the 787.
GE Stock Performance
Shares of GE Aerospace eased 2.2% Thursday, after climbing modestly in premarket action.
GE stock is up 22% from a cup base breakout in early May and is trading near its record high from Wednesday.
Shares have rallied almost 56% so far this year.
GE's sister spin off from General electrical, GE Vernova, received a price target hike from Bank of America Thursday morning.
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