GE Aerospace (NYSE:GE) on Tuesday, soared past Wall Street expectations in the third quarter of 2025, fueled by strong demand, higher output, and a surge in engine deliveries.
- GE shares are testing new highs. Get the complete picture here
The aerospace giant also lifted its full-year outlook across all metrics, signaling continued momentum heading into the year’s final stretch.
GE Aerospace reported total orders of $12.8 billion, representing a 2% year-over-year increase. GAAP revenue climbed 24% year-over-year to $12.18 billion, surpassing the $10.40 billion analyst estimate. Adjusted revenue grew 26% to $11.3 billion.
GAAP profit rose 33% to $2.5 billion, and operating profit increased 26% to $2.3 billion. GAAP profit margin expanded 150 basis points to 20.7%, and the operating profit margin held steady at 20.3%.
Continuing GAAP earnings per share were $2.04, up 31%, while adjusted EPS jumped 44% to $1.66, topping the $1.44 consensus.
Segments
Commercial Engines & Services revenue climbed 27% to $8.9 billion, driven by a 28% increase in services and a 22% rise in equipment sales.
Profit rose 35% to $2.4 billion, with margins improving 170 basis points to 27.4%.
Deliveries surged 33% year over year, led by record LEAP engine shipments up 40%. The segment also secured key engine wins from Korean Air and Cathay Pacific.
Defense & Propulsion Technologies revenue advanced 26% to $2.8 billion, while profit surged 75% to $386 million.
The unit’s operating margin expanded 380 basis points to 13.6%, supported by stronger engine volumes, a favorable customer mix, and improved pricing across its portfolio.
Management Commentary
Chairman and CEO H. Lawrence Culp, Jr. said, “FLIGHT DECK, our proprietary lean operating model, is guided by a customer-driven approach to continuous improvement, where daily progress compounds to drive meaningful results. We are seeing that materialize this quarter with strong services and engine output for our customers. Our continued investments in LEAP durability and the future of flight will help us build on this momentum and position us for growth.”
GE Aerospace generated $2.6 billion in operating cash flow and $2.4 billion in free cash flow for the quarter, achieving over 130% conversion. The company continued investing in hybrid electric propulsion, advanced testing for the GE9X and CFM RISE programs, and other next-generation flight technologies.
GE Aerospace said material input from priority suppliers rose over 35% year-over-year, with supplier performance above 95% of commitments. Its 78,000-engine installed base—spanning 49,000 commercial and 29,000 military units—has logged more than 2.3 billion flight hours.
GE Aerospace closed the third quarter of 2025 with a solid balance sheet, holding $12.5 billion in cash and $20.8 billion in total borrowings, including $2.0 billion of new debt issued to refinance maturities.
The company reported about 1.07 billion diluted shares outstanding and plans to return roughly $8.1 billion to shareholders in 2025 through $7 billion in buybacks and $1.1 billion in dividends, up 30% year over year.
Outlook
For full-year 2025, GE Aerospace raised its adjusted EPS outlook to $6.00–$6.20, up from $5.60–$5.80 and ahead of the $5.90 analyst estimate.
It now projects adjusted revenue growth in the high teens, operating profit of $8.65 billion—$8.85 billion, and free cash flow of $7.1 billion—$7.3 billion.
Price Action: GE Aerospace shares were up 2.75% at $311.00 during premarket trading on Tuesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
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