GE Aerospace Announces Second Quarter 2025 Results

Raises 2025 guidance and 2028 outlook, supported by strong operating and commercial services performance

• GE Aerospace delivered second quarter total revenue (GAAP) of $11.0B, +21%; adjusted revenue* $10.2B, +23%; continuing EPS (GAAP) of $1.87, +56%, and adjusted EPS* $1.66, +38%; and cash from operating activities (GAAP) of $2.3B, favorable; free cash flow* $2.1B, +92%
• Company raises its 2025 guidance and 2028 outlook, including achieving ~$11.5 billion of operating profit* and ~$8.5 billion of free cash flow* in 2028-both up $1.5 billion from prior 2024 Investor Day outlook
• Company to increase capital returns to shareholders from 2024 to 2026 by 20%, to ~$24 billion; expecting to sustainably return at least 70% of free cash flow* via dividend and buybacks beyond 2026-a)

CINCINNATI, OH - July 17, 2025 - GE Aerospace (NYSE:GE) announced results today for the second quarter ending June 30, 2025, and increased its 2025 financial guidance and 2028 outlook.

GE Aerospace Chairman and CEO H. Lawrence Culp, Jr., said, "The GE Aerospace team delivered an excellent second quarter with free cash flow nearly doubling and more than 20% growth in orders, revenue, operating 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."

Recent highlights include:

• Using FLIGHT DECK to drive improvements with suppliers​, remove waste in operations, and expand capacity; material input at priority supplier sites improved 10% sequentially in the second quarter, with suppliers delivering more than 95% of committed volume. This contributed to higher output year-over-year, with Commercial Engines & Services (CES) services revenue up 29% and total engine units up 45%.
• Secured new engine commitments-including with Qatar Airways for more than 400 GE9X and GEnx engines,​ the largest widebody engine deal in GE Aerospace history, and with IAG for 32 Boeing 787 aircraft powered by GEnx for British Airways.
• Completed more than 350 CFM RISE program tests with an early focus on durability, including advancing new high-pressure turbine blade cooling technology and testing full-size Open Fan blades for fatigue, endurance, load, and vibration.

Announced significant investments to upgrade hypersonics test infrastructure across U.S. sites, including wind tunnels and high-temperature materials rigs.

Financial outlook:

GE Aerospace is raising its 2025 guidance and 2028 outlook:

Results and Outlook by Reporting Segment

The following discussions and variance explanations are intended to reflect management's view of the relevant comparisons of financial results

For the quarter, orders of $11.7 billion increased 28%, with services also increasing 28%. Revenue of $8.0 billion was up 30% with services growing 29%, driven by spare parts and internal shop visit revenue. Equipment revenue grew 35%, as unit volume and price more than offset customer mix. Profit of $2.2 billion was up 33% as services volume, productivity and price more than offset investments and inflation. Margins expanded 50 basis points.

In 2025, CES now expects to deliver high-teens revenue growth and $8.0 to $8.2 billion of operating profit, representing roughly $1 billion of operating profit improvement year-over-year.

CES expects low-double-digit revenue growth through 2028-c), with profit growth from higher services volume offsetting headwinds from GE9X costs and research and development spending.

For the quarter, orders of $2.9 billion increased 24% year-over-year. Revenue of $2.6 billion grew 7%. Defense & Systems revenue grew 6% as higher units and price more than offset engine mix and services. Propulsion & Additive Technologies revenue grew 9% with growth across all businesses. Profit of $362 million was up 5% as volume, productivity and price more than offset self-funding investments and inflation. Margins were down (20) basis points.

In 2025, DPT continues to expect to deliver mid-single-digit to high-single-digit revenue growth and $1.1 to $1.3 billion of operating profit.

DPT affirmed mid-single-digit revenue growth through 2028-c), with profit growth from higher volume, improving mix, and productivity.

Financial Measures That Supplement GAAP

We believe that presenting non-GAAP financial measures provides management and investors useful measures to evaluate performance and trends of the total company and its businesses. This includes adjustments in recent periods to GAAP financial measures to increase period-to-period comparability following actions to strengthen our overall financial position and how we manage our business.

In addition, management recognizes that certain non-GAAP terms may be interpreted differently by other companies under different circumstances. In various sections of this report we have made reference to the following non-GAAP financial measures in describing our (1) revenue, specifically Adjusted revenue, (2) profit, specifically Operating profit and Operating profit margin; Adjusted net income (loss) and Adjusted earnings (loss) per share (EPS), (3) cash flows, specifically free cash flow (FCF), and (4) guidance and outlook, specifically 2025 and 2028 Operating profit, 2025 and 2028 Adjusted EPS and 2025 and 2028 FCF.

The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures follow. Certain columns, rows or percentages within these reconciliations may not add or recalculate due to the use of rounded numbers. Totals and percentages presented are calculated from the underlying numbers in millions.

Beginning in the first quarter of 2025, we changed the terminology used to report our GAAP earnings from "Earnings" to "Net income" and our non-GAAP earnings from "Adjusted earnings" to "Adjusted net income." The change in terminology does not impact the amounts reported in the financial statements.

2025 GUIDANCE AND 2028 OUTLOOK: 2025 AND 2028 OPERATING PROFIT (NON-GAAP)

We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for Operating profit* in 2025 and 2028 without unreasonable effort due to the uncertainty of timing of any gains or losses related to acquisitions & dispositions and the timing and magnitude of restructuring expenses. Although we have attempted to estimate the amount of gains and restructuring charges for the purpose of explaining the probable significance of these components, this calculation involves a number of unknown variables, resulting in a GAAP range that we believe is too large and variable to be meaningful.

2025 GUIDANCE AND 2028 OUTLOOK: 2025 AND 2028 ADJUSTED EPS (NON-GAAP)

We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for Adjusted EPS* in 2025 and 2028 without unreasonable effort due to the uncertainty of timing of any gains or losses related to acquisitions & dispositions and the timing and magnitude of restructuring expenses. Although we have attempted to estimate the amount of gains and restructuring charges for the purpose of explaining the probable significance of these components, this calculation involves a number of unknown variables, resulting in a GAAP range that we believe is too large and variable to be meaningful.

2025 GUIDANCE AND 2028 OUTLOOK: 2025 AND 2028 FCF (NON-GAAP)

We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for free cash flow* in 2025 and 2028 without unreasonable effort due to the uncertainty of timing for separation and restructuring related cash expenditures.

Caution Concerning Forward Looking Statements:

This release and certain of our public communications and filings we make with the U.S. Securities and Exchange Commission (SEC) may contain statements related to future, not past, events. These forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," "estimate," "forecast," "target," "preliminary," "range" or similar expressions. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the impacts of macroeconomic and market conditions and volatility on our business operations, financial results and financial position; conditions affecting the aerospace and defense industry, including our customers and suppliers; our expected financial performance, including cash flows, revenue, margins, net income and earnings per share; planned and potential transactions; our credit ratings and outlooks; our funding and liquidity; our cost structures and plans to reduce costs; restructuring, impairment or other financial charges; or tax rates.

For us, particular areas where risks or uncertainties could cause our actual results to be materially different than those expressed in our forward-looking statements include:

• changes in macroeconomic and market conditions and market volatility (including risks related to recession, inflation, supply chain constraints or disruptions, interest rates, values of financial assets, oil, jet fuel and other commodity prices and exchange rates), and the impact of such changes and volatility on our business operations and financial results;
• global economic trends, competition and geopolitical risks, including evolving impacts from tariffs, sanctions or other trade tensions between the U.S. and other countries (including implementation of new tariffs and retaliatory measures); demand or supply shocks from events such as a major terrorist attack, war (including the ongoing conflict between Russia and Ukraine and conflict in the Middle East), natural disasters or actual or threatened public health pandemics or other emergencies;
• market or other developments that may affect demand or the financial strength and performance of airframers, airlines, suppliers and other key aerospace and defense industry participants, such as demand for air travel, supply chain or other production constraints, shifts in U.S. or foreign government defense programs and other industry dynamics;
• pricing, cost, volume and the timing of sales, deliveries, investment and production by us and our customers, suppliers or other industry participants;
• the impact of actual or potential safety or quality issues or failures of our products or third-party products with which our products are integrated, including design, production, performance, durability or other issues, and related costs and reputational effects;
• operational execution on our business plans, including our performance amidst market growth and ramping newer product platforms, meeting delivery and other contractual obligations, improving turnaround times in our services businesses and reducing costs over time;
• the amount and timing of our income and cash flows, which may be impacted by macroeconomic, customer, supplier, competitive, contractual, financial or accounting (including changes in estimates) and other dynamics and conditions;
• our capital allocation plans, including the timing and amount of dividends, share repurchases, acquisitions, organic investments and other priorities;
• our decisions about investments in research and development or new products, services and platforms, and our ability to launch new products in a cost-effective manner, as well as technology developments and other dynamics that could shift the demand or competitive landscape for our products and services;
• our success in executing planned and potential transactions, including the timing for such transactions, the ability to satisfy any applicable pre-conditions and the expected benefits;
• downgrades of our credit ratings or ratings outlooks, or changes in rating application or methodology, and the related impact on our funding profile, costs, liquidity and competitive position;
• capital or liquidity needs associated with our run-off insurance operations or mortgage portfolio in Poland (Bank BPH), the amount and timing of any required future capital contributions and any strategic options that we may consider;
• changes in law, regulation or policy that may affect our businesses, such as trade policy and tariffs; government defense priorities or budgets; regulation, incentives and emissions offsetting or trading regimes related to climate change; and the effects of tax law changes or audits;
• the impact of regulation; government investigations; regulatory, commercial and legal proceedings or disputes; environmental, health and safety matters; or other legal compliance risks, including the impact of shareholder and related lawsuits, Bank BPH and other proceedings that are described in our SEC filings;
• the impact related to information technology, cybersecurity or data security breaches at GE Aerospace or third parties; and
• the other factors that are described in the "Risk Factors" section in our Annual Report on Form 10-K for the year ended December 31, 2024, as such descriptions may be updated or amended in future reports we file with the SEC.

These or other uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements. This document includes certain forward-looking projected financial information that is based on current estimates and forecasts. Actual results could differ materially.

Additional Information

CFM International is a 50/50 JV that produces CFM56 and LEAP engine families. RISE is a program of CFM International. CFM RISE is a registered trademark. CFM RISE is a technology demonstrator program, not a product for sale. Engine Alliance is a 50/50 JV that produces the GP7200 engine.

GE Aerospace's Investor Relations website at www.geaerospace.com/investor-relations, as well as GE Aerospace's LinkedIn and other social media accounts, contain a significant amount of information about GE Aerospace, including financial and other information for investors. GE Aerospace encourages investors to visit these websites from time to time, as information is updated and new information is posted.

Additional financial information can be found on the Company's website at: www.geaerospace.com/investor-relations under Events and Reports.

Conference Call and Webcast

GE Aerospace will discuss its results during its investor conference call today starting at 7:30 a.m. ET. The conference call will be broadcast live via webcast, and the webcast and accompanying slide presentation containing financial information can be accessed by visiting the Events and Reports page on GE Aerospace's website at: www.geaerospace.com/investor-relations. An archived version of the webcast will be available on the website after the call.

About GE Aerospace

GE Aerospace is a global aerospace propulsion, services, and systems leader with an installed base of approximately 49,000 commercial and 29,000 military aircraft engines-d). With a global team of approximately 53,000 employees building on more than a century of innovation and learning, GE Aerospace is committed to inventing the future of flight, lifting people up, and bringing them home safely. Learn more about how GE Aerospace and its partners are defining flight for today, tomorrow and the future at https://www.geaerospace.com.