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GE Aerospace (NYSE: GE) has reported impressive financial results for the second quarter of 2025, surpassing expectations and prompting the company to raise its guidance for the year and beyond. The results highlight significant growth across key metrics, driven by robust performance in both commercial and defense segments.
 

GE Aerospace Reports Better-than-Expected Results for Second-Quarter 2025

In the second quarter of 2025, GE Aerospace delivered outstanding financial results that exceeded market expectations. The company reported a total revenue of $11.0 billion, marking a 21% increase from the previous year. Adjusted revenue came in at $10.2 billion, up 23%. These figures surpassed the expected revenue of $9.65 billion. The company’s continuing EPS (GAAP) was $1.87, a 56% rise, while the adjusted EPS was $1.66, reflecting a 38% increase. These earnings figures exceeded the anticipated EPS of $1.43, demonstrating the company’s strong financial performance.

GE Aerospace’s robust performance was driven by significant growth in its Commercial Engines & Services (CES) segment, which saw a 30% increase in revenue to $8.0 billion. This growth was fueled by a 29% rise in services revenue and a 35% increase in equipment revenue. The CES segment’s operating profit also rose by 33% to $2.2 billion, with margins expanding by 50 basis points. In comparison, the Defense & Propulsion Technologies (DPT) segment reported a 7% increase in revenue to $2.6 billion, with a 5% rise in operating profit to $362 million.

Overall, GE Aerospace’s performance in the second quarter of 2025 demonstrates its ability to exceed expectations and capitalize on market opportunities. The company’s strategic initiatives, including the use of FLIGHT DECK to enhance operational efficiencies, have contributed to its impressive financial results. The strong performance across both commercial and defense segments highlights the company’s well-rounded growth strategy, positioning it for continued success in the future.
 

GE Aerospace Revises Financial Guidance for 2025 and Outlook for 2028

As a result of its strong performance in the second quarter, GE Aerospace has revised its financial guidance for 2025 and its outlook for 2028. The company now expects adjusted revenue growth to reach mid-teens for 2025, up from the previous guidance of low-double-digits. For 2028, GE Aerospace anticipates a double-digit compound annual growth rate from 2024 to 2028, reflecting its confidence in sustained revenue expansion.

The company’s operating profit guidance for 2025 has been raised to a range of $8.2 billion to $8.5 billion, compared to the prior range of $7.8 billion to $8.2 billion. By 2028, GE Aerospace aims to achieve an operating profit of approximately $11.5 billion, up $1.5 billion from the previous outlook. This upward revision is supported by the company’s strong operating performance and favorable market conditions.

GE Aerospace also increased its free cash flow guidance for 2025 to a range of $6.5 billion to $6.9 billion, with a conversion rate of over 100%. The company expects to generate around $8.5 billion in free cash flow by 2028. Additionally, GE Aerospace plans to enhance capital returns to shareholders, with a 20% increase in returns from 2024 to 2026, totaling approximately $24 billion.

The company intends to return at least 70% of free cash flow via dividends and buybacks beyond 2026. These strategic initiatives underscore GE Aerospace’s commitment to delivering value to shareholders while maintaining strong financial performance.

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