GE Aerospace reversed early gains to trade down 0.78% on Thursday after reporting stronger-than-expected second-quarter results and raising both its full-year 2025 guidance and long-term 2028 outlook.
The airplane engine manufacturer, spun off from General Electric in 2024, continues to benefit from strong demand in its commercial engines and services business.
For the second quarter ending June 30, 2025, GE Aerospace posted total revenue of $11.0 billion, marking a 21% year-over-year increase.
Adjusted revenue rose 23% to $10.2 billion. Earnings also exceeded expectations, with adjusted earnings per share (EPS) coming in at $1.66, a 38% jump from the previous year.
Continuing EPS reached $1.87, up 56% year-over-year.
The company’s performance was led by a 30% increase in revenue from its commercial engines and services segment, driven by strong demand for new engines, spare parts, and repairs of older engines.
Cash from operating activities grew to $2.3 billion, while free cash flow nearly doubled to $2.1 billion, up 92% from the prior year.
Guidance raised for 2025 and long-term targets
In light of its strong performance, GE Aerospace revised its 2025 financial projections upward.
Adjusted revenue is now expected to grow in the mid-teens range, compared to the previous outlook of low double-digit growth.
Adjusted EPS guidance has also been raised to a range of $5.60 to $5.80, up from the earlier range of $5.10 to $5.45.
The company has also boosted its free cash flow guidance for 2025 to between $6.5 billion and $6.9 billion, with a conversion rate of over 100%.
Operating profit is now projected to be between $8.2 billion and $8.5 billion for the year.
Looking further ahead, GE Aerospace shared updated long-term targets through 2028.
The company expects to generate approximately $11.5 billion in operating profit and $8.5 billion in free cash flow by then.
Adjusted EPS is projected to reach around $8.40, supported by a compound annual growth rate in adjusted revenue of double digits from 2024 to 2028.
Strategic developments and CEO outlook
GE Aerospace attributed its improved outlook to several operational and strategic initiatives.
The company highlighted the continued utilization of its FLIGHT DECK system to enhance efficiency across supply chains, with a 10% sequential improvement in material input at key supplier sites.
It also secured major engine deals, including a historic agreement with Qatar Airways for over 400 GE9X and GEnx engines, and a contract with IAG for 32 Boeing 787 aircraft engines for British Airways.
In technology, GE Aerospace completed over 350 tests for its CFM RISE program and is investing in upgrading hypersonics testing infrastructure at U.S. facilities.
CEO H. Lawrence Culp, Jr. praised the quarter’s results, noting the company achieved “more than 20% growth in orders, revenue, operating profit, and EPS.”
He added that the raised 2025 and 2028 guidance is underpinned by strong operating performance and a positive commercial services outlook.
GE Aerospace also plans to increase capital returns to shareholders by 20% between 2024 and 2026 and aims to return at least 70% of free cash flow via dividends and buybacks beyond 2026.
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