GE Aerospace 2025 Q2 Earnings Beats Expectations as Net Income Climbs 59.6%

GE Aerospace, ranking 34th by market capitalization, reported its fiscal 2025 Q2 earnings on July 21st, 2025. The company exceeded expectations with adjusted EPS of $1.66, surpassing analysts' predictions of $1.45. GE Aerospace raised its 2025 guidance, anticipating mid-teens revenue growth and an adjusted EPS range of $5.60 to $5.80. This reflects a robust outlook, supported by strong operating performance and commercial services growth.

Revenue

GE Aerospace saw a significant revenue increase in Q2 2025, up 21.2% from the previous year, reaching $11.02 billion. Equipment sales contributed $2.84 billion, while services generated $7.31 billion. Insurance revenue added $872 million, demonstrating growth across diverse business segments.

Earnings/Net Income

GE Aerospace's earnings per share rose 56.2% to $1.89, compared to $1.21 in the previous year, reflecting ongoing earnings growth. Net income jumped 59.6% to $2.02 billion, showcasing substantial profitability improvements. Overall, EPS figures indicate a strong financial performance.

Post-Earnings Price Action Review

The strategy of acquiring GE Aerospace shares 30 days post-earnings report with an increased revenue forecast has yielded notable returns over the past three years. This strategy generated a remarkable 718.25% return, significantly surpassing the benchmark return of 85.86%. The excess return of 632.39% highlights the strategy's advantage over a simple buy-and-hold approach. With a compound annual growth rate of 52.82%, the strategy demonstrated robust growth, despite experiencing a maximum drawdown of 34.63%. Furthermore, the Sharpe ratio of 1.53 underscores the impressive risk-adjusted return, indicating substantial benefits for investors who employ this strategic approach.

CEO Commentary

H. Lawrence Culp, Jr., CEO of GE Aerospace, expressed confidence in the company’s performance, stating, “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.” He highlighted that the robust commercial services outlook and strong operating performance were key to raising guidance for 2025 and 2028. Culp noted the utilization of the FLIGHT DECK system to enhance operational efficiency and affirmed the importance of securing significant engine commitments, emphasizing positive momentum extending into the future.

Guidance

GE Aerospace anticipates adjusted revenue growth in the mid-teens for 2025, increasing from prior expectations of low double-digit growth. The company has raised its adjusted EPS guidance to a range of $5.60 to $5.80, up from $5.10 to $5.45. Additionally, operating profit is now projected between $8.2 billion and $8.5 billion. Looking ahead, GE expects approximately $11.5 billion in operating profit and $8.5 billion in free cash flow by 2028, reflecting a strong long-term growth outlook.

Additional News

GE Aerospace has announced significant developments beyond its earnings report in recent weeks. The company secured a major deal with Qatar Airways for over 400 GE9X and GEnx engines, marking the largest widebody engine deal in its history. Additionally, GE Aerospace collaborated with Kratos Defense and Security Solutions to advance propulsion systems for unmanned aerial systems, showcasing its commitment to innovation in defense technologies. The company also plans to increase capital returns to shareholders by 20% between 2024 and 2026, reinforcing its focus on delivering value through dividends and buybacks.