GE Aerospace Stock Soars 55% YTD: A Buy Before Q2 Earnings?

GE Aerospace is expected to announce its Q2 2025 financials on July 17, with shares up 55% YTD. The company delivered strong Q1 results, with a 12% increase in orders, an 11% rise in revenue, and a 38% profit increase. The commercial backlog of $140 billion provides a solid foundation for future growth, with the Commercial Engines & Services segment expected to continue its strong performance.

GE Aerospace (GE) is poised to release its Q2 2025 financials on Thursday, July 17, following a robust first quarter that saw shares surge more than 55% year-to-date (YTD). The company's strong performance in Q1, highlighted by a 12% increase in orders, an 11% rise in revenue, and a 38% profit increase, has investors and analysts alike anticipating another impressive quarter.

The commercial backlog of approximately $140 billion provides a solid foundation for future growth. The Commercial Engines & Services (CES) segment, in particular, is expected to continue its strong performance. Orders in the CES segment surged 31% year-over-year in Q1, while revenue climbed 17%, translating to a 35% increase in total operating profit. Recent significant commitments from top global carriers, such as Japan’s All Nippon Airways (ANA) and Malaysia Aviation Group, further bolster the order book.

On the defense side, the Defense & Propulsion Technologies (DPT) unit also demonstrated strong performance, with revenue rising 5% and profit surging 16%. The company secured a significant contract from the U.S. Air Force for its F110 engines, worth up to $5 billion, reflecting the continued demand for advanced military propulsion technologies.

Analysts are optimistic about GE Aerospace's earnings potential for Q2. They expect the company to post earnings of $1.43 per share, representing a 19.2% increase over the $1.20 reported in the same period last year. GE Aerospace has a history of outperforming expectations, having beaten analysts' earnings estimates for four consecutive quarters. The company's "Strong Buy" consensus rating reflects the bullish sentiment among analysts.

The company's stock performance has been robust, with shares trading up $2.92 on Friday, hitting $255.49. The stock has a market capitalization of $272.45 billion, a PE ratio of 39.73, and a beta of 1.37. The company has a current ratio of 1.08, a quick ratio of 0.77, and a debt-to-equity ratio of 0.90.

Institutional investors and insiders have been active in the stock. Revolve Wealth Partners LLC raised its stake in GE Aerospace by 7.1% in the fourth quarter, while insiders such as VP Robert M. Giglietti and SVP Mohamed Ali sold shares in recent transactions. The stock is currently owned by hedge funds and other institutional investors, who hold 74.77% of the shares.

Analysts have provided a range of ratings and price targets for GE Aerospace. Northcoast Research downgraded the stock from a "buy" to a "neutral" rating, while Royal Bank of Canada, UBS Group, Wells Fargo & Company, and Citigroup have set target prices ranging from $207.00 to $275.00. The average rating is "Moderate Buy" with a consensus price target of $223.75.

As GE Aerospace prepares to release its Q2 2025 financials, investors will be closely watching for signs of continued growth and profitability. The company's strong performance in Q1 and the robust order book suggest that the company is well-positioned for another successful quarter.

References:
[1] https://www.barchart.com/story/news/33387749/up-55-ytd-is-ge-aerospace-stock-a-buy-before-july-17
[2] https://www.marketbeat.com/instant-alerts/ge-aerospace-ge-expected-to-announce-earnings-on-thursday-2025-07-10/