GE Expects Strong Growth Despite Tariff Challenges: $500M Impact by 2025

GE reports strong growth despite tariff challenges, with a $500 million estimated impact by 2025. The company expects significant margin expansion from 2025 to 2028, driven by services growth, and forecasts operating profits to grow by more than 10% annually through 2028. GE's backlog exceeds $170 billion, with commercial services backlog at over $140 billion. The company guides revenue growth at low double digits, profit between $7.8 billion and $8.2 billion, EPS $5.10 to $5.45, and free cash flow between $6.3 billion and $6.8 billion for 2025.

General Electric Co.'s (GE) aerospace division, GE Aerospace, has reported robust second-quarter results, bolstering its 2025 financial guidance. The company's adjusted earnings per share (EPS) for 2025 are now expected to be between $5.60 and $5.80, up from the previous range of no more than $5.45. This increase reflects a significant rebound in aviation market demand and the company's ability to navigate the challenges posed by global trade tensions [1].

The quarterly results show that GE Aerospace's commercial business experienced a 30% jump in revenue, driven by a surge in orders. Notably, the company secured its largest-ever widebody engine deal, selling more than 400 engines to Qatar Airways. This deal underscores the company's resilience in the face of market volatility [1].

Despite the impact of tariffs, which could drive up costs and disrupt supply chains, GE Aerospace has been proactive in mitigating these effects. CEO Larry Culp has been vocal in his discussions with the administration, emphasizing the benefits of free trade and the industry's trade surplus. The company has also implemented cost controls and price increases to offset tariff impacts [1].

For the second quarter, GE Aerospace reported adjusted earnings of $1.66 per share, surpassing analyst estimates. The company's adjusted revenue was $10.2 billion, with revenue growth of 23% compared to the same period last year. The company also announced that it had raised its 2025 guidance and 2028 outlook, with expectations for operating profit and free cash flow growth [2].

Looking ahead, GE Aerospace expects significant margin expansion from 2025 to 2028, driven by services growth. The company forecasts operating profits to grow by more than 10% annually through 2028. GE's backlog exceeds $170 billion, with commercial services backlog at over $140 billion. The company guides revenue growth at low double digits, profit between $7.8 billion and $8.2 billion, EPS $5.10 to $5.45, and free cash flow between $6.3 billion and $6.8 billion for 2025 [2].

GE Aerospace's stock has soared 60% this year, reflecting investor confidence in the company's ability to navigate market challenges and capitalize on growth opportunities.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-17/ge-aerospace-raises-full-year-guidance-on-aviation-rebound
[2] https://www.geaerospace.com/news/press-releases/ge-aerospace-announces-second-quarter-2025-results