GE Aerospace Raises 2025 Outlook on Strong Q2 Earnings

GE Aerospace reported Q2 2025 revenue of $10.2bn, up 23% YoY, and adjusted EPS of $1.66, beating the consensus of $1.41. Commercial Engines & Services revenue rose 30% YoY to $7.99bn, while Defense & Propulsion Technologies revenue increased 7% YoY to $2.56bn. The company raised its 2025 guidance, expecting adjusted revenue growth in mid-teens and adjusted EPS of $5.60 to $5.80. GE Aerospace also raised its 2028 outlook, targeting $11.5bn in operating profit and $8.5bn in free cash flow.

GE Aerospace (GE) delivered a robust performance in its Q2 2025 earnings report, surpassing market expectations and raising its outlook for the year. The company reported a non-GAAP earnings per share (EPS) of $1.66, which exceeded analyst forecasts by $0.23. Revenue for the quarter reached $10.2 billion, marking a 23% year-over-year (YoY) increase. This strong performance was driven by significant growth in both the Commercial Engines & Services and Defense & Propulsion Technologies segments [1].

The Commercial Engines & Services segment saw a 30% YoY increase in revenue to $7.99 billion, while the Defense & Propulsion Technologies segment posted a 7% YoY increase to $2.56 billion. These results were supported by higher shop visit work scope, increased spare parts sales, and price increases in the Commercial Engines & Services segment. The Defense & Propulsion Technologies segment benefited from strong momentum in the defense and propulsion technologies business [2].

GE Aerospace also raised its 2025 guidance, projecting mid-teens revenue growth and adjusted EPS of $5.60 to $5.80. Additionally, the company's 2028 outlook was elevated, targeting $11.5 billion in operating profit and $8.5 billion in free cash flow [1].

Wall Street analysts have responded positively to these results. The average target price for GE Aerospace within the next year is estimated to be $261.14, with a high estimate of $300.00 and a low estimate of $196.11. This indicates an average downside of 1.89% from the current market price of $266.18. Moreover, 20 brokerage firms collectively maintain a consensus recommendation for GE Aerospace at 1.9, which signals an "Outperform" rating [1].

However, it is essential to note that while GE Aerospace's short-term performance is impressive, its long-term revenue growth rate has been mediocre at 6.5% compounded annual growth rate over the last five years. Nevertheless, the company's recent two-year annualized revenue growth of 15.2% suggests an acceleration in demand [2].

In conclusion, GE Aerospace's Q2 2025 results demonstrate strong performance across multiple segments. The company's elevated guidance and positive analyst responses indicate that investors should closely monitor GE Aerospace's progress in the coming quarters.

References:
[1] https://www.gurufocus.com/news/2983744/ge-aerospace-ge-surpasses-q2-expectations-and-boosts-2025-guidance
[2] https://finance.yahoo.com/news/ge-aerospace-q2-earnings-revenues-144400184.html