GE Aerospace is a leading U.S. company that designs and manufactures aircraft engines and aviation systems. It is headquartered in Evendale, Ohio. The company produces jet and turboprop engines for commercial, military, and business aircraft. It also builds integrated systems like avionics and power units.
GE Aerospace became independent in April 2024 after General Electric split into three separate companies. It now owns the GE brand and logo. It operates through two main segments: Commercial Engines & Services and Defense & Propulsion Technologies. Both offer manufacturing and maintenance services.
GE Aerospace supports over 70,000 engines worldwide and employs around 53,000 people. The company partners with Safran Aircraft Engines through CFM International, which supplies engines for many Boeing and Airbus aircraft. It also develops advanced technologies like adaptive cycle engines and additive manufacturing to improve fuel efficiency and reduce emissions
General Electric Fiscal Q4 2025
GE Aerospace (GE) reported a sharp increase in demand, with total orders rising 74% to $27 billion in the fourth quarter 2025.
Revenue reached $12.7 billion, up 18% and ahead of expectations. GAAP profit grew 24% to $2.9 billion, while operating profit rose 14% to $2.3 billion.
GAAP profit margin improved to 22.4%, though the operating margin slipped slightly. Earnings also strengthened, with GAAP EPS up 32% to $2.31 and adjusted EPS up 19%, beating estimates.
Cash generation was solid, with operating cash flow up 59% to $2.1 billion and free cash flow up 15% to $1.8 billion.
Full Year 2025 Results:
- For the full year 2025, total orders increased 32% to $66.2 billion.
- GAAP revenue rose 18% to $45.9 billion, and adjusted revenue grew 21% to $42.3 billion.
- Profitability improved meaningfully, with GAAP profit up 31% to $10.0 billion and operating profit up 25% to $9.1 billion.
- GAAP profit margin expanded to 21.8%, and operating margin also strengthened.
- Full‑year GAAP EPS climbed 32% to $8.05, while adjusted EPS rose 38% to $6.37.
- Cash performance remained strong, with operating cash flow up 47% to $8.5 billion and free cash flow up 24% to $7.7 billion.
Highlights:
- GE Aerospace expanded CES to include T&O under Mohamed Ali and launched a new customer experience unit led by Jason Tonich.
- Material input from priority suppliers rose over 40% in 2025, supporting a 26% increase in CES services revenue and a 25% rise in engine deliveries, including a record 28% growth in LEAP engines.
- Defense engine deliveries grew 30% year-over-year.
- Secured over 500 engine wins at the Dubai Airshow, including major commitments from Riyadh Air and flydubai.
- Launched ground tests of a hybrid electric demonstrator as part of future flight innovation.
- Committed over $1 billion to global MRO expansion, with $500 million focused on LEAP capacity across multiple international sites.
- Renewed open aftermarket agreement with IATA for CFM56 and LEAP engines.
- Won a 113-engine order from Hindustan Aeronautics and advanced autonomous systems development with Shield AI.
Guidance and Outlook
GE expected Adjusted revenue to grow in the low double digits, following 21% growth in 2025.
Operating profit is projected between $9.85B and $10.25B, up from $9.1B last year.
Adjusted EPS is guided at $7.10 to $7.40, compared to $6.37 in 2025.
Free cash flow is expected to reach $8.0B to $8.4B, with conversion remaining above 100%.
Board Statements
GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. said the company delivered a strong fourth quarter and an exceptional full year, highlighted by 21% revenue growth, a 38% increase in EPS, and free cash flow conversion above 100%. He noted that the results show how the FLIGHT DECK operating system is gaining traction as the company ramps up services and equipment output to meet a growing backlog of about $190 billion.
Culp added that GE Aerospace enters 2026 with solid momentum and is well positioned to deliver greater value for customers. He emphasized that this foundation supports another year of meaningful EPS and cash growth and expressed confidence in the team’s ability to execute.
Impact on the Market
GE Aerospace’s stock dropped more than 7% after the earnings release as investors focused less on the strong headline numbers and more on the parts of the outlook that signaled slower momentum ahead.
Even though the company delivered solid beats on revenue, EPS, and orders, the guidance suggested that growth in 2026 would moderate compared with the exceptionally strong performance in 2025.
Taken together, the results were strong, but the forward‑looking signals were not strong enough to match investor expectations, leading to the sharp pullback in the stock.
