GE Aerospace Reports First-Quarter 2025 Results

GE Aerospace Reports First-Quarter 2025 Results

Robust Financial Performance Amid Tariff Pressures

GE Aerospace announced strong financial results for the first quarter of 2025, demonstrating resilience in the face of increased tariff costs and a cautious industry outlook. The company reported double-digit growth in both orders and revenue, reflecting sustained demand across its commercial and defense segments.

Total orders increased by 12% to $12.3 billion, while total GAAP revenue rose 11% to $9.9 billion. Adjusted revenue also grew by 11%, reaching $9.0 billion. Profitability improved significantly, with GAAP profit climbing 13% to $2.2 billion and operating profit surging 38% to $2.1 billion. The GAAP profit margin expanded by 40 basis points to 22.6%, and the operating profit margin increased by 460 basis points to 23.8%. Continuing GAAP earnings per share (EPS) rose 16% to $1.83, while adjusted EPS surged 60% to $1.49. Cash from operating activities declined 5% to $1.5 billion, and free cash flow decreased 14% to $1.4 billion.

Strategic Growth and Contract Wins

Chairman and CEO H. Lawrence Culp, Jr. attributed the strong start to the year to growth in commercial services and a notable rise in adjusted earnings per share. He highlighted the company’s disciplined approach to cost control and the strategic use of trade programs to counteract macroeconomic challenges. Despite ongoing headwinds, GE Aerospace reaffirmed its full-year guidance.

During the quarter, GE Aerospace secured several significant contracts. In the commercial engines and services segment, ANA committed to over 75 LEAP engines for Airbus A321neo and Boeing 737 MAX aircraft, in addition to selecting GEnx engines for 18 Boeing 787-9s. Malaysia Aviation Group committed to 60 CFM LEAP engines for 30 Boeing 737 MAX aircraft. In the widebody aircraft sector, Korean Air agreed to purchase up to 30 Boeing 787-10s and 20 777-9s, powered by GEnx and GE9X engines.

On the defense front, the U.S. Air Force awarded a contract valued at up to $5 billion for F110 engines. GE Aerospace also completed initial ground runs for the T901 engine on a U.S. Army Black Hawk helicopter, and the XA102 adaptive cycle engine successfully passed its Detailed Design Review.

Outlook and Market Challenges

GE Aerospace maintained its full-year guidance, projecting low double-digit adjusted revenue growth, operating profit between $7.8 billion and $8.2 billion, adjusted EPS ranging from $5.10 to $5.45, and free cash flow between $6.3 billion and $6.8 billion.

The company continues to navigate challenges posed by heightened tariffs, which have increased costs for both GE Aerospace and its suppliers. To mitigate these impacts, the company is implementing mid-to-high single-digit price increases and leveraging trade programs. Additionally, GE Aerospace is exploring alternative sourcing strategies and negotiating improved terms with suppliers to protect profit margins and maintain competitive pricing.

These measures aim to enhance supply chain resilience and safeguard shareholder value amid evolving market conditions. GE Aerospace’s strong first-quarter performance underscores its capacity to adapt and sustain growth despite external pressures.