GE Aerospace Reports Strong Q2 Growth, Provides Updates on Key Engine Programs

GE Aerospace Reports Strong Q2 Growth and Progress on GE9X Engine Program

GE Aerospace has announced robust financial results for the second quarter and first half of 2025, demonstrating significant growth amid ongoing industry challenges. The company’s Q2 profit surged 65% to $2.4 billion, while total revenue increased by 21% to $11.0 billion. Profit margins improved markedly to 21.7%, up from 15.9% in the same period last year, representing a 37% increase. These figures were disclosed alongside a detailed Deep Dive Investor Update, underscoring GE Aerospace’s sustained momentum in the commercial aviation sector.

Chairman and CEO Larry Culp emphasized the company’s extensive market presence, noting that GE Aerospace powers three out of every four commercial flights globally. The Commercial Engines & Services (CES) division now supports more than 49,000 engines in service, a number that continues to grow. The quarter’s strong performance was driven primarily by a 29% increase in services revenue, a 45% rise in total commercial engine units, and a record-breaking order from Qatar Airways for over 400 GE9X and GEnx engines—the largest widebody engine deal in GE’s history.

GE9X Engine Nears Entry into Service After Prolonged Delays

Following several years of delays associated with the Boeing 777X program, GE Aerospace is preparing for the imminent entry into service of its GE9X engine. Certification of the Boeing 777-9, the first variant of the 777X, is now anticipated by the end of 2025, with commercial operations expected to commence in the first quarter of 2026.

Culp highlighted the extensive testing and validation process the GE9X has undergone, describing it as the most rigorously tested engine in GE Aerospace’s history. The engine has completed over 30,000 test cycles and 8,000 endurance cycles, equivalent to six years of commercial flying. Drawing on experience from the GEnx and LEAP engines, GE Aerospace conducted dust testing prior to launch for the first time, leading to enhancements such as the second iteration of the high-pressure turbine blades. These efforts aim to ensure the GE9X reaches a high level of maturity at the time of its launch.

Customer confidence remains strong, with the GE9X securing a 60% win rate against competing engines. The current backlog exceeds 1,000 engines, reflecting robust demand. In addition to the substantial Qatar Airways order, Air India has placed a firm order for 20 Boeing 777-9 aircraft powered by GE9X engines. As of June 30, Boeing’s 777X backlog stood at 481 aircraft, all exclusively equipped with GE engines.

GE Aerospace began shipping GE9X engines to Boeing last year and plans to accelerate deliveries in the latter half of 2025. Chief Financial Officer Rahul Ghai indicated that initial shipments will contribute “a couple of hundred million dollars of profit headwind” in 2025, aligning with previous guidance. Cost reduction remains a key focus, with the company targeting a 30% decrease in costs by the production of the 50th engine.

Industry Challenges and Competitive Landscape

Despite its strong financial and operational performance, GE Aerospace continues to navigate several industry challenges. These include supply chain disruptions, evolving regulatory requirements, and intense competition from rivals such as Rolls-Royce and Pratt & Whitney. In response to GE’s market gains, competitors are expected to increase investments in their engine programs and pursue strategic partnerships to protect their market positions.

The market has responded positively to GE Aerospace’s Q2 results, with the company’s stock price rising following the earnings announcement. As GE advances its next-generation engine programs and addresses ongoing industry challenges, it remains a pivotal force shaping the future of commercial aviation.