GE Aerospace Q2 2025 Reports Strong Revenue and Orders Growth

GE Aerospace Q2 2025: Record Revenue and Orders Growth Fuels Optimism

GE Aerospace’s second quarter of 2025 marked a significant milestone in its post-spin-off evolution, showcasing robust financial performance and strategic momentum. The company reported a 25.5% year-over-year increase in adjusted revenue and a 26.8% rise in total orders. These results not only exceeded Wall Street expectations but also highlighted the strength of its commercial and defense segments amid a recovering global aerospace market.

Following its full separation from General Electric in April 2024, GE Aerospace has emerged as a standalone aviation powerhouse. With a focus on aircraft engines, systems, and services, the company is strategically positioned to capitalize on the resurgence of global air travel and heightened defense spending. Its Q2 2025 performance underlines both operational efficiency and market demand, setting the stage for continued growth.

This article delves into the key financial figures, strategic developments, and broader industry context that shaped GE Aerospace’s Q2 2025, providing a comprehensive view of its trajectory and outlook.

Q2 2025 Financial Performance

Revenue, Profit, and Orders Overview

GE Aerospace reported adjusted revenue of $10.2 billion in Q2 2025, a 25.5% increase compared to the same quarter last year. This figure surpassed analyst expectations, which had projected $9.59 billion. The company’s adjusted earnings per share (EPS) came in at $1.66, beating the consensus estimate of $1.43 and marking a 38% year-over-year improvement.

Operating profit reached $2.3 billion, up 23% from Q2 2024, driven largely by growth in the commercial services business. Free cash flow also saw a substantial jump, rising 92% year-over-year to $2.1 billion, reflecting strong capital discipline and operational efficiencies.

On the order front, total bookings climbed to $14.2 billion, a 26.8% increase from the previous year. This surge was led by the Commercial Engines & Services (CES) segment, which recorded $11.7 billion in orders, up 28% year-over-year. These included high-profile contracts such as over 400 GE9X and GEnx engines for Qatar Airways and 32 engines for Boeing 787s ordered by IAG.

“The GE Aerospace team delivered an excellent second quarter with free cash flow nearly doubling and more than 20% growth in orders, revenue, operating profit, and EPS.”, H. Lawrence Culp, Jr., Chairman and CEO

Segment Performance: CES and DPT

The Commercial Engines & Services (CES) segment was the standout performer in Q2. Revenue in this segment reached $8.0 billion, a 30% increase year-over-year. Profits also rose by 33% to $2.2 billion. This growth was largely fueled by a 29% increase in services revenue, driven by higher demand for spare parts and shop visits as airlines ramped up operations post-pandemic.

The Defense & Propulsion Technologies (DPT) segment posted more modest gains. Revenue rose 7% to $2.6 billion, while profit increased 5% to $362 million. The segment benefited from increased U.S. defense spending, particularly under legislative initiatives like the “One Big Beautiful Bill,” which added $156 billion to the defense budget.

Combined, the two segments reflect a balanced growth strategy, with CES capturing commercial aviation recovery and DPT providing stability through government contracts.

Backlog and Financial Health

GE Aerospace reported a backlog of approximately $175 billion at the end of Q2 2025, offering multi-year revenue visibility. This backlog includes long-term service agreements and engine orders, providing a cushion against market volatility.

The company’s financial health also remains strong. With nearly $2.1 billion in free cash flow generated during the quarter and a clear capital allocation strategy, GE Aerospace is well-positioned to fund innovation, return capital to shareholders, and maintain operational resilience.

These financial indicators underscore the company’s ability to execute its strategic vision while navigating a complex global environment.

Strategic Developments and Forward Guidance

Operational Efficiency and Innovation

GE Aerospace continues to invest in operational improvements and next-generation technologies. The company’s FLIGHT DECK system, designed to enhance supply chain visibility and efficiency, improved material input at supplier sites by 10% sequentially. This innovation supports faster production cycles and better inventory management.

Another major initiative is the CFM RISE (Revolutionary Innovation for Sustainable Engines) program, a joint venture with Safran. Over 350 tests have been completed for this next-generation engine platform, which aims to achieve more than 20% fuel efficiency improvements over current models.

In the defense technology space, GE Aerospace has expanded its investment in hypersonics and upgraded U.S. test infrastructure to support future propulsion systems. These developments position the company as a key player in emerging aerospace technologies.

Raised Guidance for 2025 and 2028

In response to its strong Q2 performance, GE Aerospace raised its financial guidance for both 2025 and 2028. For 2025, the company now expects adjusted revenue growth in the mid-teens percentage range, up from its previous low-double-digit forecast. Operating profit is projected at $8.2–$8.5 billion, an increase from the earlier $7.8–$8.2 billion range.

Free cash flow for 2025 is expected to reach between $6.5 and $6.9 billion. Looking further ahead, the 2028 outlook includes an operating profit target of approximately $11.5 billion and free cash flow of around $8.5 billion, both up $1.5 billion from prior guidance.

These revised projections reflect management’s confidence in sustained growth, driven by market demand, operational execution, and technological innovation.

Shareholder Capital Returns

GE Aerospace has committed to returning substantial capital to shareholders. Between 2024 and 2026, the company plans to return approximately $24 billion, a 20% increase over prior periods. This will be executed through a combination of dividends and share buybacks.

Beyond 2026, the company aims to return at least 70% of its free cash flow to shareholders. This strategy aligns with its goal of delivering long-term value while maintaining financial flexibility for strategic investments.

Such capital return policies have been well-received by investors, reinforcing confidence in the company’s financial discipline and future prospects.

Conclusion

GE Aerospace’s Q2 2025 results underscore the company’s strong position in a recovering aerospace market. With double-digit revenue and order growth, improved profitability, and a robust backlog, the company has demonstrated its ability to execute on both strategic and operational fronts. The raised guidance for 2025 and 2028 further reflects management’s optimism about sustained growth.

Looking ahead, GE Aerospace faces opportunities and challenges. Continued innovation in engine technology, expansion in defense markets, and efficient capital allocation will be key drivers. At the same time, the company must navigate geopolitical risks and supply chain volatility. Overall, GE Aerospace appears well-equipped to maintain its trajectory as a leader in the global aerospace industry.

FAQ

What is GE Aerospace’s main business focus?
GE Aerospace focuses on aircraft engines, systems, and services. Its two main segments are Commercial Engines & Services (CES) and Defense & Propulsion Technologies (DPT).

How did GE Aerospace perform in Q2 2025?
The company reported $10.2 billion in adjusted revenue (+25.5% YoY), $2.3 billion in operating profit (+23% YoY), and $2.1 billion in free cash flow (+92% YoY).

What is the outlook for GE Aerospace?
GE Aerospace raised its 2025 guidance, projecting operating profit of $8.2–$8.5 billion and free cash flow of $6.5–$6.9 billion. Its 2028 outlook includes $11.5 billion in operating profit and $8.5 billion in free cash flow.

Sources:
Seeking Alpha,
Nasdaq,
Reuters,
Marketscreener,
Investing.com,
Zacks,
Finviz,
24/7 Wall St.,
CNBC,
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