GE Aerospace Reports Strong Q3 2025 with Raised Full Year Outlook

GE Aerospace Soars with Exceptional Third-Quarter Performance

GE Aerospace has reported a standout third quarter for 2025, delivering financial results that significantly surpassed market expectations. The performance underscores a period of robust demand across both commercial and defense aviation sectors, signaling strength not only for the company but for the broader aerospace industry. With substantial year-over-year growth in revenue, profits, and cash flow, the quarter reflects a combination of strategic operational execution and favorable market conditions. This strong showing has solidified investor confidence, leading to a positive market reaction and an upward revision of the company’s financial outlook for the full year.

The impressive results are a testament to the company’s focused strategy following its evolution into a standalone aerospace entity. The consistent growth trajectory highlights the successful implementation of its proprietary lean operating model, FLIGHT DECK, which emphasizes continuous improvement and customer-centric solutions. As the industry continues to navigate post-pandemic recovery and growing geopolitical demands, GE Aerospace’s ability to ramp up production and services effectively positions it as a key player. The reported figures provide a clear, data-driven narrative of a company capitalizing on strong market fundamentals and internal efficiencies to achieve remarkable growth.

Dissecting the Financials: A Quarter of Record Growth

The third-quarter financial report from GE Aerospace paints a picture of comprehensive and robust growth. The company announced total revenues of $12.2 billion, a 24% increase compared to the same period in the previous year, with adjusted revenue climbing 26% to $11.3 billion. This performance comfortably exceeded Wall Street forecasts, which had anticipated total revenue around $10.9 billion. The profitability metrics were equally impressive, with a GAAP profit of $2.5 billion, marking a 33% year-over-year rise, and an operating profit of $2.3 billion, up 26%.

A standout figure in the report was the earnings per share (EPS). Continuing EPS reached $2.04, a 31% increase, while the adjusted EPS saw a significant 44% jump to $1.66. This result was well above the analyst consensus of $1.47 per share. The strong earnings were supported by healthy cash generation, as cash from operating activities grew by 34% to $2.6 billion, and free cash flow increased by 30% to $2.4 billion. These numbers reflect not just higher sales, but also efficient management of operations and working capital, culminating in what the company described as over 130% free cash flow conversion.

The market’s reaction to the earnings announcement was immediate and positive, with GE Aerospace’s stock reaching a record high. This surge reflects strong investor confidence in the company’s current performance and future prospects. The consistent outperformance is attributed to the successful execution of its operational strategies and its ability to meet the surging demand in the aviation sector. The company’s ability to increase output, particularly in its engine deliveries, has been a critical factor in achieving these results.

“GE Aerospace delivered an exceptional quarter with revenue up 26%, EPS up 44%, and more than 130% free cash flow conversion. Given the strength of our year-to-date results and our expectations for the fourth quarter, we’re raising our full-year guidance across the board.”, H. Lawrence Culp, Jr., Chairman and CEO of GE Aerospace

Powering Commercial and Defense Aviation

The growth was broad-based, with both of GE Aerospace’s primary business segments delivering strong results. The Commercial-Aircraft Engines & Services (CES) division reported a 27% increase in revenue. This was driven by a 28% growth in services, including a 33% rise in internal shop visit revenue, and a 22% increase in equipment revenue. The operating profit for the CES segment grew by 35%, benefiting from higher services volume and favorable pricing. This performance highlights the continued recovery and strength in commercial air travel, leading to increased demand for both new engines and maintenance services. The company also noted record deliveries for its LEAP engines, which were up 40% year-over-year.

On the Military-Aircraft side, the Defense & Propulsion Technologies (DPT) segment also posted impressive figures. The DPT segment saw a 26% increase in revenue and a remarkable 75% surge in operating profit. This significant profit growth was attributed to higher volume, favorable customer mix, and improved pricing, which more than offset investments and inflationary pressures. The results underscore the robust demand in the defense sector, driven by global security concerns and military modernization programs. The company also highlighted key advancements, including the completion of its first supersonic test campaign in flight.

The strong performance across both segments demonstrates a well-balanced and resilient business model. The company has secured significant new engine Orders, including large commitments from major Airlines like Korean Air and Cathay Pacific, ensuring a strong future revenue pipeline. Furthermore, strategic initiatives, such as a new Partnerships with BETA Technologies to co-develop a hybrid electric turbogenerator, signal a commitment to innovation and future flight technologies. These efforts in both current execution and future-focused development are key to sustaining momentum.

Future Outlook and Raised Expectations

Buoyed by the exceptional year-to-date performance, GE Aerospace has confidently raised its full-year guidance for 2025. The company now projects adjusted revenue growth to be in the high-teens, an upgrade from the previous forecast of mid-teens. This optimistic outlook is a direct result of the sustained strong demand and the company’s demonstrated ability to increase output across its business segments. The forecast for profitability has also been revised upwards, with operating profit now expected to be in the range of $8.65 billion to $8.85 billion.

The adjusted EPS forecast has been increased to a range of $6.00 to $6.20, up from the prior range of $5.60 to $5.80. Furthermore, the company anticipates free cash flow to be between $7.1 billion and $7.3 billion. This revised guidance sends a strong signal to the market about the company’s confidence in its operational capabilities and the durability of the current market upcycle. The ability to raise guidance across all key metrics reflects a deep-seated belief in continued operational execution and favorable market dynamics through the end of the year and beyond.

FAQ

Question: What were the main highlights of GE Aerospace’s Q3 2025 results?
Answer: GE Aerospace reported a 24% increase in total revenue to $12.2 billion, a 33% rise in GAAP profit to $2.5 billion, and a 44% increase in adjusted EPS to $1.66, all of which surpassed market expectations.

Question: How did GE Aerospace’s main business segments perform?
Answer: The Commercial Engines & Services (CES) segment saw revenue grow by 27%, while the Defense & Propulsion Technologies (DPT) segment’s revenue increased by 26%. The DPT segment’s operating profit saw a significant 75% rise.

Question: Did GE Aerospace update its financial forecast for 2025?
Answer: Yes, the company raised its full-year guidance. It now expects adjusted revenue growth in the high-teens and adjusted EPS to be between $6.00 and $6.20.

Sources: GE Aerospace