GE Aerospace (NYSE:GE) on Thursday reported strong fourth-quarter 2025 results, reflecting continued momentum across its businesses. It posted total revenue (GAAP) of $12.717 billion, up 18% year over year. Sales of $12.717 billion beat the $11.177 billion estimate, and adjusted EPS of $1.57 beat the $1.43 estimate.
Continuing EPS (GAAP) was $2.31, up 32%, and adjusted EPS was $1.57, up 19%.
Cash from operating activities was $2.096 billion, up 59%, and free cash flow was $1.760 billion, up 15%. GE Aerospace reported a cash balance of $12.4 billion and total borrowings of $20.5 billion.
CEO Commentary And Backlog Growth
Chairman and CEO H. Lawrence Culp, Jr., said, “With a strong fourth quarter, GE Aerospace delivered an outstanding year as revenue grew 21%, EPS was up 38%, and free cash flow conversion exceeded 100%. Our performance demonstrates how FLIGHT DECK is taking hold as we accelerated services and equipment output to fulfill our growing backlog of roughly $190 billion.”
Culp continued, “We enter 2026 with solid momentum to build upon these results and are well positioned to create greater value for our customers. This supports another year of substantial EPS and cash growth, and I’m confident our team will deliver.”
On the earnings call, Culp said Boeing’s 777X delays have not impacted near-term GE9X engine shipments, and insisted there is “no talk of a slowdown” in airline or defense demand, citing strong order momentum, persistent input cost inflation, and confidence in the company’s pricing and aftermarket strategy.
Segment Performance
Commercial Engines & Services’ fourth-quarter revenue increased 24% to $9.468 billion, and the operating profit margin was 24.0%, down 420 basis points.
Defense & Propulsion Technologies revenue increased 13% to $2.839 billion, and the operating profit margin was 8.9%, down 70 basis points. The company cited Defense’s book-to-bill of 2.2x.
Commercial engine deliveries rose 25% in 2025, including record LEAP deliveries of 1,802 engines, up 28%, and the company expects LEAP deliveries to increase 15% in 2026.
Total orders for the quarter rose 74% year over year to $27.0 billion, reflecting strength across both services and equipment. Commercial Engines & Services orders increased 76%, while Defense & Propulsion Technologies orders were up 61%.
Outlook
For 2026, GE Aerospace guided to adjusted EPS of $7.10 to $7.40 versus the $7.12 estimate, and free cash flow of $8.0 billion to $8.4 billion, with adjusted ETR below 17% and no planned debt repayment, as it plans to refinance 2026+ maturities.
GE Aerospace guided to an operating profit of $9.85 billion to $10.25 billion.
For 2026, GE Aerospace expects Commercial Engines & Services revenue to grow at a mid-teens rate and Defense & Propulsion Technologies revenue to increase at a mid-single-digit to high-single-digit rate.
Commercial Engines & Services’ operating profit is guided to $9.6 billion to $9.9 billion, Defense & Propulsion Technologies’ operating profit to $1.55 billion to $1.65 billion, and Corporate costs and eliminations to $(1.2) billion to $(1.3) billion.
GE Price Action: GE Aerospace shares were down 0.25% at $317.70 during premarket trading on Thursday. The stock is approaching its 52-week high of $332.79, according to Benzinga Pro data.
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