GE Aerospace Q4 Earnings & Revenues Top Estimates, Increase Y/Y

GE Aerospace GE reported fourth-quarter 2025 results, wherein both revenues and earnings surpassed the Zacks Consensus Estimate.

It is worth noting that in April 2024, GE Aerospace emerged as a separate public company, following the spin-off of GE Vernova Inc. GEV from General Electric.

Inside GE’s Headlines

The company’s fourth-quarter adjusted earnings were $1.57 per share, which beat the Zacks Consensus Estimate of $1.44. The bottom line surged 19% year over year.

Total revenues were $12.7 billion, indicating a year-over-year increase of 18%. Total orders soared 74% on a year-over-year basis to $27 billion.

Adjusted revenues were $11.87 billion, marking a year-over-year increase of 20%. The metric beat the consensus estimate of $11.26 billion.

For 2025, GE Aerospace reported adjusted revenues of $42.3 billion, reflecting an increase of 21% year over year. The company’s adjusted earnings were $6.37 per share, up 38% year-over-year.

GE’s Segmental Discussion in Q4

Revenues from the company’s Commercial Engines & Services business jumped 24% year over year to $9.47 billion. The Zacks Consensus Estimate for the business’ revenues was pegged at $9.09 billion. The results were driven by higher shop visit work scope, increased revenues from spare parts and equipment and favorable pricing. Total orders in the segment rose 76% year over year to $22.8 billion.

The Defense & Propulsion Technologies segment’s revenues totaled $2.84 billion, up 13% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.73 billion. Results benefited from the strong momentum in the Defense & Systems and Propulsion & Additive Technologies businesses. Total orders in the segment increased 61% year over year to $4.57 billion.

GE Aerospace Price, Consensus and EPS Surprise

GE Aerospace price-consensus-eps-surprise-chart | GE Aerospace Quote

GE’s Margin Profile

GE Aerospace’s cost of sales (comprising costs of equipment and services sold) surged 23.7% year over year at $8.36 billion. Selling, general and administrative expenses decreased 13.8% year over year to $997 million. Research and development expenses totaled $448 million, reflecting a year-over-year rise of 16.4%.

GE Aerospace’s operating profit (non-GAAP) was $2.3 billion, up 14% year over year. The margin was 19.2%, contracting 90 basis points (bps) year over year.

GE Aerospace’s Balance Sheet & Cash Flow

Exiting the fourth quarter of 2025, GE Aerospace had cash, cash equivalents and restricted cash of $12.4 billion compared with $13.6 billion at the end of December 2024. The company’s long-term borrowings were $18.8 billion compared with $17.2 billion at the end of December 2024.

In the fourth quarter, the adjusted free cash flow was $1.76 billion compared with $1.53 billion in the year-ago quarter.

GE’s Outlook

For 2026, GE expects adjusted revenues to grow in the low-double-digit range from the year-ago period's actual. Operating profit is estimated to be in the band of $9.85-$10.25 billion. Adjusted earnings are predicted to be in the range of $7.10-$7.40 per share. The free cash flow is anticipated to be in the band of $8.0-$8.4 billion, with the conversion rate projected to be more than 100%.

GE Aerospace expects the Commercial Engines & Services segment’s revenues to grow in the mid-teens range, whereas operating profit is anticipated to be in the band of $9.60-$9.90 billion. For the Defense & Propulsion Technologies segment, revenues are projected to increase in the mid-to-high single-digit range, whereas operating profit is anticipated to be in the band of $1.55-$1.65 billion.

Zacks Rank and Stocks to Consider

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A couple of better-ranked stocks from the same space are discussed below:

Huntington Ingalls Industries, Inc. HII presently carries a Zacks Rank #2 (Buy). Huntington Ingalls’ earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 14.5%. In the past 60 days, the Zacks Consensus Estimate for HII’s 2025 earnings has inched up 0.4%.

Kratos Defense & Security Solutions, Inc. KTOS currently carries a Zacks Rank of 2. Kratos Defense’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 29.2%.  In the past 60 days, the Zacks Consensus Estimate for Kratos Defense’s 2025 earnings has been stable.

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This article originally published on Zacks Investment Research (zacks.com).

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