GE Aerospace Earnings Beat Estimates in Q1, Surge 60% Y/Y

GE Aerospace GE reported first-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 first-quarter adjusted earnings were $1.49 per share, which beat the Zacks Consensus Estimate of $1.26. The bottom line surged 60% year over year.

Total revenues were $9.9 billion, indicating a year-over-year increase of 11%. Total orders grew 12% on a year-over-year basis to $12.3 billion.

Adjusted revenues were $9 billion, marking a year-over-year rise of 11%. The metric beat the consensus estimate of $8.97 billion. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

GE Aerospace Price, Consensus and EPS Surprise

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

GE’s Segmental Discussion

Revenues from the company’s Commercial Engines & Services business jumped 14.5% year over year to $6.98 billion. The Zacks Consensus Estimate for the business’ revenues was pegged at $7.01 billion. The results were driven by higher shop visit work scope, increased spare parts and price. Total orders in the segment rose 15% year over year to $9.6 billion.

The Defense & Propulsion Technologies segment’s revenues totaled $2.32 billion, up 1% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.35 billion. Results benefited from the strong momentum in the defense & propulsion technologies business. Total orders in the segment were flat year over year at $3 billion.

GE’s Margin Profile

GE Aerospace’s cost of sales (comprising costs of equipment and services sold) grew 4.3% year over year at $6 billion. Selling, general and administrative expenses decreased 14.6% year over year to $876 million. Research and development expenses totaled $359 million, reflecting a year-over-year rise of 33%.

GE Aerospace’s adjusted operating profit was $2.1 billion, up 38.4% year over year. The margin was 23.8%, up 460 basis points.

GE Aerospace’s Balance Sheet & Cash Flow

Exiting the first 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 $17.5 billion compared with $17.2 billion at the end of December 2024.

In the first quarter, the adjusted free cash flow was $1.4 billion compared with $1.7 billion in the year-ago period.

In the same period, GE rewarded its shareholders with a dividend payment of $302 million. The company repurchased shares for approximately $1.97 billion during the same period.

GE’s Outlook

For 2025, 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 $7.8-$8.2 billion. Adjusted earnings are predicted to be in the range of $5.10-$5.45 per share. The free cash flow is anticipated to be in the band of $6.3-$6.8 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-teen digits, whereas operating profit is anticipated to be in the band of $7.6-$7.9 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 $1.1-$1.3 billion.

GE’s Zacks Rank

The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Astronics Corporation ATRO currently sports a Zacks Rank of 1. ATRO delivered an earnings surprise of 128.6% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for Astronics’ 2025 earnings has increased 3.5%.

AerSale Corporation ASLE presently sports a Zacks Rank 1. ASLE delivered earnings surprise of 28.6% in the last reported quarter.
In the past 60 days, the consensus estimate for AerSale’s 2025 earnings has increased 32.1%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research