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Bullish Management Commentary
Here’s what GE Aerospace CEO Lawrence Culp Jr. had to say about the quarter:
“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. We are raising our 2025 guidance and 2028 outlook, with our operating performance and robust commercial services outlook underpinning our higher revenue, earnings, and cash growth expectations. Our team is using FLIGHT DECK to improve safety, quality, delivery and cost—always in that order—as we strive to provide unrivaled customer service and deliver on our roughly $175 billion backlog.”
Shares are currently trading slighty up. GE Aerosapce has gained .5% in premarket trading.
GE Aerospace Earnings Summary
GE Aerospace reported strong results for Q2 2025, with total GAAP revenue of $11.0 billion, up 21% year-over-year, and adjusted revenue of $10.2 billion, up 23%.
Adjusted EPS came in at $1.66, a 38% increase, beating the consensus estimate of $1.45.
Operating profit rose 23% to $2.34 billion, and free cash flow nearly doubled to $2.1 billion.
The company raised its 2025 guidance and 2028 outlook, now targeting mid-teens adjusted revenue growth for 2025 and double-digit CAGR through 2028, with 2028 operating profit and free cash flow targets both increased by $1.5 billion from prior guidance.
Commercial Engines & Services saw a 30% revenue jump and a 33% rise in profit, driven by robust services and equipment sales, while Defense & Propulsion Technologies posted 7% revenue growth and 5% profit growth.
GE Aerospace also announced a 20% increase in planned capital returns to shareholders from 2024 to 2026, and expects to return at least 70% of free cash flow via dividends and buybacks beyond 2026.
Major new engine deals and continued operational improvements underpin management’s confidence in sustained growth and higher returns.
GE Beats Earnings Expectations
GE Aerospace earnings are in, and the headline is they beat soundly on EPS. The company delivered adjusted EPS of $1.66 versus Wall Street expectations of $1.45.
So far, shares are up 1.69%. We will continue updating this live blog with analysis.
GE Aerosapce Conference Call Starts at 7:30
You can sign up to attend by visiting GE’s investor relations page.
GE Aerospace (NYSE: GE) is reporting its second-quarter earnings this morning. We’ll be providing live analysis and commentary in this earnings blog. Simply stay on this page and you’ll receive new updates analyazing Wall Street’s reactions and need-to-know data from GE’s report!
Let’s get started by looking at what Wall Street expects the company to report this morning.
Wall Street Expectations for GE Aerospace’s Q2
Here’s the key conensus estimates to watch this morning:
- Revenue: $9.59 billion
- EPS (Normalized): $1.45
- EPS (GAAP): $1.56
- Gross Margins: 36.55%
- Operating Cash Flow: $1.88 billion
Key Themes That Will Drive GE’s Share Price Today
Beyond GE beating on revenue and EPS and posting guidance, here are some themes you’ll want to watch. Wall Street will probe into these on the company’s conference call and commentary on each could determine whether the company soars or falls today and in the coming weeks.
- Tariffs and Geopolitics: Tariffs remain in the news on a nearly daily basis and as a company that has significant supply chains, analysts will be looking at how tariffs are impacting the company. GE Aerospace previously said they expect to reduce tariff headwinds by $500 million through actions like duty drawbacks, but any commentary the company provided on their conference call three months ago feels like a lifetime ago. Any updated guidance on how tariffs are impacting GE’s business will be closely followed by Wall Street.
- Departures: Last quarter, management lowered their departures guidance. While they cited a strong backlog which would buffer through a slowdown in departures, management commentary on the overall health of the air travel market is something that Wall Street will be watching closely today.
The post Live: GE Aerospace (NYSE: GE) Q2 Earnings Analysis appeared first on 24/7 Wall St..
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Author: Eric Bleeker
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