GE Aerospace (GE) Q1 2025 earnings summary

Executive summary

• Achieved double-digit growth in Q1 2025 orders and revenue, with adjusted EPS up 60% to $1.49 and GAAP EPS up 16% to $1.83, driven by strong commercial services and equipment performance.

• Operating profit rose 38% to $2.1 billion, and net income from continuing operations reached $1.97 billion.

• Robust backlog over $170 billion, with commercial services backlog exceeding $140 billion, supporting multi-year growth.

• Completed the spin-off of GE Vernova in April 2024 and announced major engine commitments with ANA, Malaysia Aviation Group, and Korean Air.

• Continued focus on safety, innovation, and operational execution, including advanced R&D milestones and U.S. manufacturing investments.

Financial highlights

• Orders up 12% to $12.3B and revenue up 11% to $9.9B year-over-year; operating profit $2.1B (+38%), profit margin 22.6%, and operating margin 23.8% (+460 bps).

• CES revenue up 14% to $7.0B, services revenue up 17%, and segment profit up 35% to $1.92B (margin 27.5%).

• DPT revenue up 1% to $2.3B, segment profit up 16% to $296M (margin 12.7%).

• Adjusted EPS $1.49 (+60% y/y); free cash flow $1.4B (down 14% y/y), with conversion at 90–121%.

• Adjusted effective tax rate improved to 17.6% from 20.7% y/y.

Outlook and guidance

• Maintains 2025 guidance: adjusted revenue growth low double digits, operating profit $7.8–$8.2B, adjusted EPS $5.10–$5.45, and free cash flow $6.3–$6.8B.

• CES expects mid-teens revenue growth; DPT expects mid- to high-single-digit growth.

• Guidance assumes announced tariffs, low single-digit departure growth, and delayed spare engine deliveries; excludes further tariff escalation and global recession.

• Embedded conservatism in guidance due to macro uncertainty, tariffs, and potential slowdown in North American departures.