GE Aerospace Q2 Profit, Revenue Beat Expectations; Lifts Annual Outlook

GE Aerospace

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(RTTNews) - GE Aerospace (GE) Thursday reported net income from continuing operations before tax of $2.389 billion for the second quarter, significantly higher than $1.447 billion in the same quarter a year ago, primarily helped by growth in sales of services. Profit as well as revenue beat analysts' view. The company also raised its annual outlook.

Net income from continuing operations increased to $2 billion or $1.87 per share from $1.322 billion or $1.20 per share a year ago.

Net income attributable to common shareholders was $2.028 billion or $1.89 per share, up from $1.266 billion or $1.15 per share last year.

Excluding one-time items, adjusted net income was $1.777 billion or $1.66 per share, higher than $1.321 billion or $1.20 per share a year ago. On average, 14 analysts expected earnings of $1.4 per share for the quarter. Analysts' estimates typically exclude special items.

Revenue for the quarter grew 21% to $11.023 billion from $9.094 billion in the previous year. Adjusted revenue was $10.151 billion, up from $8.223 billion. The consensus estimate was for $9.51 billion.

Sales of services increased to $7.308 billion from $6.047 billion, and sales of equipment rose to $2.842 billion from $2.175 billion, while insurance revenue was nearly flat at $872 million.

Additionally, GE Aerospace said that it plans to increase capital returns to shareholders from 2024 to 2026 by 20%, to nearly $24 billion. It expects to return at least 70% of free cash flow via dividend and buybacks beyond 2026.

For 2025, the company now expects adjusted EPS to be in the range of $5.60 - $5.80, up from the previous outlook of $5.10 - $5.45. It now sees adjusted revenue to grow in mid-teens, compared with the prior guidance of low-double-digits growth.

For 2028, GE Aerospace has raised its adjusted revenue growth outlook to double-digit CAGR '24-'28 from high-single-digit CAGR '25-'28. It also sees adjusted EPS to be nearly $8.40.

"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," said GE Aerospace Chairman and CEO H. Lawrence Culp, Jr.