General Electric Company
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +10.59%.
Did GE Beat Earnings? Q1 2025 Results
GE Aerospace delivered a standout first quarter in 2025, posting adjusted EPS of $1.49 and beating the $1.27 consensus estimate by 17.33%, while revenue of $9.94 billion topped expectations by 9.81% and rose 10.9% year-over-year. The primary engine of outperformance was the Commercial Engines and Services segment, where services revenue surged on more than 20% growth in spare parts and 11% growth in internal shop visits, pushing segment operating profit up 35% to $1.92 billion and lifting company-wide non-GAAP operating margins by 460 basis points to 23.8%. Total orders climbed 12% to $12.30 billion, and the commercial services backlog exceeded $140 billion, underscoring durable demand even as tariff headwinds weigh on the broader aerospace supply chain. Despite updating its assumptions to reflect those tariff impacts and trimming departure growth expectations to low-single-digits, GE Aerospace held its full-year guidance intact, projecting adjusted EPS of $5.10 to $5.45 and free cash flow of $6.30 to $6.80 billion.
- Commercial services revenue growth of 17% in CES driven by more than 20% growth in spare parts and 11% internal shop visit revenue growth
- 8% sequential increase in material inputs from priority suppliers through FLIGHT DECK operational system
- Services volume, mix, and price improvements more than offset inflation and investments
- Defense segment benefited from customer mix, productivity, and price improvements
“GE Aerospace had a strong start to 2025 with orders and revenue up double digits, driven by commercial services, and adjusted EPS up 60%. We continue to drive improvements through FLIGHT DECK, tackling supply chain constraints head on to accelerate deliveries throughout 2025.”
GE Aerospace CEO, on the earnings call
Forward Guidance & Outlook
GE Aerospace is maintaining its full-year 2025 guidance: adjusted revenue growth of low-double-digits, operating profit of $7.8–$8.2 billion, adjusted EPS of $5.10–$5.45, and free cash flow of $6.3–$6.8 billion with FCF conversion greater than 100%. CES is expected to deliver mid-teens revenue growth (services low-double-digits to mid-teens, equipment high-teens) with operating profit of $7.6–$7.9 billion. DPT is expected to see mid- to high-single-digit revenue growth with operating profit of $1.1–$1.3 billion. Corporate costs expected to be less than $1 billion. Updated assumptions now incorporate announced tariff impacts net of actions, lower departure growth (low-single-digits vs. prior mid-single-digits), and delayed spare engine deliveries. Guidance does not assume further tariff escalation, changes in airframer delivery schedules, or a global economic recession.
GE YoY Financials
GE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.