General Electric Company
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.43%.
Did GE Beat Earnings? Q2 2025 Results
GE Aerospace posted a standout second quarter, with adjusted earnings per share of $1.66 beating the $1.40 consensus estimate by 18.56% and revenue of $11.02 billion topping expectations by 15.97% while climbing 21.2% year over year. The primary driver behind the blowout results was the Commercial Engines & Services segment, where revenue surged 30% to $7.99 billion as spare parts demand and shop visit volume lifted services revenue 29% and equipment sales jumped 35% on higher unit deliveries and pricing. Free cash flow nearly doubled to $2.10 billion, up 92% from the prior year, underscoring the operational momentum management has been building through its FLIGHT DECK system. Confidence in the trajectory was evident in the company's upgraded outlook; GE Aerospace now targets 2025 adjusted EPS of $5.60 to $5.80, up from a prior range of $5.10 to $5.45, and raised its 2028 operating profit goal to approximately $11.50 billion, a $1.50 billion step up from the previous framework, with planned shareholder returns increasing to roughly $24.00 billion through 2026.
- CES services revenue up 29% driven by spare parts and internal shop visit revenue
- CES equipment revenue up 35% from higher unit volume and pricing
- Supply chain improvements via FLIGHT DECK: material input at priority supplier sites improved 10% sequentially, with suppliers delivering more than 95% of committed volume
- Total engine units up 45% year-over-year
- Services volume, productivity, and price driving profit growth, offsetting investments and inflation
- Orders of $11.7 billion in CES, up 28%
“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.”
GE Aerospace CEO, on the earnings call
Forward Guidance & Outlook
GE Aerospace raised its 2025 guidance: adjusted revenue growth now expected at mid-teens (up from low-double-digits), operating profit of $8.2–$8.5 billion (up from $7.8–$8.2 billion), adjusted EPS of $5.60–$5.80 (up from $5.10–$5.45), and free cash flow of $6.5–$6.9 billion (up from $6.3–$6.8 billion) with FCF conversion above 100%. The 2028 outlook was also raised, now targeting approximately $11.5 billion of operating profit and approximately $8.5 billion of free cash flow — both up $1.5 billion from the prior 2024 Investor Day outlook — with double-digit adjusted revenue CAGR from 2024–2028 and adjusted EPS of approximately $8.40. CES expects high-teens revenue growth in 2025 and $8.0–$8.2 billion operating profit. DPT expects mid-single-digit to high-single-digit revenue growth and $1.1–$1.3 billion operating profit in 2025. The company plans to increase capital returns to shareholders from 2024 to 2026 by 20% to approximately $24 billion and to sustainably return at least 70% of free cash flow via dividends and buybacks beyond 2026.
GE YoY Financials
GE Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.