Live: GE Aerospace (NYSE: GE) Down 2% In late Trading
Key Points
-
GE Aerospace is reporting earnings this morning.
-
The company posted a significant EPS beat. We’re continuing to analyze the report in this live blog (updates automatically pushed below).
- Nvidia made early investors rich, but there is a new class of ‘Next Nvidia Stocks’ that could be even better; learn more here.
Live Updates
Get The Best General Electric Live Earnings Coverage Like This Every Quarter
Get earnings reminders, our top analysis on General Electric, market updates, and brand-new stock recommendations delivered directly to your inbox.
GE Now Down About 1.5%
We’re nearing the end of the trading day and GE shares are down about 1.5%, which is an improvement form the daily lows shortly after noon.
As we’ve noted, earnings from the company were solid but the stock has risen dramatically throughout 2025. It’s like that investors are taking profits and the stock is still up 55.5% year-to-date even after today’s 1.5% drop.
GE Aerospace Sinking As the Trading
Despite a solid earnings beat, GE Aerospace is trending down throughout the trading day. A little after noon, its shares are down about 2%.
If you’re confused why GE Aerospace is trading down after such exceptional results, keep in mind that shares are up an astounding 54% year-to-date (even after today’s declines). So, this appears to be mostly some profit-taking more than any concerns with GE Aerospace’s earnings.
Growth Rates
Here’s a look at growth rates in some key financial measures:
| Metric | Q2 25 | Q2 2024 | YoY Change |
|---|---|---|---|
| Revenue | $11.02B | $9.09B | 21.23% |
| Operating Income | $2.34B | $1.63B | 43.64% |
| Net Income | $2.39B | $1.27B | 88.70% |
| Cash and Equivalents | $10.86B | $12.11B | -10.29% |
| Total Assets | $125.26B | $123.19B | 1.68% |
| Total Liabilities | $105.91B | $104.35B | 1.50% |
| Shareholders Equity | $19.34B | $18.60B | 4.02% |
| Operating Cash Flow | $2.35B | $913.00M | 157.28% |
| Free Cash Flow | $2.10B | $835.00M | 152.10% |
Technology Roadmap
GE’s call spotlighted durability as a differentiator:
- Composite Fan Blades: Only GE has them in service (140M+ flight hours on GE90); informing GE9X (most tested engine ever, 30K+ cycles pre-launch) and CFM RISE.
- LEAP Enhancements: -1A durability kit (upgraded HPT blade) doubles time-on-wing; -1B kit certification H1 2026. Win rate >70% on A320 family since 2023.
- GEnx: Durability package boosts time-on-wing 2.5x; fleet leader at 4K cycles in harsh environments.
Culp: “We’re maturing technologies to deliver meaningful durability gains.” This supports mid-single-digit installed base CAGR through decade-end.
On Supply Chain and Operational Progress
CEO Culp highlighted supply chain momentum using FLIGHT DECK: Input volumes from critical suppliers up 10% sequentially, deliveries hitting 95% commitments—key for ramping LEAP/GEnx. Example: At Celma (Brazil) MRO site, fan module turnaround times cut 50% via cross-functional teams.
Investments: $2B+ in 2025 for facilities/supply chain. In Q&A, Culp said no single bottleneck fixed, but “moving target” with volumes; inflation stays elevated but offset by pricing. This underpins high-teens equipment growth guidance. Market buzz: X posts praise “supply chain wins” as stock ticks up 1.5%; analysts like TD Cowen note it’s progressing despite tightness.
Tariffs and Macro Outlook During Earnings Call
GE management addressed tariffs head-on in the call, noting a $500M net impact expected in 2025 (assuming implementation after current pause), but they’re offsetting it via cost controls and pricing.
CEO Larry Culp: “We support promoting free and fair trade… we commend the administration for the U.S.-U.K. trade deal.” Departures grew ~4% in Q2, but they’re taking a conservative low single-digit view for full-year 2025 due to macro dynamics.
How much upside from here?
GE Aerospace is now up 1.33% pre-market and the stock price of $269 is already above the consensus Wall Street target, but one analyst expects the stock to hit $300.
Last month, Deutsche Bank moved its price target from $260 to $300, pointing to a leap in engine deliveries that could be up 15% to 20%.
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 slightly 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 analyzing 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 consensus 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.
© Canva
Top Gaining Stocks
Top Losing Stocks