GE Aerospace reports strong Q1 2025 earnings, maintains full-year guidance
GE Aerospace (NYSE:GE) released its Q1 earnings report for the period ending March 31, 2025, reporting significant growth in orders, revenue and adjusted earnings per share.
The company announced orders of $9.6 billion, a 15% increase year-over-year, with services orders rising 31%. Revenue reached $7.0 billion, up 14%, driven by a 17% growth in services, including a 20%+ surge in spare parts revenue and an 11% increase in internal shop visit revenue. Equipment revenue grew 9%, supported by customer mix and pricing, despite lower unit volumes. Total company profit for the quarter reached $1.9 billion, up 35%, driven by services volume, mix and price, which offset inflation, investments and changes in long-term service agreement profitability, including tariff impacts, while operating profit margins expanded by 420 basis points.
In its Commercial Engines & Services (CES) segment, GE Aerospace achieved a 17% revenue growth, while Propulsion & Additive Technologies saw a 1% revenue increase, with profit rising 16% to $296 million and margins improving by 160 basis points. The company utilized its FLIGHT DECK program to address supply chain constraints, achieving an 8% sequential increase in material inputs from priority suppliers, supporting 17% services revenue growth in CES and 5% year-over-year growth in Defense units.
GE Aerospace also announced in its Q1 2025 earnings report a $1 billion investment in US manufacturing and technology to boost production and hire approximately 5,000 US workers. The company secured engine contracts with ANA Holdings, Malaysia Aviation Group and Korean Air for LEAP, GEnx and GE9X engines, alongside a U.S. Air Force contract valued up to $5 billion for F110-GE-129 engines. Development milestones included successful ground runs of the T901 engine on a Black Hawk helicopter, a Detailed Design Review for the X102 engine and a second endurance test for high-pressure turbine blades in the RISE program, demonstrating enhanced durability and fuel efficiency.
The company maintained its 2025 guidance, expecting CES revenue growth in the mid-teens, Defense & Propulsion Technologies revenue growth in the mid- to high-single-digit range and corporate costs below $1 billion. The guidance incorporates tariff impacts, low-single-digit departures growth and delayed spare engine deliveries, but does not account for changes in airframer delivery schedules, further tariff escalation or a global economic recession.
Chairman and CEO H. Lawrence Culp, Jr., stated, “GE Aerospace had a strong start to 2025 with orders and revenue up double digits, driven by commercial services, and adjusted EPS up 60%.”
Culp highlighted the FLIGHT DECK program’s role in tackling supply chain challenges and noted strategic actions, including cost control and trade program utilization, supported by a commercial services backlog exceeding $140 billion, as key to sustaining the 2025 outlook.
The company emphasized its use of non-GAAP financial measures, such as adjusted revenue, operating profit and free cash flow, to clarify performance trends, with terminology updated to “Net income” and “Adjusted net income” starting in Q1 2025. Reconciliations for 2025 guidance metrics were not provided due to uncertainties in the timing of acquisitions, dispositions and restructuring expenses.
This text is a news report summarizing the GE Aerospace Q1 2025 results. The detailed results can be read in the company’s official press release, here.
Featured photo shows the GE Aerospace headquarters complex in Evendale, Ohio, as seen from the I-75, pictured in 2023.
Image Attribution: DigitalIceAge.
Image is available under license CC BY 4.0.
