GE Aerospace has raised its 2025 guidance as airlines continue to stabilising demand after a turbulent start to the year, driven by tariff policies and geopolitical tensions.
The company now expects its adjusted revenue growth for the year to be up mid-teens, as opposed to prior guidance of low double digit growth. The engine manufacturer's operating profit is expected to fall between $8.2bn and $8.5bn for the year, up from $7.8bn to $8.2bn. Adjusted earnings per share (EPS) are expected to be $5.60 to $5.80, raised from $5.10 to $5.45 per share.
In addition, the company expects to generate a free cash flow of between $6.5 and $6.9bn — raised from $6.3 to $6.8bn.
The company recorded total revenues of $11bn for the second quarter, climbing 21% compared to a year prior. Profits soared 65% to $2.4bn. For its commercial engines segment, orders climbed 28% to $11.7bn, with revenues up 30% to $8bn and operating profits climbed 33% to $2.2bn. Operating profit margin was up 50 basis points to 27.9%.
“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," said GE Aerospace chairman and CEO Lawrence Culp. "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.”
The company expects double digit compound annual growth rate (CAGR) through 2028, up from its previous high single digit forecast. The 2028 outlook also expects an operating profit of around $11.5bn, raised from around $10bn. The company also now predicts an adjusted EPS of around $8.40, having not previously given an estimate. Free cash flow is expected to be around $8.5bn.
GE Aerospace said it expects to increase capital returns to shareholders from 2024 to 2026 by 20% to around $24bn, expecting to “sustainably return at least 70% of free cash flow via dividend and buybacks beyond 2026”.