GE Aerospace (GE) Beats Q3 2025 Estimates, Lifts 2025 Outlook

GE Aerospace (NYSE:GE) has reported an impressive third quarter for 2025, surpassing market expectations in terms of revenue and earnings per share. The company has also updated its guidance for the full year, reflecting its confidence in continued growth and operational efficiency.

Commercial and Defense Segments Deliver Double-Digit Growth in Q3

The third quarter of 2025 has been a remarkable period for GE Aerospace, as the company reported a total revenue of $12.2 billion, marking a 24% increase compared to the same period last year. This figure significantly surpasses the market expectation of $10.33 billion. The adjusted revenue, which excludes certain one-time items, rose by 26% to $11.3 billion. The company’s profit also saw a substantial increase, with a reported GAAP profit of $2.5 billion, a 33% rise from the previous year. The operating profit stood at $2.3 billion, reflecting a 26% increase.

Earnings per share (EPS) for the quarter were particularly noteworthy. The continuing EPS came in at $2.04, a 31% increase from the previous year, while the adjusted EPS was $1.66, representing a 44% rise. These figures exceeded the market’s expectations, which had anticipated an EPS of $1.46. The company’s ability to outperform expectations is attributed to its robust demand and improved output, particularly in its Commercial Engines & Services and Defense & Propulsion Technologies segments.

The Commercial Engines & Services segment reported a 27% increase in revenue, driven by a 28% growth in services and a 22% rise in equipment revenue. The segment’s operating profit grew by 35%, bolstered by higher services volume and favorable pricing. Meanwhile, the Defense & Propulsion Technologies segment posted a 26% increase in revenue, with a 75% rise in operating profit due to higher volume and improved pricing. These results highlight GE Aerospace’s strong operational execution and market position.

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GE Aerospace Boosts 2025 Forecasts for Revenue, Profit, and Cash Flow

Looking ahead, GE Aerospace has raised its full-year guidance for 2025, reflecting its confidence in sustained growth and operational efficiency. The company now expects adjusted revenue growth in the high-teens, up from its previous guidance of mid-teens. This optimistic outlook is driven by strong demand and improved output across its business segments.

The company has also increased its guidance for operating profit, now expecting it to be between $8.65 billion and $8.85 billion, up from the previous range of $8.2 billion to $8.5 billion. This upward revision is supported by higher services revenue and a favorable services mix. Additionally, GE Aerospace has raised its adjusted EPS guidance to a range of $6.00 to $6.20, up from the prior range of $5.60 to $5.80.

Free cash flow is another area where GE Aerospace has shown confidence, raising its guidance to a range of $7.1 billion to $7.3 billion, compared to the previous range of $6.5 billion to $6.9 billion. The company expects to maintain a free cash flow conversion rate of over 100%, underscoring its ability to generate cash efficiently. GE Aerospace’s updated guidance reflects its commitment to delivering strong financial performance and creating value for its shareholders.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.