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GE Aerospace (GE) comfortably exceeded expectations for Q3, delivering a robust 44% yr/yr increase in adjusted EPS to $1.66, driven by a 41% surge in engine deliveries. The company benefited from strong global demand for new aircraft engines as commercial air travel continued its sharp post-pandemic rebound.

• FY25 EPS guidance was raised to $6.00–$6.20 from $5.60–$5.80; revenue growth is now expected in the high teens. CFO Rahul Ghai noted the business environment “feels better than Q2.”
• Supply chain constraints limited engine production, delaying shipments and boosting maintenance and service revenue for airlines.
• Commercial Engines & Services: internal shop visits +33%, spare parts +25%, driving 35% profit growth.
• Strong commercial demand highlighted by Korean Air’s 103-aircraft order and Cathay Pacific’s 28-engine agreement.
• Defense & Propulsion: revenue +26% from higher volumes, favorable mix, pricing, and strong demand for military propulsion and next-gen engines.

Briefing.com Analyst Insight:

GE continues to showcase its leadership in both commercial and defense aviation with another stellar quarter that outpaced expectations across nearly every metric. The dual tailwinds of surging aircraft demand and expanded aftermarket revenue are driving operating leverage and margin expansion, even amid supply chain friction. Management’s upbeat tone and raised guidance reinforce confidence that GE is capitalizing on a multi-year upcycle in aviation demand. The defense business, while smaller, is increasingly becoming a steady contributor thanks to modernization initiatives and advanced propulsion contracts. Supply chain normalization and execution on delivery ramp-ups will be key to sustaining momentum, but GE’s trajectory clearly points toward accelerating growth and improving profitability through 2026.