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GE Aerospace (GE) delivered a stellar 2Q25, handily surpassing Wall Street’s EPS and revenue expectations, while also raising its FY25 guidance for EPS and revenue growth. The beat-and-raise performance was propelled by broad-based strength across the organization, with the Commercial Engines & Services (CES) segment shining due to a 29% surge in services revenue, driven by a more than 20% year-over-year increase in shop visits and enhanced output. The growth in shop visits reflects robust air travel demand, as airlines extend the life of older, less fuel-efficient aircraft amid supply chain constraints limiting new plane deliveries, boosting aftermarket services as carriers prioritize maintenance to keep fleets operational.

• The CES segment showcased remarkable momentum, with orders soaring 28% to $11.69 bln, underpinned by both robust services demand and a 35% spike in equipment revenue. The equipment revenue surge was fueled by strong unit volume growth, particularly in LEAP engine deliveries, supported by improved supply chain dynamics and favorable pricing strategies. GE’s efforts to address supply chain bottlenecks through its FLIGHT DECK lean operating model have significantly enhanced material inputs, enabling higher production rates to meet airframer and airline demand.
• In the smaller Defense & Propulsion Technologies (DPT) segment, orders jumped 24% to $2.9 bln, reflecting strong demand in both Defense & Systems and Propulsion & Additive Technologies. Key drivers included significant contracts, such as a $1.1 bln order from the U.S. Army for T700 engine production through 2029 and commitments for T700 engines to power Poland’s anticipated acquisition of 96 Boeing Apache Guardian helicopters.
• The 38% increase in LEAP deliveries in Q2, primarily for commercial applications, indirectly supported DPT by freeing up production capacity and highlighting GE’s ability to scale output across segments despite ongoing supply chain challenges. These wins underscore GE’s growing footprint in global defense markets and its ability to capitalize on long-term contracts.
• GE raised its FY25 guidance, projecting adjusted EPS of $5.60–$5.80 (up from $5.15–$5.45) and mid-teens revenue growth, while also boosting its 2028 outlook to a double-digit revenue CAGR from 2024–2028 (previously high single-digit from 2025–2028) and operating profit of approximately $11.5 billion, compared to the prior $10.0 billion target. The upgraded 2028 forecast is driven by a robust commercial services backlog exceeding $140 bln, continued momentum in shop visits, and anticipated growth in LEAP and other engine deliveries as supply chain constraints ease. Investments in MRO capacity, including a $1 bln commitment over five years and the opening of a Services Technology Acceleration Center in Ohio, position the company to capitalize on aftermarket demand.

GE is firing on all cylinders, with robust demand in both commercial airline and defense markets driving exceptional performance. The company’s ability to navigate supply chain challenges while capitalizing on strong services and equipment growth underscores its resilience and strategic focus. With a burgeoning backlog and operational improvements via FLIGHT DECK, GE is well-positioned for sustained growth through 2028.