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GE Aerospace Earnings Beat Estimates in Q1, Surge 60% Y/Y
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GE Aerospace (GE - Free Report) reported first-quarter 2025 results, wherein both revenues and earnings surpassed the Zacks Consensus Estimate.
It is worth noting that in April 2024, GE Aerospace emerged as a separate public company, following the spin-off of GE Vernova Inc. (GEV - Free Report) from General Electric.
Inside GE’s Headlines
The company’s first-quarter adjusted earnings were $1.49 per share, which beat the Zacks Consensus Estimate of $1.26. The bottom line surged 60% year over year.
Total revenues were $9.9 billion, indicating a year-over-year increase of 11%. Total orders grew 12% on a year-over-year basis to $12.3 billion.
Adjusted revenues were $9 billion, marking a year-over-year rise of 11%. The metric beat the consensus estimate of $8.97 billion. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Revenues from the company’s Commercial Engines & Services business jumped 14.5% year over year to $6.98 billion. The Zacks Consensus Estimate for the business’ revenues was pegged at $7.01 billion. The results were driven by higher shop visit work scope, increased spare parts and price. Total orders in the segment rose 15% year over year to $9.6 billion.
The Defense & Propulsion Technologies segment’s revenues totaled $2.32 billion, up 1% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.35 billion. Results benefited from the strong momentum in the defense & propulsion technologies business. Total orders in the segment were flat year over year at $3 billion.
GE’s Margin Profile
GE Aerospace’s cost of sales (comprising costs of equipment and services sold) grew 4.3% year over year at $6 billion. Selling, general and administrative expenses decreased 14.6% year over year to $876 million. Research and development expenses totaled $359 million, reflecting a year-over-year rise of 33%.
GE Aerospace’s adjusted operating profit was $2.1 billion, up 38.4% year over year. The margin was 23.8%, up 460 basis points.
GE Aerospace’s Balance Sheet & Cash Flow
Exiting the first quarter of 2025, GE Aerospace had cash, cash equivalents and restricted cash of $12.4 billion compared with $13.6 billion at the end of December 2024. The company’s long-term borrowings were $17.5 billion compared with $17.2 billion at the end of December 2024.
In the first quarter, the adjusted free cash flow was $1.4 billion compared with $1.7 billion in the year-ago period.
In the same period, GE rewarded its shareholders with a dividend payment of $302 million. The company repurchased shares for approximately $1.97 billion during the same period.
GE’s Outlook
For 2025, GE expects adjusted revenues to grow in the low-double-digit range from the year-ago period's actual. Operating profit is estimated to be in the band of $7.8-$8.2 billion. Adjusted earnings are predicted to be in the range of $5.10-$5.45 per share. The free cash flow is anticipated to be in the band of $6.3-$6.8 billion, with the conversion rate projected to be more than 100%.
GE Aerospace expects the Commercial Engines & Services segment’s revenues to grow in the mid-teen digits, whereas operating profit is anticipated to be in the band of $7.6-$7.9 billion. For the Defense & Propulsion Technologies segment, revenues are projected to increase in the mid to high-single-digit range, whereas operating profit is anticipated to be in the band of $1.1-$1.3 billion.
AstronicsCorporation (ATRO - Free Report) currently sports a Zacks Rank of 1. ATRO delivered an earnings surprise of 128.6% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for Astronics’ 2025 earnings has increased 3.5%.
AerSaleCorporation (ASLE - Free Report) presently sports a Zacks Rank 1. ASLE delivered earnings surprise of 28.6% in the last reported quarter. In the past 60 days, the consensus estimate for AerSale’s 2025 earnings has increased 32.1%.
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GE Aerospace Earnings Beat Estimates in Q1, Surge 60% Y/Y
GE Aerospace (GE - Free Report) reported first-quarter 2025 results, wherein both revenues and earnings surpassed the Zacks Consensus Estimate.
It is worth noting that in April 2024, GE Aerospace emerged as a separate public company, following the spin-off of GE Vernova Inc. (GEV - Free Report) from General Electric.
Inside GE’s Headlines
The company’s first-quarter adjusted earnings were $1.49 per share, which beat the Zacks Consensus Estimate of $1.26. The bottom line surged 60% year over year.
Total revenues were $9.9 billion, indicating a year-over-year increase of 11%. Total orders grew 12% on a year-over-year basis to $12.3 billion.
Adjusted revenues were $9 billion, marking a year-over-year rise of 11%. The metric beat the consensus estimate of $8.97 billion. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
GE Aerospace Price, Consensus and EPS Surprise
GE Aerospace price-consensus-eps-surprise-chart | GE Aerospace Quote
GE’s Segmental Discussion
Revenues from the company’s Commercial Engines & Services business jumped 14.5% year over year to $6.98 billion. The Zacks Consensus Estimate for the business’ revenues was pegged at $7.01 billion. The results were driven by higher shop visit work scope, increased spare parts and price. Total orders in the segment rose 15% year over year to $9.6 billion.
The Defense & Propulsion Technologies segment’s revenues totaled $2.32 billion, up 1% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.35 billion. Results benefited from the strong momentum in the defense & propulsion technologies business. Total orders in the segment were flat year over year at $3 billion.
GE’s Margin Profile
GE Aerospace’s cost of sales (comprising costs of equipment and services sold) grew 4.3% year over year at $6 billion. Selling, general and administrative expenses decreased 14.6% year over year to $876 million. Research and development expenses totaled $359 million, reflecting a year-over-year rise of 33%.
GE Aerospace’s adjusted operating profit was $2.1 billion, up 38.4% year over year. The margin was 23.8%, up 460 basis points.
GE Aerospace’s Balance Sheet & Cash Flow
Exiting the first quarter of 2025, GE Aerospace had cash, cash equivalents and restricted cash of $12.4 billion compared with $13.6 billion at the end of December 2024. The company’s long-term borrowings were $17.5 billion compared with $17.2 billion at the end of December 2024.
In the first quarter, the adjusted free cash flow was $1.4 billion compared with $1.7 billion in the year-ago period.
In the same period, GE rewarded its shareholders with a dividend payment of $302 million. The company repurchased shares for approximately $1.97 billion during the same period.
GE’s Outlook
For 2025, GE expects adjusted revenues to grow in the low-double-digit range from the year-ago period's actual. Operating profit is estimated to be in the band of $7.8-$8.2 billion. Adjusted earnings are predicted to be in the range of $5.10-$5.45 per share. The free cash flow is anticipated to be in the band of $6.3-$6.8 billion, with the conversion rate projected to be more than 100%.
GE Aerospace expects the Commercial Engines & Services segment’s revenues to grow in the mid-teen digits, whereas operating profit is anticipated to be in the band of $7.6-$7.9 billion. For the Defense & Propulsion Technologies segment, revenues are projected to increase in the mid to high-single-digit range, whereas operating profit is anticipated to be in the band of $1.1-$1.3 billion.
GE’s Zacks Rank
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Astronics Corporation (ATRO - Free Report) currently sports a Zacks Rank of 1. ATRO delivered an earnings surprise of 128.6% in the last reported quarter. In the past 60 days, the Zacks Consensus Estimate for Astronics’ 2025 earnings has increased 3.5%.
AerSale Corporation (ASLE - Free Report) presently sports a Zacks Rank 1. ASLE delivered earnings surprise of 28.6% in the last reported quarter.
In the past 60 days, the consensus estimate for AerSale’s 2025 earnings has increased 32.1%.