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GE Aerospace Q4 Earnings & Revenues Top Estimates, Increase Y/Y
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Key Takeaways
GE posted Q4 adjusted EPS of $1.57, up 19% year over year, beating estimates on strong revenue growth.
GE's Commercial Engines & Services revenues jumped 24%, driven by higher shop visits, spare parts, and pricing
GE guided for low-double-digit revenue growth in 2026, with higher earnings and free cash flow expected.
GE Aerospace (GE - Free Report) reported fourth-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 fourth-quarter adjusted earnings were $1.57 per share, which beat the Zacks Consensus Estimate of $1.44. The bottom line surged 19% year over year.
Total revenues were $12.7 billion, indicating a year-over-year increase of 18%. Total orders soared 74% on a year-over-year basis to $27 billion.
Adjusted revenues were $11.87 billion, marking a year-over-year increase of 20%. The metric beat the consensus estimate of $11.26 billion.
For 2025, GE Aerospace reported adjusted revenues of $42.3 billion, reflecting an increase of 21% year over year. The company’s adjusted earnings were $6.37 per share, up 38% year-over-year.
GE’s Segmental Discussion in Q4
Revenues from the company’s Commercial Engines & Services business jumped 24% year over year to $9.47 billion. The Zacks Consensus Estimate for the business’ revenues was pegged at $9.09 billion. The results were driven by higher shop visit work scope, increased revenues from spare parts and equipment and favorable pricing. Total orders in the segment rose 76% year over year to $22.8 billion.
The Defense & Propulsion Technologies segment’s revenues totaled $2.84 billion, up 13% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.73 billion. Results benefited from the strong momentum in the Defense & Systems and Propulsion & Additive Technologies businesses. Total orders in the segment increased 61% year over year to $4.57 billion.
GE Aerospace’s cost of sales (comprising costs of equipment and services sold) surged 23.7% year over year at $8.36 billion. Selling, general and administrative expenses decreased 13.8% year over year to $997 million. Research and development expenses totaled $448 million, reflecting a year-over-year rise of 16.4%.
GE Aerospace’s operating profit (non-GAAP) was $2.3 billion, up 14% year over year. The margin was 19.2%, contracting 90 basis points (bps) year over year.
GE Aerospace’s Balance Sheet & Cash Flow
Exiting the fourth 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 $18.8 billion compared with $17.2 billion at the end of December 2024.
In the fourth quarter, the adjusted free cash flow was $1.76 billion compared with $1.53 billion in the year-ago quarter.
GE’s Outlook
For 2026, 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 $9.85-$10.25 billion. Adjusted earnings are predicted to be in the range of $7.10-$7.40 per share. The free cash flow is anticipated to be in the band of $8.0-$8.4 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-teens range, whereas operating profit is anticipated to be in the band of $9.60-$9.90 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 $1.55-$1.65 billion.
A couple of better-ranked stocks from the same space are discussed below:
Huntington Ingalls Industries, Inc. (HII - Free Report) presently carries a Zacks Rank #2 (Buy). Huntington Ingalls’ earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 14.5%. In the past 60 days, the Zacks Consensus Estimate for HII’s 2025 earnings has inched up 0.4%.
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) currently carries a Zacks Rank of 2. Kratos Defense’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 29.2%. In the past 60 days, the Zacks Consensus Estimate for Kratos Defense’s 2025 earnings has been stable.
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GE Aerospace Q4 Earnings & Revenues Top Estimates, Increase Y/Y
Key Takeaways
GE Aerospace (GE - Free Report) reported fourth-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 fourth-quarter adjusted earnings were $1.57 per share, which beat the Zacks Consensus Estimate of $1.44. The bottom line surged 19% year over year.
Total revenues were $12.7 billion, indicating a year-over-year increase of 18%. Total orders soared 74% on a year-over-year basis to $27 billion.
Adjusted revenues were $11.87 billion, marking a year-over-year increase of 20%. The metric beat the consensus estimate of $11.26 billion.
For 2025, GE Aerospace reported adjusted revenues of $42.3 billion, reflecting an increase of 21% year over year. The company’s adjusted earnings were $6.37 per share, up 38% year-over-year.
GE’s Segmental Discussion in Q4
Revenues from the company’s Commercial Engines & Services business jumped 24% year over year to $9.47 billion. The Zacks Consensus Estimate for the business’ revenues was pegged at $9.09 billion. The results were driven by higher shop visit work scope, increased revenues from spare parts and equipment and favorable pricing. Total orders in the segment rose 76% year over year to $22.8 billion.
The Defense & Propulsion Technologies segment’s revenues totaled $2.84 billion, up 13% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.73 billion. Results benefited from the strong momentum in the Defense & Systems and Propulsion & Additive Technologies businesses. Total orders in the segment increased 61% year over year to $4.57 billion.
GE Aerospace Price, Consensus and EPS Surprise
GE Aerospace price-consensus-eps-surprise-chart | GE Aerospace Quote
GE’s Margin Profile
GE Aerospace’s cost of sales (comprising costs of equipment and services sold) surged 23.7% year over year at $8.36 billion. Selling, general and administrative expenses decreased 13.8% year over year to $997 million. Research and development expenses totaled $448 million, reflecting a year-over-year rise of 16.4%.
GE Aerospace’s operating profit (non-GAAP) was $2.3 billion, up 14% year over year. The margin was 19.2%, contracting 90 basis points (bps) year over year.
GE Aerospace’s Balance Sheet & Cash Flow
Exiting the fourth 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 $18.8 billion compared with $17.2 billion at the end of December 2024.
In the fourth quarter, the adjusted free cash flow was $1.76 billion compared with $1.53 billion in the year-ago quarter.
GE’s Outlook
For 2026, 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 $9.85-$10.25 billion. Adjusted earnings are predicted to be in the range of $7.10-$7.40 per share. The free cash flow is anticipated to be in the band of $8.0-$8.4 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-teens range, whereas operating profit is anticipated to be in the band of $9.60-$9.90 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 $1.55-$1.65 billion.
Zacks Rank and Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A couple of better-ranked stocks from the same space are discussed below:
Huntington Ingalls Industries, Inc. (HII - Free Report) presently carries a Zacks Rank #2 (Buy). Huntington Ingalls’ earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 14.5%. In the past 60 days, the Zacks Consensus Estimate for HII’s 2025 earnings has inched up 0.4%.
Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) currently carries a Zacks Rank of 2. Kratos Defense’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 29.2%. In the past 60 days, the Zacks Consensus Estimate for Kratos Defense’s 2025 earnings has been stable.