GE Aerospace Q3 2025 Earnings: Strong Performance and Raised Full-Year Guidance

Outstanding Q3 2025 Financial Results

• 🚀 Revenue and profit both grew by 26% in Q3 2025, reaching $11.3 billion and $2.3 billion respectively.
• 📈 Adjusted EPS increased by 44% to $1.66, and free cash flow rose by 30% to $2.4 billion, demonstrating strong financial health.
• ✅ Due to robust year-to-date performance, GE Aerospace raised its full-year guidance across revenue, operating profit, EPS, and free cash flow.
• 🎯 The company reported a $175 billion backlog, with orders up 2% in Q3 and 13% year-to-date, driven by commercial services.

Operational Excellence with Flight Deck

• 💡 The Flight Deck operating model is central to turning strategy into results, accelerating delivery, and meeting customer demand.
• 🛠️ Significant supply chain improvements were achieved by applying Flight Deck tools like problem-solving, 5S, and standard work with critical suppliers, leading to improved first-time yields and increased output.
• 📊 Material input from priority suppliers grew 35% year-over-year and high single digits sequentially, with over 95% of committed volume shipped for the third consecutive quarter.
• ⏱️ Efforts to reduce turnaround times are progressing, including a 30% reduction in engine disassembly time at the Malaysia MRO shop.

Commercial & Defense Segment Highlights

• ✈️ Commercial Engines and Services (CES) saw services orders up 32% and revenue up 28%, with operating profit growing 35% year-on-year.
• ⚙️ Total engine deliveries increased by 41% year-over-year, including a record 40% rise in LEAP deliveries in Q3, now projected to grow over 20% for the full year.
• 🛡️ Defense and Propulsion Technologies (DPT) delivered strong results with revenue up 26% and profit up 75%, driven by an 83% increase in defense engine output.
• 🤝 Key customer wins included Korean Air's largest fleet commitment for 103 Boeing aircraft and Cathay Pacific's commitment for 14 additional GE9X-powered 777-9s.

Advancing Engine Technology & Durability

• 🔬 GE Aerospace is applying lessons learned from GENX durability enhancements to the LEAP engine, aiming for similar levels of improvement.
• 🧠 Investments are being made in LEAP services technologies, such as analytic-based maintenance for optimal shop visits and repairs to reduce reliance on new materials.
• 🧪 The GE9X engine is undergoing its second dust test, building on over 30,000 cycles of testing, making it the most tested engine in the company's history.
• 🌱 Early dust testing on next-generation HPT blades for the Rise compact core development marks the earliest such testing in development, with potential applications for today's fleet.

Strategic Growth and Future Outlook

• 💰 The company is investing nearly $1 billion in its supply chain to expand capacity and grow its MRO network, including the new ZOS MRO facility in Poland.
• 🤝 Capital allocation remains balanced, prioritizing reinvestment in the business, returning capital to shareholders, and selective M&A, such as the $300 million investment in Beta Technologies.
• 📈 For 2026, the commercial services business is expected to continue strong growth, with double-digit increases projected for engine shop visits, though overall growth rates may normalize from 2025's exceptional levels.
• 🌍 GE Aerospace maintains its leadership positions and competitive advantages with the industry's largest fleet (78,000 engines) and over 2.3 billion flight hours of experience.