GE Aerospace (GE) delivered a standout second quarter in 2025, underpinned by broad-based strength across its Commercial and Defense segments, exceptional financial performance, and a more optimistic outlook for both the full year and long term.

Total GAAP revenue rose to $11.0 billion, up a strong 21% year-over-year, while adjusted revenue climbed 23% to $10.2 billion. Profitability surged, with GAAP profit up 65% to $2.39 billion and profit margin expanding by 580 basis points to 21.7%. On an adjusted basis, operating profit rose 23% to $2.34 billion, with a stable margin of 23.0%. Adjusted EPS grew 38% to $1.66, while GAAP EPS increased 56% to $1.87. Notably, free cash flow nearly doubled, jumping 92% to $2.1 billion, highlighting strong operational execution and working capital discipline.

In its Commercial Engines & Services (CES) division, performance was particularly robust. Orders rose 28% to $11.7 billion, while revenue surged 30% to $8.0 billion. Operating profit climbed 33% to $2.23 billion, with margins improving to 27.9%. Growth was fueled by a 29% increase in services revenue—driven by demand for spare parts and shop visits—and a 35% rise in equipment revenue. Total engine deliveries rose 45%, supported by improved supplier performance. Major wins included a landmark deal with Qatar Airways for over 400 GE9X and GEnx engines—the largest widebody engine order in company history—and a commitment from British Airways for 32 GEnx engines. CES now expects high-teens revenue growth and $8.0–$8.2 billion in operating profit for 2025, with double-digit revenue growth projected through 2028.

The Defense & Propulsion Technologies (DPT) segment also contributed solidly. Orders increased 24% to $2.9 billion, and revenue rose 7% to $2.6 billion. Operating profit reached $362 million, up 5%, though margins declined slightly to 14.1%. Defense & Systems revenue advanced 6%, while Propulsion & Additive Technologies grew 9%. Profitability was supported by strong volume and pricing, which offset cost pressures. DPT expects mid- to high-single-digit growth and $1.1–$1.3 billion in operating profit this year.

CEO H. Lawrence Culp, Jr. cited an “excellent” quarter, crediting the FLIGHT DECK initiative for enhancing safety, quality, and supplier performance. Key operational achievements included a 10% sequential improvement in material input at supplier sites, with 95% of committed volume delivered, enabling higher output. GE also advanced R&D efforts with over 350 CFM RISE program tests and announced investments to bolster hypersonic test infrastructure.

Looking ahead, the company raised its 2025 guidance, now forecasting adjusted EPS of $5.60–$5.80, free cash flow of $6.5–$6.9 billion, and operating profit of $8.2–$8.5 billion. The long-term outlook was also boosted, with 2028 operating profit expected at ~$11.5 billion and free cash flow at ~$8.5 billion. GE plans to return at least 70% of free cash flow to shareholders beyond 2026 and increase capital returns by 20% between 2024 and 2026, totaling approximately $24 billion.

In summary, GE Aerospace’s Q2 results reflect strong momentum, with across-the-board growth in revenue, earnings, and cash flow. Backed by a $175 billion backlog, enhanced supplier capabilities, and strategic investments in next-gen technologies, the company is well-positioned for sustained performance and long-term shareholder value creation.