Korean Air selected GEnx and GE9X engines to power their new fleet of Boeing 787-10 and 777-9 aircraft, enhancing performance and efficiency for their long haul operations.
GE Aerospace released its first quarter 2025 financial results today. We encourage you to read the full materials and listen to our earnings call at 7:30 AM EDT.
Key highlights of GE Aerospace's performance for the first quarter:
- Total orders of $12.3B, +12%
- Total revenue (GAAP) of $9.9B, +11%; adjusted revenue* $9.0B, +11%
- Profit (GAAP) of $2.2B, +13%; operating profit* $2.1B, +38%
- Profit margin (GAAP) of 22.6%, +40 bps; operating profit margin* 23.8%, +460 bps
- Continuing EPS (GAAP) of $1.83, +16%; adjusted EPS* $1.49, +60%
- Cash from Operating Activities (GAAP) of $1.5B, (5)%; free cash flow* $1.4B, (14)%
GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. said, “GE Aerospace had a strong start to 2025 with orders and revenue up double digits, driven by commercial services, and adjusted EPS up 60%. We continue to drive improvements through FLIGHT DECK, tackling supply chain constraints head on to accelerate deliveries throughout 2025.”
Culp continued, "The macroeconomic dynamics we are operating in today require us to take a number of strategic actions, such as controlling costs, and leveraging available trade programs. Based on what we know today, these actions, along with our solid first quarter and commercial services backlog of over $140 billion, enable us to maintain our full-year guidance."
GE Aerospace delivered significant top and bottom-line growth in the first quarter. Orders were up 12% and adjusted revenue* was up 11%, with double-digit growth in both services and equipment. Operating profit* grew 38% driving adjusted EPS* of $1.49, up 60%. Free cash flow* was $1.4 billion.
We saw continued demand for our services and products. At Commercial Engines & Services (CES), we secured a significant engine commitment from ANA for more than 75 LEAP engines to power their fleet of 13 Airbus A321neo and up to 22 Boeing 737 MAX aircraft. ANA also selected our GEnx engines to power their purchase of 18 Boeing 787-9 aircraft. Additionally, we received a commitment from Malaysia Aviation Group for 60 CFM LEAP engines to power 30 Boeing 737 MAX aircraft. In widebody, Korean Air announced an agreement for up to 30 Boeing 787-10s and 20 777-9s with our GEnx and GE9X engines underwing.
Meanwhile, in Defense & Propulsion Technologies (DPT), we received a F110 contract from the U.S. Air Force valued up to $5 billion. We also completed the initial ground runs for the T901 engine on a U.S. Army Black Hawk helicopter and completed the Detailed Design Review of the XA102 adaptive cycle engine, working toward production of a full-scale model.
Shifting to 2025, we are holding our guidance across the board — we expect low double-digit adjusted revenue growth*, operating profit* of $7.8 to $8.2 billion, adjusted EPS* of $5.10 to $5.45 and free cash flow* of $6.3 to $6.8 billion. Further breaking down our assumptions:
- Tariffs: Heightened tariff levels will result in additional costs for both GE Aerospace and our suppliers, and we’re taking several strategic and operational actions, such as leveraging available trade programs and controlling cost, to mitigate the impact.
- Macro environment: We now expect full-year departures-b) to grow low-single digits, down from mid-single digits, as we're taking a more cautious approach and embedding a slower second half in our estimate.
- Excluded: Our guide does not assume changes in airframer delivery schedules, further tariff escalation or a global economic recession.
While the broader environment is uncertain and we are watching demand closely, we’re operating from a position of strength. The actions we’re taking, combined with our robust backlog, position us well maintain our full-year guidance.
Thank you for your continued interest in GE Aerospace,
GE Aerospace Investor Relations team
*Non-GAAP Financial Measure. The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures are included in our first quarter earnings release.
(a-FCF* conversion: FCF* / adjusted net income*
(b-GE Aerospace / CFM departures
This document contains "forward-looking statements." For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see here.