GE Aerospace announces first quarter 2025 results

First quarter 2025:

• Total orders of $12.3B, +12 per cent
• Total revenue (GAAP) of $9.9B, +11 per cent; adjusted revenue* $9.0B, +11 per cent
• Profit (GAAP) of $2.2B, +13 per cent; operating profit* $2.1B, +38 per cent
• Profit margin (GAAP) of 22.6 per cent, +40 bps; operating profit margin* 23.8 per cent, +460 bps
• Continuing EPS (GAAP) of $1.83, +16 per cent; adjusted EPS* $1.49, +60 per cent
• Cash from Operating Activities (GAAP) of $1.5B, (5) per cent; free cash flow* $1.4B, (14) per cent

GE Aerospace announced results today for the first quarter ending March 31, 2025.

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 per cent. 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's key actions and highlights included:

• Drove 8 per cent sequential increase in material inputs from priority suppliers by using FLIGHT DECK to address supply chain constraints. This supported services revenue growth of 17 per cent in Commercial Engines & Services (CES) and Defense units up 5 per cent year-over-year.
• Announced plans to invest nearly $1 billion in U.S. manufacturing and technology to enhance production, improve capabilities, support the future of flight, and hire ~5,000 U.S. workers.
• Secured engine commitments with ANA Holdings for LEAP and GEnx engines, Malaysia Aviation Group for LEAP engines and Korean Air for GEnx and GE9X engines, as well as a contract from the U.S. Air Force valued up to $5 billion for F110-GE-129 engines.
• Achieved important development and testing milestones on two advanced engines for the U.S. war fighter: T901 successfully powered a Black Hawk helicopter during ground runs and a Detailed Design Review of the X102 was completed.
• Completed a second endurance test campaign on high-pressure turbine blades for the RISE development program, demonstrating improved durability and fuel efficiency–key customer priorities for the future of flight.
• Offsetting tariff impact by optimizing operations, leveraging existing programs and strategies, taking measures to control cost, and implementing pricing actions.

Total Company Results

Three Months Ended March 31

Dollars in millions; per-share amounts in dollars, diluted	2025	2024	Year on Year
GAAP Metrics
Total Revenue	$9,935	$8,955	11 %
Profit	2,245	1,987	13 %
Profit Margin	22.6 %	22.2 %	40 bps
Continuing EPS	1.83	1.58	16 %
Cash from Operating Activities (CFOA)	1,543	1,629	(5) %
Non-GAAP Metrics
Adjusted Revenue	$9,001	$8,076	11 %
Operating Profit	2,146	1,550	38 %
Operating Profit Margin	23.8 %	19.2 %	460 bps
Adjusted EPS	1.49	0.93	60 %
Free Cash Flow (FCF)	1,441	1,669	(14) %

GE Aerospace Full Year 2025 Guidance

For 2025, GE Aerospace is maintaining the following total company and business specific guidance:

	2024	2025 Guide
Adjusted Revenue* Growth Adjusted Revenue*	+10% $35.1B	LDD
Operating Profit* Operating profit margin*	$7.3B 20.7%	$7.8 - $8.2B
Adjusted EPS*	$4.60	$5.10 - $5.45
Free Cash Flow* FCF* conversion-a)	$6.1B ~121%	$6.3 - $6.8B >100%

• Commercial Engines & Services (CES): Continue to expect revenue growth in the mid-teens, driven by services growth of low-double-digits to mid-teens, and equipment growth of high-teens. Expect operating profit at $7.6-$7.9 billion.
• Defense & Propulsion Technologies (DPT): Continue to expect revenue growth in the mid- to high-singledigit range, and operating profit of $1.1-$1.3 billion.
• Corporate: Continue to expect costs to be less than $1 billion.

2025 Guidance Assumptions: GE Aerospace's full-year 2025 guidance now assumes impact of announced tariffs net of actions, full-year departures^-b) growth of low-single-digits vs. prior growth of mid-single-digits, and delayed spare engine deliveries. Guidance does not assume changes in airframer delivery schedules, further tariff escalation or a global economic recession.

Results by Reporting Segment

The following discussions and variance explanations are intended to reflect management's view of the relevant comparisons of financial results.

Commercial Engines & Services

Three months ended March 31

(Dollars in millions)	2025	2024	Year on Year
Orders	$9,583	$8,315	15 %
Revenue	6,977	6,095	14 %
Operating profit/(loss)	1,920	1,419	35 %
Operating profit/(loss) margin	27.5 %	23.3 %	420 bps

For the quarter, orders of $9.6 billion increased 15 per cent, with services increasing 31 per cent. Revenue of $7.0 billion was up 14 per cent with services growing 17 per cent, driven by more than 20 per cent growth in spare parts revenue and an 11 per cent increase in internal shop visit revenue. Equipment revenue grew 9 per cent, as customer mix, in addition to price, more than offset lower units. Profit of $1.9 billion was up 35 per cent from services volume, mix, and price, which more than offset inflation, investments and a year-over-year change in estimated profitability on long-term service agreements, including estimated tariff impact. Margins expanded 420 basis points.

Defense & Propulsion Technologies

Three months ended March 31

(Dollars in millions)	2025	2024	Year on Year
Orders	$3,031	$3,029	— %
Revenue	2,324	2,312	1 %
Operating profit/(loss)	296	256	16 %
Operating profit/(loss) margin	12.7 %	11.1 %	160 bps

For the quarter, orders of $3.0 billion were flat year-over-year with services up 14 per cent and equipment down on a tough compare. Revenue of $2.3 billion grew 1 per cent. Defense & Systems revenue was flat as unit growth and price were offset by lower services. Propulsion & Additive Technologies revenue was up 1 per cent as services volume and price offset a planned slower start to equipment. Profit of $296 million was up 16 per cent as customer mix, productivity and price were partially offset by self-funding next-generation investments and inflation. Margins were up 160 basis points.

Financial Measures That Supplement GAAP

We believe that presenting non-GAAP financial measures provides management and investors useful measures to evaluate performance and trends of the total company and its businesses. This includes adjustments in recent periods to GAAP financial measures to increase period-to-period comparability following actions to strengthen our overall financial position and how we manage our business.

In addition, management recognizes that certain non-GAAP terms may be interpreted differently by other companies under different circumstances. In various sections of this report we have made reference to the following non-GAAP financial measures in describing our (1) revenue, specifically Adjusted revenue, (2) profit, specifically Operating profit and Operating profit margin; Adjusted net income (loss) and Adjusted earnings (loss) per share (EPS), (3) cash flows, specifically free cash flow (FCF), and (4) guidance, specifically 2025 Operating profit, 2025 Adjusted EPS and 2025 FCF.

The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures follow. Certain columns, rows or percentages within these reconciliations may not add or recalculate due to the use of rounded numbers. Totals and percentages presented are calculated from the underlying numbers in millions.

Beginning in the first quarter of 2025, we changed the terminology used to report our GAAP earnings from "Earnings" to "Net income" and our non-GAAP earnings from "Adjusted earnings" to "Adjusted net income." The change in terminology does not impact the amounts reported in the financial statements.

ADJUSTED REVENUE, OPERATING PROFIT AND PROFIT MARGIN (NON-GAAP) Three months ended March 31

(Dollars in millions) 2025 2024 V% Total revenue (GAAP) Less: Insurance revenue $ 9,935 934 $ 8,955 879 11 % Adjusted revenue (Non-GAAP) Less: Insurance cost and expenses Less: U.S. tax equity cost and expenses Less: interest and other financial charges Less: non-operating benefit cost (income) Less: restructuring & other Less: separation costs Add: noncontrolling interests $ 7,992 728 5 210 (201) 1 51 (5) $ 7,974 679 — 263 (217) 70 259 3 — % Adjusted costs (Non-GAAP) $ 7,192 $ 6,923 4 % Other income (loss) (GAAP) Less: U.S. tax equity Less: gains (losses) on retained and sold ownership interests and other equity securities Less: gains (losses) on purchases and sales of business interests $ 302 (42) 7 — $ 1,007 (35) 635 10 (70) % Adjusted other income (loss) (Non-GAAP) $ 337 $ 397 (15) % Profit (loss) (GAAP) Profit (loss) margin (GAAP) Operating profit (loss) (Non-GAAP) Operating profit (loss) margin (Non-GAAP) $ 2,245 22.6 % $ 2,146 23.8 % $ 1,987 22.2 % $ 1,550 19.2 % 13 % 40 bps 38 % 460 bps

We believe that adjusting revenue provides management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of revenue from our run-off insurance operations. We believe that adjusting profit to exclude the effects of items that are not closely associated with ongoing operations provides management and investors with a meaningful measure that increases the period-to-period comparability. Gains (losses) and restructuring and other items are impacted by the timing and magnitude of gains associated with dispositions, and the timing and magnitude of costs associated with restructuring and other activities. We also use Adjusted revenue* and Operating profit* as performance metrics at the company level for our annual executive incentive plan for 2025.

ADJUSTED NET INCOME (LOSS) (NON-GAAP) (In millions, Per-share amounts in dollars) Three months ended March 31 2025 2024

Income EPS Income EPS Net income (loss) from continuing operations (GAAP) $ 1,967 $ 1.83 $ 1,741 $ 1.58 Insurance net income (loss) (pre-tax) Tax effect on Insurance net income (loss)(b) 207 24 0.19 0.02 201 (43) 0.18 (0.04) Less: Insurance net income (loss) (net of tax) U.S. tax equity net income (loss) (pre-tax) Tax effect on U.S. tax equity net income (loss) 231 (55) 63 0.21 (0.05) 0.06 158 (43) 58 0.14 (0.04) 0.05 Less: U.S. tax equity net income (loss) (net of tax) Non-operating benefit (cost) income (pre-tax) (GAAP) Tax effect on non-operating benefit (cost) income 9 201 (42) 0.01 0.19 (0.04) 15 217 (46) 0.01 0.20 (0.04) Less: Non-operating benefit (cost) income (net of tax) Gains (losses) on purchases and sales of business interests (pre-tax) Tax effect on gains (losses) on purchases and sales of business interests 159 — 3 0.15 — — 171 10 7 0.16 0.01 0.01 Less: Gains (losses) on purchases and sales of business interests (net of tax) Gains (losses) on retained and sold ownership interests and other equity securities (pre-tax) Tax effect on gains (losses) on retained and sold ownership interests and other equity securities(a)(b) 3 7 1 — 0.01 — 17 635 (1) 0.02 0.58 — Less: Gains (losses) on retained and sold ownership interests and other equity securities (net of tax) Restructuring & other (pre-tax) Tax effect on restructuring & other 8 (1) — 0.01 — — 633 (70) 15 0.57 (0.06) 0.01 Less: Restructuring & other (net of tax) Separation costs (pre-tax) Tax effect on separation costs (1) (51) 10 — (0.05) 0.01 (55) (259) 34 (0.05) (0.23) 0.03 Less: Separation costs (net of tax) (41) (0.04) (225) (0.20) Adjusted net income (loss) (Non-GAAP) $ 1,601 $ 1.49 $ 1,026 $ 0.93

(a) Includes tax benefits available to offset the tax on gains (losses) on equity securities.
(b) Includes related tax valuation allowances. Tax effect on Insurance net income includes valuation allowances for 2025.

Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.

We believe that Adjusted net income* provides management and investors with useful measures to evaluate the performance of the total company and increased period-to-period comparability, as well as a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding items that are not closely related with ongoing operations. We also use Adjusted EPS* as a performance metric at the company level for our performance stock units granted in 2025.

FREE CASH FLOW (FCF) (NON-GAAP) Three months ended March 31

(In millions) 2025 2024 V% Cash flows from operating activities (CFOA) (GAAP) $ 1,543 $ 1,629 (5) % Add: gross additions to property, plant and equipment and internal-use software Less: separation cash expenditures Less: Corporate & Other restructuring cash expenditures (208) (76) (31) (204) (165) (79)   Free cash flow (FCF) (Non-GAAP) $ 1,441 $ 1,669 (14) %

We believe investors may find it useful to compare free cash flow* performance without the effects of separation cash expenditures and Corporate & Other restructuring cash expenditures (associated with the separation-related program announced in the fourth quarter of 2022). We believe this measure will better allow management and investors to evaluate the capacity of our operations to generate free cash flow. We also use FCF* as a performance metric at the company level for our annual executive incentive plan and performance stock units granted in 2025.

2025 GUIDANCE: 2025 OPERATING PROFIT (NON-GAAP)

We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for Operating profit* in 2025 without unreasonable effort due to the uncertainty of timing of any gains or losses related to acquisitions & dispositions and the timing and magnitude of restructuring expenses. Although we have attempted to estimate the amount of gains and restructuring charges for the purpose of explaining the probable significance of these components, this calculation involves a number of unknown variables, resulting in a GAAP range that we believe is too large and variable to be meaningful.

2025 GUIDANCE: 2025 ADJUSTED EPS (NON-GAAP)

We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for Adjusted EPS* in 2025 without unreasonable effort due to the uncertainty of timing of any gains or losses related to acquisitions & dispositions and the timing and magnitude of restructuring expenses. Although we have attempted to estimate the amount of gains and restructuring charges for the purpose of explaining the probable significance of these components, this calculation involves a number of unknown variables, resulting in a GAAP range that we believe is too large and variable to be meaningful.

2025 GUIDANCE: 2025 FCF (NON-GAAP)

We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for free cash flow* in 2025 without unreasonable effort due to the uncertainty of timing for separation and restructuring related cash expenditures.

 

* Non-GAAP Financial Measure
(a - FCF* conversion: FCF* / adjusted net income*
(b - GE Aerospace/CFM departures