GE Aerospace (NYSE:GE) shares climbed 3.2% in premarket trading Thursday after the company posted a strong second-quarter performance and raised its full-year outlook, driven by a surge in commercial services and operational improvements.
The company reported adjusted earnings per share of $1.66 for the quarter, comfortably beating analyst projections of $1.40. Revenue reached $10.15 billion, surpassing the $9.54 billion consensus estimate and marking a 23% year-over-year increase. Free cash flow came in at $2.1 billion, nearly double the figure from the same period in 2024—up 92%.
“The GE Aerospace team delivered an excellent second quarter with free cash flow nearly doubling and more than 20% growth in orders, revenue, operating profit, and EPS,” said GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. “We are raising our 2025 guidance and 2028 outlook, with our operating performance and robust commercial services outlook underpinning our higher revenue, earnings, and cash growth expectations.”
Much of the quarter’s strength came from the Commercial Engines & Services segment, which generated $8.0 billion in revenue, up 30% year-over-year. That included a 29% increase in services and a 35% rise in equipment-related revenue. The Defense & Propulsion Technologies segment posted 7% growth to reach $2.6 billion in revenue.
In response to the solid results, GE Aerospace updated its 2025 guidance, now forecasting adjusted EPS between $5.60 and $5.80. That’s an upward revision from the prior range of $5.10 to $5.45 and aligns with the analyst average estimate of $5.63. Revenue growth for the year is now expected to be in the mid-teens percentage range, up from earlier low-double-digit projections.
Looking further ahead, the company also raised its 2028 forecast. It now targets $11.5 billion in operating profit and $8.5 billion in free cash flow—each $1.5 billion higher than previously anticipated.
In addition to its improved financial outlook, GE Aerospace revealed plans to increase shareholder returns. From 2024 through 2026, it intends to return $24 billion in capital, 20% more than earlier planned. The company aims to maintain a return of at least 70% of free cash flow to investors through dividends and buybacks after 2026.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.