In This Article:
GE Aerospace GE reported first-quarter 2025 results, wherein both revenues and earnings surpassed the Zacks Consensus Estimate.
It is worth noting that in April 2024, GE Aerospace emerged as a separate public company, following the spin-off of GE Vernova Inc. GEV from General Electric.
Inside GE’s Headlines
The company’s first-quarter adjusted earnings were $1.49 per share, which beat the Zacks Consensus Estimate of $1.26. The bottom line surged 60% year over year.
Total revenues were $9.9 billion, indicating a year-over-year increase of 11%. Total orders grew 12% on a year-over-year basis to $12.3 billion.
Adjusted revenues were $9 billion, marking a year-over-year rise of 11%. The metric beat the consensus estimate of $8.97 billion. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
GE Aerospace Price, Consensus and EPS Surprise
GE Aerospace price-consensus-eps-surprise-chart | GE Aerospace Quote
GE’s Segmental Discussion
Revenues from the company’s Commercial Engines & Services business jumped 14.5% year over year to $6.98 billion. The Zacks Consensus Estimate for the business’ revenues was pegged at $7.01 billion. The results were driven by higher shop visit work scope, increased spare parts and price. Total orders in the segment rose 15% year over year to $9.6 billion.
The Defense & Propulsion Technologies segment’s revenues totaled $2.32 billion, up 1% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.35 billion. Results benefited from the strong momentum in the defense & propulsion technologies business. Total orders in the segment were flat year over year at $3 billion.
GE’s Margin Profile
GE Aerospace’s cost of sales (comprising costs of equipment and services sold) grew 4.3% year over year at $6 billion. Selling, general and administrative expenses decreased 14.6% year over year to $876 million. Research and development expenses totaled $359 million, reflecting a year-over-year rise of 33%.
GE Aerospace’s adjusted operating profit was $2.1 billion, up 38.4% year over year. The margin was 23.8%, up 460 basis points.
GE Aerospace’s Balance Sheet & Cash Flow
Exiting the first quarter of 2025, GE Aerospace had cash, cash equivalents and restricted cash of $12.4 billion compared with $13.6 billion at the end of December 2024. The company’s long-term borrowings were $17.5 billion compared with $17.2 billion at the end of December 2024.
In the first quarter, the adjusted free cash flow was $1.4 billion compared with $1.7 billion in the year-ago period.
In the same period, GE rewarded its shareholders with a dividend payment of $302 million. The company repurchased shares for approximately $1.97 billion during the same period.