Financial Performance - GE Aerospace's total revenue for the year ended December 31, 2025, was approximately $XX billion, with Commercial Engines & Services (CES) contributing about 73% of total revenue[14]. - Total revenue for 2025 increased by $7.2 billion, or 18%, to $45.855 billion compared to 2024, driven by higher equipment and services revenue[50]. - Equipment revenue rose to $12.159 billion, a 18.3% increase from $10.274 billion in 2024, while services revenue increased to $30.163 billion, up 21.5% from $24.847 billion[50]. - Net income from continuing operations increased by $1.9 billion to $8.601 billion, with continuing EPS rising to $8.05, a 32.2% increase from $6.09 in 2024[51][52]. - Adjusted net income for 2025 was $6,812 million, with an adjusted EPS of $6.37, compared to $5,035 million and $4.60 in 2024, representing a year-over-year increase of 35.3% in adjusted net income[147]. - Free cash flow increased to $7.7 billion in 2025 from $6.2 billion in 2024, primarily due to higher net income and sales discounts[104]. - Cash from operating activities was $8.5 billion in 2025, an increase of $2.7 billion compared to 2024, driven by higher net income and sales[100]. - The company reported a net income from continuing operations of $8,598 million for 2025, compared to $6,670 million in 2024, reflecting a 29.0% increase[147]. Research and Development - GE Aerospace's total research and development (R&D) funding reached $2,989 million in 2025, an increase from $2,699 million in 2024 and $2,476 million in 2023[29]. - GE Aerospace funded R&D increased to $1,580 million in 2025, up from $1,286 million in 2024 and $1,011 million in 2023[29]. - Customer and partner funded R&D was $1,409 million in 2025, slightly down from $1,413 million in 2024 and $1,465 million in 2023[29]. - Significant investments are being made in the RISE suite of technologies to enable a safe, durable, and efficient future of flight[26]. Workforce and Culture - GE Aerospace employed approximately 57,000 people as of December 31, 2025, with around 30,000 based in the United States[24]. - The company successfully negotiated collective bargaining agreements with the majority of its U.S. unions in 2025, ensuring fair wages and benefits for employees[25]. - GE Aerospace's organizational culture emphasizes safety, integrity, and continuous improvement, which is reflected in its annual employee culture survey results[27]. Supply Chain and Operations - Global material availability and supplier delivery performance continue to disrupt production and delivery, impacting the company's ability to meet customer demands[45]. - The company is leveraging its FLIGHT DECK operating model to improve material input and manage inflationary pressures while enhancing delivery performance[45]. - GE Aerospace's supply chain strategies include monitoring geopolitical risks and developing counteractions to ensure continuity of supply[31]. - Supply chain constraints and disruptions continue to pose challenges, affecting the company's ability to meet customer demand and maintain profitability[168]. - The company is dependent on third-party suppliers for critical components, and disruptions in their operations could adversely affect the company's ability to meet customer commitments[183]. Financial Position and Liquidity - Total cash, cash equivalents, and restricted cash amounted to $12.4 billion at December 31, 2025, with $9.9 billion held in the U.S.[87]. - Consolidated total borrowings increased to $20.5 billion in 2025 from $19.3 billion in 2024, primarily due to new debt issued of $2.0 billion[92]. - The company maintains a strong focus on liquidity, with sufficient cash and access to capital markets to meet its financial obligations[86]. - Cash used for investing activities was $0.8 billion in 2025, an increase of $0.2 billion compared to 2024[102]. Risks and Challenges - The company's financial performance is significantly influenced by global macroeconomic conditions, geopolitical risks, and demand shocks, particularly from events like wars or pandemics[167]. - The company faces competitive pressures that require continuous innovation and improvement of existing products and services to maintain market position and profitability[170]. - Climate and environmental regulations are evolving, presenting risks and increasing operational costs, while the demand for low-emission technologies is rising[173][174]. - Cybersecurity threats are increasing, with sophisticated attacks posing risks to the company's systems and data integrity, potentially leading to material harm[185]. - The company is subject to various legal and compliance risks, including government audits and investigations that could lead to fines or penalties[194]. Corporate Governance - Management is responsible for maintaining adequate internal control over financial reporting, with evaluations conducted based on established frameworks[203]. - The company engaged Deloitte and Touche LLP for auditing and ensuring compliance with financial reporting standards[201]. - The Audit Committee, consisting of independent directors, oversees internal controls and financial reporting, ensuring accountability and transparency[202]. - General Electric Company's internal control over financial reporting was effective as of December 31, 2025[204].
GE(GE) - 2025 Q4 - Annual Report