GE Aerospace Delivers Strong Q1 Profit

Core Viewpoint - GE Aerospace exceeded earnings expectations in Q1 2025, driven by strong commercial orders and services, despite ongoing supply chain challenges [1][2]. Financial Performance - Adjusted earnings per share (Non-GAAP) for Q1 2025 were $1.49, surpassing analyst expectations of $1.27, marking a 60% increase year-over-year from $0.93 [3][6]. - Revenue (GAAP) reached $9.9 billion, an 11% increase from $9.0 billion in Q1 2024 [3][6]. - Operating profit margin (Non-GAAP) improved to 23.8%, up 460 basis points from 19.2% in the previous year [3]. - Free cash flow (Non-GAAP) decreased by 14% to $1.44 billion compared to $1.67 billion in Q1 2024 [3][9]. Business Overview - GE Aerospace is a key player in the aerospace industry, focusing on jet engine design and manufacturing for both commercial and military aircraft [4]. - The company emphasizes enhancing product offerings, operational capabilities, and expanding order backlogs to strengthen its market position [4]. Segment Performance - In the Commercial Engines & Services (CES) segment, orders increased by 15% and revenue grew by 14% in Q1 2025, driven by a 17% rise in services and over 20% growth in spare parts revenue [7]. - The Defense & Propulsion Technologies (DPT) segment experienced a modest 1% revenue increase, with a significant contract with the U.S. Air Force valued at up to $5 billion for F110-GE-129 engines [8]. Future Outlook - GE Aerospace has a positive outlook for 2025, with commercial and defense service backlogs exceeding $140 billion [10]. - The company anticipates mid-teens revenue growth rates within CES and projects full-year operating profit (Non-GAAP) between $7.8 billion and $8.2 billion, with adjusted EPS expected to be between $5.10 and $5.45 [11].