GE Aerospace Earnings Beat Estimates in Q1, Surge 60% Y/Y

Core Insights - GE Aerospace reported strong first-quarter 2025 results, with revenues and earnings exceeding expectations [1][2] - The company emerged as a separate public entity in April 2024 after spinning off GE Vernova Inc. [1] Financial Performance - Adjusted earnings were $1.49 per share, surpassing the Zacks Consensus Estimate of $1.26, reflecting a 60% year-over-year increase [2] - Total revenues reached $9.9 billion, an 11% year-over-year increase, with total orders growing 12% to $12.3 billion [2] - Adjusted revenues were $9 billion, beating the consensus estimate of $8.97 billion, marking an 11% year-over-year rise [3] Segment Analysis - Revenues from the Commercial Engines & Services segment increased by 14.5% year over year to $6.98 billion, driven by higher shop visit work and increased spare parts [3] - The Defense & Propulsion Technologies segment reported revenues of $2.32 billion, up 1% year over year, with total orders remaining flat at $3 billion [4] Cost and Profitability - Cost of sales grew 4.3% year over year to $6 billion, while selling, general, and administrative expenses decreased by 14.6% to $876 million [5] - Adjusted operating profit was $2.1 billion, a 38.4% increase year over year, with a margin of 23.8%, up 460 basis points [5] Balance Sheet and Cash Flow - At the end of Q1 2025, cash and cash equivalents totaled $12.4 billion, down from $13.6 billion at the end of December 2024 [6] - Adjusted free cash flow was $1.4 billion, compared to $1.7 billion in the same period last year [6] Shareholder Returns - The company paid $302 million in dividends and repurchased shares worth approximately $1.97 billion during the quarter [7] Future Outlook - For 2025, GE expects adjusted revenues to grow in the low-double-digit range, with operating profit estimated between $7.8 billion and $8.2 billion [8] - The Commercial Engines & Services segment is projected to see mid-teen revenue growth, while the Defense & Propulsion Technologies segment is expected to grow in the mid to high-single-digit range [9]