GE Aerospace Beats Estimates and Lifts 2026 Outlook , But Shares Decline 5%

Core Viewpoint - GE Aerospace reported strong fourth-quarter earnings and revenue that exceeded analyst expectations, despite a decline in share price during the trading day [1] Group 1: Fourth-Quarter Performance - Adjusted earnings per share for the fourth quarter were $1.57, surpassing the consensus estimate of $1.43 [1] - Revenue for the fourth quarter reached $11.87 billion, exceeding the $11.2 billion consensus estimate [1] - Adjusted earnings increased by 19% year over year, while adjusted revenue rose by 20% compared to the same quarter last year [1] Group 2: Full-Year 2025 Results - For the full year 2025, adjusted earnings per share were $6.37, up 38% year over year [2] - Adjusted revenue increased by 21% to $42.3 billion [2] - Free cash flow climbed by 24% to $7.7 billion, with conversion exceeding 100% [2] Group 3: Future Outlook for 2026 - GE Aerospace forecasts earnings per share for 2026 to be between $7.10 and $7.40, with the midpoint exceeding analyst estimates of $7.12 [3] - The company noted continued strength in both commercial and defense markets, with commercial engine deliveries increasing by 25% in 2025 [3] - LEAP engine deliveries rose by 28%, while defense deliveries grew by 30% [3] Group 4: Order Backlog - Fourth-quarter orders totaled $27 billion, representing a 74% increase from the prior year [2] - This growth in orders is expected to expand the company's backlog and support future growth prospects [2]