GE Aerospace (NYSE:GE) Q3 2025 Earnings Call October 21, 2025 07:30 AM ET Company ParticipantsBlaire Shoor - Head of Investor RelationsRahul Ghai - CFOLarry Culp - Chairman and CEOConference Call ParticipantsScott Deuschle - AnalystSheila Kahyaoglu - Senior Equity Research AnalystRon Epstein - Senior Research AnalystDoug Harned - Senior AnalystRobert Stallard - AnalystMyles Walton - AnalystGautam Khanna - AnalystSeth Seifman - AnalystScott Mikas - AnalystOperatorGood day, ladies and gentlemen, and welcome t ...

GE Aerospace (NYSE:GE) Q3 2025 Earnings Call October 21, 2025 07:30 AM ET Company ParticipantsBlaire Shoor - Head of Investor RelationsRahul Ghai - CFOLarry Culp - Chairman and CEOConference Call ParticipantsScott Deuschle - AnalystSheila Kahyaoglu - Senior Equity Research AnalystRon Epstein - Senior Research AnalystDoug Harned - Senior AnalystRobert Stallard - AnalystMyles Walton - AnalystGautam Khanna - AnalystSeth Seifman - AnalystScott Mikas - AnalystOperatorGood day, ladies and gentlemen, and welcome t ...

Core Insights - The surge in global air travel and increased defense spending are driving strong demand for jet engines, benefiting RTX Corp.'s Pratt & Whitney business unit [1] Commercial Aviation - Airlines are modernizing fleets with fuel-efficient engines to lower operating costs and meet sustainability goals, leading to increased demand for Pratt & Whitney's GTF engines, which offer up to 20% lower fuel consumption [2] Defense Sector - Pratt & Whitney's F135 engine powers the F-35 Lightning II, and geopolitical tensions are increasing military aircraft procurement, boosting demand for RTX's combat jet engines [3] Financial Performance - Pratt & Whitney's sales grew 14% year over year in Q1 2025, 18% in Q4 2024, 14% in Q3 2024, and 19% in Q2 2024, indicating strong top-line performance [4] Future Outlook - As of June 18, 2025, RTX has received nearly 1,100 GTF engine orders and commitments, and secured contracts worth up to $1.5 billion for F119 engine support and $1.3 billion for the F135 Engine Core Upgrade [5][10] Competitors - Other jet engine manufacturers like GE Aerospace and RollsRoyce are also experiencing solid order flows due to the same demand trends [6] Stock Performance - RTX shares have increased by 43.8% over the past year, outperforming the industry growth of 14.2% [9] Valuation - RTX is trading at a forward 12-month P/E multiple of 23.17X, which is approximately 11.6% lower than the industry average of 26.20X [11] Sales and Earnings Estimates - The Zacks Consensus Estimate suggests a sales improvement of 4.2% and 5.8% for 2025 and 2026, respectively, although earnings per share estimates have declined over the past 60 days [12]

Group 1 - GE Aerospace is set to release its first-quarter earnings results on April 22, with expected earnings of $1.27 per share, an increase from $0.82 per share in the same period last year [1] - The projected quarterly revenue for GE Aerospace is $9.05 billion, down from $15.17 billion a year earlier [1] - GE Aerospace shares experienced a decline of 1.9%, closing at $178.35 [2] Group 2 - On April 8, GE Aerospace and MTU Maintenance entered into an agreement to service GEnx engines at an expanded facility in Fort Worth [2] - Analysts have provided various ratings and price targets for GE Aerospace, with Wells Fargo raising its target from $203 to $212 [6] - Citigroup reduced its price target from $235 to $227 while maintaining a Buy rating [6]

Group 1: Contract and Collaboration - GE Aerospace secured a contract from Korean Air to supply GEnx and GE9X engines, marking the first GE9X order in South Korea [1] - The deal includes maintenance, repair, and overhaul services for the GE9X engines, highlighting the long-standing collaboration between GE Aerospace and Korean Air [1][3] Group 2: Engine Performance and Market Presence - The GEnx engine family has completed over 62 million flight hours, with more than 3,600 engines currently in service and backlog [2] - The GEnx engine is installed in two-thirds of all Boeing 787 aircraft in service, while the GE9X engine offers a 10% improvement in specific fuel consumption compared to the GE90-115B [2] Group 3: Investment and Growth Strategy - GE plans to invest over €78 million in 2025 to expand and upgrade its manufacturing facilities in Europe, aimed at boosting production capacities for commercial and defense customers [4] - The company is benefiting from a growing installed base and higher utilization of engine platforms, driven by strong momentum in commercial and defense sectors [5] Group 4: Financial Performance - GE's shares have gained 23.4% in the past three months, outperforming the industry's 4.7% growth [6] - The Zacks Consensus Estimate for GE's 2025 earnings has increased by 2.3% in the past 60 days, indicating positive market sentiment [6]