GE Aerospace (NYSE:GE) posted strong results for the second quarter, significantly ahead of Wall Street expectations, and raised both its 2025 and long-term guidance as momentum in commercial services continues.
For Q2, earnings per share grew 38% from the year-ago period to $1.66, ahead of estimates of $1.43.
Revenue was up 21% year-over-year at $11.02 billion, ahead of the consensus $9.59 billion.
This was driven by a 30% surge in Commercial Engines & Services revenue to $7.99 billion, attributed to strong demand for engines, spare parts and repairs as airlines continue to use older jets.
For 2025, the company now expects adjusted revenue growth in the mid-teens, up from its earlier guidance of low-double digits.
Operating profit is guided to be between $8.2 billion and $8.5 billion, compared to the prior $7.8 billion to $8.2 billion, and adjusted EPS in the range of $5.60 to $5.80, up from $5.10 to $5.45.
For 2028, GE expects a double-digit compound annual growth rate between 2024 and 2028, up from its earlier high-single-digit guidance.
It expects an operating profit of $11.5 billion and introduced adjusted EPS guidance of $8.40.
Further, the company expects to increase capital returns to shareholders from 2024 to 2026 by 20% to approximately $24 billion.
“The GE Aerospace team delivered an excellent second quarter with free cash flow nearly doubling and more than 20% growth in orders, revenue, operating profit, and EPS,” GE Aerospace CEO H Lawrence Culp Jr said in a statement.
“We are raising our 2025 guidance and 2028 outlook, with our operating performance and robust commercial services outlook underpinning our higher revenue, earnings, and cash growth expectations.
Shares of GE traded up 0.7% at about $268 post-earnings.