GE Aerospace reported a strong start to 2025, with first-quarter results showcasing solid momentum across revenue, profitability, and operational execution. Total revenue rose 11% to $9.94 billion, fueled largely by strength in the commercial aerospace segment. Adjusted revenue also climbed 11% to $9.00 billion, underlining the consistency of the company’s core performance.

Profitability showed even more striking gains. GAAP profit reached $2.25 billion, up 13%, while GAAP profit margin expanded by 40 basis points to 22.6%. On a non-GAAP basis, operating profit surged 38% to $2.15 billion, and operating profit margin rose 460 basis points to 23.8%. Net income attributable to common shareholders increased to $1.98 billion, up from $1.54 billion a year earlier. This strength translated into GAAP EPS of $1.83 (up 16%) and adjusted EPS of $1.49, marking a 60% year-over-year increase.

However, cash flow figures were somewhat softer. Cash from operating activities fell 5% to $1.54 billion, and free cash flow declined 14% to $1.44 billion, reflecting timing-related working capital shifts.

The Commercial Engines & Services (CES) segment was the key growth engine. CES reported orders of $9.58 billion, up 15%, and revenue of $6.98 billion, up 14%. Operating profit jumped 35% to $1.92 billion, with margins improving by 420 basis points to 27.5%. This performance was driven by a 17% increase in services revenue, particularly strong gains in spare parts (up over 20%) and internal shop visits (up 11%). Equipment sales also rose 9%, aided by pricing and mix improvements that more than offset a decline in unit deliveries due to supply chain constraints. CES delivered 444 commercial engines, including 319 LEAP engines, both down from Q1 2024.

The Defense & Propulsion Technologies (DPT) segment saw more modest growth, with revenue up 1% to $2.32 billion and orders flat at $3.03 billion. Nonetheless, profitability improved notably: operating profit rose 16% to $296 million, and margins expanded by 160 basis points to 12.7%, helped by favorable mix, productivity, and pricing. Defense engine deliveries increased to 131 units, up from 125.

Strategically, GE Aerospace is reinforcing its foundation for future growth. The company reported total orders of $12.3 billion, up 12%, and a commercial services backlog exceeding $140 billion. Leveraging its FLIGHT DECK model, GE achieved an 8% sequential increase in material inputs from key suppliers, helping mitigate ongoing supply chain constraints. The company also announced nearly $1 billion in U.S. manufacturing and tech investments, with plans to hire around 5,000 new U.S. workers.

Major contract wins added to the momentum, including significant deals with ANA Holdings, Malaysia Aviation Group, Korean Air, and a U.S. Air Force contract worth up to $5 billion. On the innovation front, GE Aerospace marked progress on advanced engine development for the U.S. military and the RISE program, reinforcing its leadership in propulsion technology.

On the balance sheet, GE ended the quarter with $12.41 billion in cash and equivalents, down from $13.62 billion at year-end 2024. Total assets stood at $124.12 billion, and shareholders’ equity was $19.25 billion.

Looking ahead, GE Aerospace reaffirmed its 2025 outlook, projecting low double-digit adjusted revenue growth, operating profit between $7.8 and $8.2 billion, and adjusted EPS in the range of $5.10 to $5.45. Free cash flow is expected between $6.3 and $6.8 billion. CES revenue is forecast to grow in the mid-teens, while DPT is expected to see mid- to high-single-digit growth.

CEO H. Lawrence Culp, Jr. praised the strong start to the year, emphasizing the company’s ability to sustain momentum through disciplined execution, cost control, and targeted investment, despite macro and operational headwinds.

In summary, GE Aerospace’s Q1 2025 performance reflects a company executing well on its strategic priorities, with strong demand in commercial services, expanding margins, and a robust pipeline that supports its full-year outlook.