GE Aerospace completed certification for the LEAP-1B durability kit, including the upgraded HPT blade, which is expected to deliver ~2x improvement in time-on-wing
GE Aerospace released its second quarter financial results today. We encourage you to read the full materials and listen to our earnings call at 7:30 AM EDT.
Key highlights of GE Aerospace's performance for the second quarter:
- Total orders of $16.5B, +17%
- Total revenue (GAAP) of $13.3B, +21%; adjusted revenue* $12.6B, +24%
- Profit (GAAP) of $2.8B, +17%; operating profit* $2.7B, +18%
- Profit margin (GAAP) of 21.0%, (70) bps; operating profit margin* 21.7%, (130) bps
- Continuing EPS (GAAP) of $2.30, +23%; adjusted EPS* $2.02, +22%
- Cash from Operating Activities (GAAP) of $3.3B, +39%; free cash flow* $3.0B, +43%
GE Aerospace Chairman and CEO H. Lawrence Culp, Jr., said, “GE Aerospace delivered a strong second quarter with revenue and EPS both up more than 20% driven by robust commercial services growth. FLIGHT DECK continues to fuel significant operational improvements across services and equipment with record internal shop visit output in the quarter and 31% growth in total engine deliveries in the first half.”
Culp continued, “Given our exceptional year-to-date performance and visibility for the remainder of the year, we are raising our full-year guidance across the board. As we look forward, we remain focused on advancing what matters most for our customers: delivering on our over $210 billion backlog while investing in current and next-generation technology to improve time-on-wing and cost of ownership.”
Commercial Engines & Services (CES) delivered robust services performance with orders up 18% and revenue up 27%, with internal shop visit revenue up 25% and spare parts revenue up more than 25%. Profit was up 20% driven by higher services volume and price. Defense & Propulsion Technologies (DPT) also posted double-digit growth, with orders up 12% and revenue up 16%.
FLIGHT DECK continues to strengthen our operational capabilities, with priority supplier material input increasing by double-digits sequentially and year-over-year again in 2Q.
Customer demand for LEAP remains robust and we continue to make progress on our durability roadmap, completing certification for the LEAP-1B durability kit, including the upgraded HPT blade. At the same time, we’re continuing to advance the future of flight. Through the NASA Electrified Powertrain Flight Demonstration or EPFD project, we recently completed ground testing for the megawatt-class hybrid electric demonstrator. This represents a major milestone in understanding hybrid electric flight, by bringing together advanced engines, electrical power systems, and controls. We’ve also expanded our relationship with BETA Technologies, who joined the EPFD last year, to advance the modification of the EDFD aircraft.
We also continue to see momentum on our current and next-generation programs. Turkish Aerospace selected F404 engines to power its HÜRJET advanced jet trainer program, and Leonardo Helicopters selected CT7 engines to power the UK Ministry of Defence’s New Medium Helicopter program. We also completed the assembly readiness review for the XA102 adaptive cycle engine, moving the program from design into assembly and test.
These results close out an exceptional first half with orders up 49%, adjusted revenue* up 27%, adjusted EPS* growing 24%, and free cash flow* increasing 31% with 115% conversion. Given the strength of our first half results and momentum for the remainder of the year, we’re raising our 2026 guidance across the board:
Thank you for your continued interest in GE Aerospace,
GE Aerospace Investor Relations team
*Non-GAAP Financial Measure; For important information about forward-looking statements, please see here.
(a –FCF* conversion: FCF*/adjusted net income