Cathay Pacific announced an agreement for 28 additional GE9X engines, taking their total commitment to more than 70.
GE Aerospace released its third quarter 2025 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 third quarter:
- Total orders of $12.8B, +2%
- Total revenue (GAAP) of $12.2B, +24%; adjusted revenue* $11.3B, +26%
- Profit (GAAP) of $2.5B, +33%; operating profit* $2.3B, +26%
- Profit margin (GAAP) of 20.7%, +150 bps; operating profit margin* 20.3% flat
- Continuing EPS (GAAP) of $2.04, +31%; adjusted EPS* $1.66, +44%
- Cash from Operating Activities (GAAP) of $2.6B, +34%; free cash flow* $2.4B, +30%
GE Aerospace Chairman and CEO H. Lawrence Culp, Jr., said, “GE Aerospace delivered an exceptional quarter with revenue up 26%, EPS up 44%, and more than 130% free cash flow conversion. Given the strength of our year-to-date results and our expectations for the fourth quarter, we're raising our full-year guidance across the board."
Culp continued, "FLIGHT DECK, our proprietary lean operating model, is guided by a customer-driven approach to continuous improvement, where daily progress compounds to drive meaningful results. We are seeing that materialize this quarter with strong services and engine output for our customers. Our continued investments in LEAP durability and the future of flight will help us build on this momentum and position us for growth."
Taking a closer look at our segment results. Commercial Engines & Services (CES) delivered robust services performance with orders up 32% and revenue up 28%, with internal shop visit revenue up 33% and spare parts revenue up more than 25%. Profit was up 35% driven by higher volume, price and favorable shop visit and spare parts mix which more than offset growth and adverse mix in OE.
Commercial demand remains strong. Korean Air announced the largest fleet commitment in its history with 103 Boeing aircraft powered by GEnx, GE9X, and LEAP-1B lines, plus long-term services and Cathay Pacific announcing an agreement for 28 additional GE9X engines, taking their total commitment to more than 70.
Additionally, earlier this month at our GE Aerospace Research Center, we had the opportunity to share how our experience across 2.3 billion flight hours and roughly $3 billion of annual R&D investment is enabling continuous improvement in field performance. For example, the lessons learned from 15 years of enhancing GEnx durability over 2x are being applied to LEAP to achieve the same level of improvement. Looking to future platforms, we launched our second dust test on the 9X engine and began similar dust testing on next-gen HPT blades for RISE compact core development, which could have applications to today’s fleet. We also recently announced our first ever Chief Mechanic and Architect for Open Fan technology, making durability a top priority in engine design.
In Defense & Propulsion Technologies (DPT) revenue was up 26% and profit increased 75%, as higher volume, customer mix, and price offset investments and inflation.
In addition, we completed our first supersonic test campaign in flight and announced a new partnership and investment in BETA Technologies to co-develop a hybrid electric turbogenerator and accelerate our work toward hybrid electric flight.
Based on GE Aerospace's year-to-date performance and trajectory entering the fourth quarter, we’re raising our full-year 2025 guidance across the board and now expect:
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.