GE Aerospace Releases Its 3Q'26 Results

GE Aerospace released its third 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 third quarter:

• Total orders of $19.0B, +49%
• Total revenue (GAAP) of $14.1B, +16%; adjusted revenue* $13.3B, +18%
• Profit (GAAP) of $2.8B, +12%; operating profit* $3.0B, +30%
• Profit margin (GAAP) of 19.9%, (80) bps; operating profit margin* 22.5%, +220 bps
• Continuing EPS (GAAP) of $2.32, +14%; adjusted EPS* $2.25, +36%
• Cash from Operating Activities (GAAP) of $2.2B, (14)%; free cash flow* $2.0B, (14)%

GE Aerospace Chairman and CEO H. Lawrence Culp, Jr., said, “We delivered strong results this quarter as solid demand drove orders up 49%, with strength in commercial services up 23%, total revenue up 18% and EPS up 36%. We are raising our 2026 guidance across the board, and we now expect 2027 commercial services to grow low-double-digits supported by our over $170 billion commercial services backlog.”

Culp continued, “Thanks to the collaboration of the GE Aerospace team with our supplier partners we continue to build momentum. By leveraging FLIGHT DECK fundamentals, year-to-date commercial services revenue and total engine deliveries were both up over 20%, including another quarter of record internal shop visit output. All the while, we're continuing to invest in our customers' needs with our agreement to acquire CPP to expand capacity, and over $3 billion in annual R&D to advance current and future technologies."

Commercial Engines & Services (CES) orders were up 58%, and revenue up 21%, driven by 12% increase in internal shop visit revenue and more than 20% growth in spare parts. Equipment revenue increased 38%, with engine deliveries up 8%, including LEAP up 5% and strong GEnx growth. While we delivered GE9X engines in the quarter, the impact will be recognized post midseal certification, which we are working to achieve by the end of ’26. Profit was up 21% from higher services volume and price, partially offset by mix and inflation. In Defense & Propulsion Technologies (DPT) orders were up 18% and revenue was up 7%. Profit was up 8% from increased volume and price, partially offset by mix and inflation.

We had a historic Farnborough International Airshow, where we announced commitments for more than 1,800 engines, including a an agreement with IndiGo for the largest LEAP agreement ever for more than 1,000 LEAP-1A to power its A320neo aircraft. And last week, we announced an agreement with Turkish Airlines for more than 300 LEAP-1B to power its 737MAX fleet. We also announced a long-term services agreement covering its entire LEAP-1B fleet of over 600 engines.

We are leveraging FLIGHT DECK fundamentals to strengthen our operational capabilities, with priority supplier material input increasing by double-digits year-over-year again in 3Q, marking the 10th consecutive quarter of sequential growth.

Building on this momentum, we remain focused on investing to meet customer needs. We signed an agreement last month to acquire Consolidated Precision Products (CPP) to expand capacity of mission-critical castings for the industry. All the while, we continue to invest over $3 billion in R&D annually to advance current and future technologies. In the quarter, we completed the world’s first high-altitude hybrid electric flight above 30,000 feet in partnership with the NASA, BETA Technologies, and Boeing, and advanced key defense programs including the selection of the GEK800 (F143) engine with Kratos as a second-source propulsion solution for JASSM,and the selection of XA102 adaptive-cycle engine for the next phase of NGAP, moving into hardware procurement and subcomponent testing.

Based on GE Aerospace's year-to-date performance and outlook for the fourth quarter, the company is raising total company guidance across the board and now expects:

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