Aviation demand is picking up! GE Aerospace (GE.US) Q2 Results Exceed Expectations and Raise Full-Year Guidance

The Zhitong Finance App learned that GE Aerospace (GE.US) raised its full-year financial forecast and announced that second-quarter profits exceeded Wall Street expectations, as rising demand in the aviation market mitigated the impact of the global trade war. According to financial reports, GE Aerospace's second-quarter revenue was US$10.2 billion, up 24.1% year over year, which was US$640 million higher than market expectations; adjusted second-quarter earnings per share were $1.66, higher than expectations of $0.23.

The company issued a statement on Thursday saying that adjusted earnings per share for 2025 are expected to be between $5.60 and $5.80, higher than the previous forecast range of no more than $5.45.

The company expects revenue growth of around 15%, compared to the market's general forecast of 12.72%; the company also raised its 2025 guidance and 2028 outlook, including achieving approximately $11.5 billion in operating profit and approximately $8.5 billion in free cash flow in 2028 — both $1.5 billion higher than the previous 2024 Investor Day outlook

The company is benefiting from a surge in orders, which were slowing due to market fluctuations earlier this year. The company said its commercial revenue increased 30% in the last quarter, and recent orders include the largest wide-body aircraft deal in history selling more than 400 engines to Qatar Airways.

The industry has been struggling to cope with the uncertainty brought about by US President Trump's tariff policies, and aerospace industry leaders say these tariffs could drive up costs and disrupt the supply chain.

CEO Larry Culp has always been outspoken about this topic, and he directly discussed with Trump how free trade could benefit the industry and generate a trade surplus for the US.

“I think the government is really listening,” Calp said in an interview. “We talked to everyone who wanted to meet.” The CEO said he is “optimistic” that solutions will be found that will benefit the industry, and said his company is offsetting part of the impact of tariffs through cost control and price increases.

The company recently received approval to resume engine deliveries to Chinese aircraft manufacturer Commercial Aircraft Corporation of China.

After Calp completed the spin-off of this once powerful conglomerate last year, separating its energy and medical businesses, GE Aerospace became an independent company.