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Investing.com -- GE Aerospace shares jumped 3.2% premarket on Thursday after the company posted second-quarter results that exceeded analyst expectations and raised its full-year guidance, driven by robust commercial services performance and improved operational efficiency.
The aerospace giant reported adjusted earnings per share of $1.66 for the second quarter, significantly beating the analyst estimate of $1.40. Revenue came in at $10.15 billion, well above the consensus estimate of $9.54 billion and up 23% YoY. Free cash flow nearly doubled to $2.1 billion, representing a 92% increase compared to the same period last year.
"The GE Aerospace team delivered an excellent second quarter with free cash flow nearly doubling and more than 20% growth in orders, revenue, operating profit, and EPS," said GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. "We are raising our 2025 guidance and 2028 outlook, with our operating performance and robust commercial services outlook underpinning our higher revenue, earnings, and cash growth expectations."
The company’s Commercial Engines & Services segment was particularly strong, with revenue increasing 30% to $8.0 billion, driven by a 29% growth in services and a 35% increase in equipment revenue. The Defense & Propulsion Technologies segment saw revenue rise 7% to $2.6 billion.
GE Aerospace raised its full-year 2025 guidance, now expecting adjusted EPS of $5.60-$5.80, compared to its previous forecast of $5.10-$5.45 and in line with the analyst consensus of $5.63. The company also increased its 2025 revenue growth projection from low-double-digits to mid-teens.
Additionally, GE Aerospace boosted its 2028 outlook, targeting approximately $11.5 billion in operating profit and $8.5 billion in free cash flow by that year, both representing $1.5 billion increases from previous projections.
The company also announced plans to increase capital returns to shareholders from 2024 to 2026 by 20%, to approximately $24 billion, with expectations to sustainably return at least 70% of free cash flow via dividends and buybacks beyond 2026