GE Aerospace Expands Q1 Operating Margins, CEO Talks Cost Control To Mitigate Tariff Impact

GE Aerospace GE shares are trading higher in the premarket on Tuesday after it reported first-quarter 2025 adjusted revenue growth of 11% year-over-year to $9 billion, in line with the consensus of $9 billion. GAAP revenue was $9.935 billion (+11% YoY).

Commercial Engines & Services revenue was $6.977 billion (+14% YoY), and Defense & Propulsion Technologies revenue totaled $2.324 billion (+1% YoY).

Total orders increased 12% YoY to $12.3 billion, with Commercial Engines & Services +15% YoY and Defense & Propulsion Technologies flat.

GE Aerospace’s adjusted operating profit margin expanded 460 bps to 23.8%, with an adjusted operating profit of 2.146 billion, up 38% YoY in the quarter.

Adjusted EPS for the quarter was $1.49 (+60% Y/Y), beating the consensus of $1.26.

Related: GE Aerospace Gears Up For Q1 Print; Here Are The Recent Forecast Changes From Wall Street’s Most Accurate Analysts

During the quarter, GE Aerospace boosted material inputs by 8% through its FLIGHT DECK platform, supporting a 17% increase in Commercial Engine Services and 5% growth in Defense.

GE Aerospace Chairman and CEO H. Lawrence Culp, Jr commented, “The macroeconomic dynamics we are operating in today require us to take a number of strategic actions, such as controlling costs and leveraging available trade programs. Based on what we know today, these actions, along with our solid first quarter and commercial services backlog of over $140 billion, enable us to maintain our full-year guidance.”

2025 Guidance reaffirmed: GE Aerospace expects adjusted revenue growth in the low double digits and adjusted EPS of $5.10 – 5.45 vs. the $5.10 consensus.

The company expects adjusted operating profit of $7.8 billion—$8.2 billion and adjusted Free Cash Flow of $6.3 billion—$6.8 billion.

GE Aerospace stated that its 2025 guidance now factors in the impact of announced tariffs and delayed spare engine deliveries.

The company expects full-year departures to grow in the low single digits, down from its mid-single-digit forecast. The outlook excludes potential changes in airframer schedules, further tariff hikes, or a global recession.

The company announced a $1 billion investment in U.S. manufacturing and technology and plans to hire approximately 5,000 workers. It also secured major engine agreements with ANA, Malaysia Aviation, and Korean Air and a U.S. Air Force contract worth up to $5 billion.

Price Action: GE shares are up 5.07% at $187.40 premarket at the last check on Tuesday.

Photo by Jonathan Weiss via Shutterstock