Q2 2025 Earnings Summary
| Metric | YoY Change | Reason |
|---|---|---|
Total Revenue | +21% ( ) | Total Revenue increased to $11,023 million from $9,094 million, driven by higher pricing and volume across multiple segments. This growth builds on the strong momentum seen in previous periods, where robust performance in GE Aerospace and other segments laid the groundwork for further revenue expansion, indicating favorable market demand and effective pricing strategies. |
Commercial Engines & Services | +30% ( ) | Commercial Engines & Services revenue surged to $7,990 million following a +30% YoY increase, attributed to a substantial boost in spare parts and services revenue as well as improved customer mix and pricing. This builds on earlier results—where Q1 2025 saw a 14% increase—and reflects an acceleration of trends such as higher equipment pricing and strong orders, despite supply chain challenges noted in previous periods. |
Defense Segment Revenue | +6.7% ( ) | Defense segment revenue increased to $2,563 million from $2,401 million, a modest rebound after Q1 fluctuations (an 18% increase in Q1 2024 versus only 1% in Q1 2025). The improvement in Q2 2025 is driven by renewed pricing efforts and enhanced services volume, reflecting stabilization in a segment that had earlier benefited from strong defense engine deliveries and pricing improvements. |
Corporate Revenue | +55% ( ) | Corporate revenue climbed to $872 million from $561 million, predominantly because of higher run-off insurance operations revenue and lower intercompany eliminations. This significant jump contrasts with the relative flat performance in Q1 2024 and modest gains in Q1 2025, underscoring the impact of focused corporate restructuring and operational adjustments that are expected to yield further margin improvements going forward. |
| Metric | Period | Previous Guidance | Current Guidance | Change |
|---|---|---|---|---|
Revenue Growth | FY 2025 | Expected low double-digit growth | Expected to be in the mid-teens, up from low double digits | raised |
Total Operating Profit | FY 2025 | Projected between $7.8 billion to $8.2 billion | Expected to be in the range of $8.2 billion to $8.5 billion | raised |
EPS | FY 2025 | Estimated between $5.10 to $5.45 | Expected to be $5.6 to $5.8 | raised |
Free Cash Flow | FY 2025 | Forecasted between $6.3 billion to $6.8 billion | Expected to be in the range of $6.5 billion to $6.9 billion | raised |
Tariffs Impact | FY 2025 | Approximately $500 million in costs due to tariffs | Expected net impact of tariffs to be roughly $500 million | no change |
Commercial Services Revenue Growth | FY 2025 | no prior guidance | Increased expectations to high teens | no prior guidance |
Commercial Equipment Revenue Growth | FY 2025 | no prior guidance | Expected to be high teens to 20% | no prior guidance |
Total CES Revenue Growth | FY 2025 | no prior guidance | Expected to be high teens | no prior guidance |
DPT Revenue Growth | FY 2025 | no prior guidance | Expectations unchanged from mid- to high single-digit growth | no prior guidance |
Free Cash Flow Conversion | FY 2025 | no prior guidance | Expected to remain solidly above 100% | no prior guidance |
| Metric | Period | Guidance | Actual | Performance |
|---|---|---|---|---|
Revenue Growth | Q2 2025 (YoY) | Low double-digit growth | 21% increase from $9,094To $11,023 | Beat |
Services Growth | Q2 2025 (YoY) | Low double-digit to mid-teens growth | 30% increase from $6,132To $7,990 | Beat |
Research analysts covering GE Aerospace.