Q2 2025 Earnings Summary
| Metric | YoY Change | Reason |
|---|---|---|
Total Revenue | 21% increase ( ) | The Q2 2025 Total Revenue of $11,023 million grew 21% over Q2 2024’s $9,094 million; this robust increase was driven by broad‐based organic growth across segments—including strong equipment and services revenue and improved pricing—as previously observed in Q1 when higher customer demand and increased delivery volumes propelled revenue upward. |
Commercial Engines and Services | 30% increase ( ) | CES revenue climbed to $7,990 million in Q2 2025, a 30% YoY rise; this surge is attributed to sustained strong demand for both spare parts and equipment, highlighted by improvements in widebody engine mix and increased spare parts shipments seen in earlier quarters, reinforcing the positive customer response and robust order growth. |
Defense Segment Revenue | 6.7% increase ( ) | Defense revenue reached $2,563 million, a 6.7% increase over last year; the modest growth reflects a continuation of improved defense unit deliveries and pricing enhancements, though it remains lower compared to the strong double-digit gains seen in previous Q1 periods, possibly due to a balancing of higher volume with offsetting softening in services revenue. |
Corporate Revenue | 16% decrease ( ) | Corporate revenue fell to $470 million, about 16% lower than Q2 2024’s $561 million; the decline is linked to adjustments such as reduced insurance revenue contributions and increased intercompany eliminations, marking a shift from the slight increases seen in previous quarters where corporate contributions had partly offset operating challenges. |
| 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 GENERAL ELECTRIC.