Dive Brief:
- GE Aerospace reported double-digit earnings growth in the fourth quarter, driven by robust demand for its commercial and defense engines as it looks to streamline operations.
- The Evendale, Ohio-based company saw quarterly revenue increase 18% to $12.7 billion over the previous year. It also posted a profit of $2.9 billion during the period, up 24% from a year ago.
- The engine maker also saw Q4 orders surge 74% to $27 billion, accounting for nearly half of its orders for the whole year. This development came as GE Aerospace worked to simplify its operations and progress through its $190 billion backlog of orders.
Dive Insight:
Early last year, GE Aerospace formed its Technology & Operations team with the goal of implementing the company’s lean operating model “Flight Deck” to improve product quality and delivery speeds across its engineering, quality, supply chain and manufacturing functions.
The new team has helped the company partner with suppliers more effectively, resulting in higher outputs so far, Chairman and CEO H. Lawrence Culp, Jr. said in an earnings call Thursday.
GEO Aerospace announced last week that the team will be integrated into its commercial business segment moving forward. The company also named Mohamed Ali to manage the expanded commercial division once its president and CEO Russell Stokes retires in July.
“2025 was an outstanding year for GE Aerospace as we made operational progress, delivered on our financial commitments and continued to invest in our future,” Culp said during the call. “The fourth quarter was a strong finish to the year.”
In 2025, GE Aerospace reported full-year revenue of $45.9 billion, up 18% over the previous year. It also delivered a $10 billion profit, representing a 31% increase. Orders grew 32% to $66.2 billion for the period.
In addition to implementing its Flight Deck program, GE Aerospace last year pledged to spend nearly $1 billion on its U.S. manufacturing footprint and supply chain, with more than half of the total directly going to its 26 existing facilities for equipment and technology upgrades.
Looking ahead, Culp said GE Aerospace is well positioned for 2026. The company estimated full-year revenue to be up “low double digits” compared to 2025, driven by strong orders and continued backlog growth. It also forecasted annual profit between $9.85 billion and $10.25 billion.
Earlier this month, the company landed a $1.4 billion contract to make engines for the U.S. Marine Corp’s heavy-lift helicopters. It also secured a deal with Delta Air Lines to power 30 Boeing planes.
Despite upbeat earnings, the results tempered investor enthusiasm. Company shares slipped about 7% to close Thursday at $294.94 on the New York Stock Exchange.
