GE AEROSPACE ANNOUNCES THIRD QUARTER 2025 RESULTS (Form 8-K)

GE AEROSPACE ANNOUNCES THIRD QUARTER 2025 RESULTS

Raises 2025 guidance across the board, supported by robust demand and improved output

Third Quarter 2025:

•Total orders of $12.8B, +2%;

•Total revenue (GAAP) of $12.2B, +24%; adjusted revenue* $11.3B, +26%;

•Profit (GAAP) of $2.5B, +33%; operating profit* $2.3B, +26%;

•Profit Margin (GAAP) of 20.7%, +150 bps; operating profit margin* 20.3%, flat;

•Continuing EPS (GAAP) of $2.04, +31%; adjusted EPS* $1.66, +44%;

•Cash from operating activities (GAAP) of $2.6B, +34%; free cash flow* $2.4B, +30%

CINCINNATI - October 21, 2025 - GE Aerospace (NYSE:GE) announced results today for the third quarter ending September 30, 2025.

GE Aerospace Chairman and CEO H. Lawrence Culp, Jr., said, "GE Aerospace delivered an exceptional quarter with revenue up 26%, EPS up 44%, and more than 130% free cash flow conversion. Given the strength of our year-to-date results and our expectations for the fourth quarter, we're raising our full-year guidance across the board."

Culp continued, "FLIGHT DECK, our proprietary lean operating model, is guided by a customer-driven approach to continuous improvement, where daily progress compounds to drive meaningful results. We are seeing that materialize this quarter with strong services and engine output for our customers. Our continued investments in LEAP durability and the future of flight will help us build on this momentum and position us for growth."

Recent highlights include:

•Increased material input from priority suppliers more than 35% year-over-year and high-single-digits sequentially. This contributed to third quarter Commercial Engines & Services (CES) services revenue growth of 28% and deliveries up 33% year-over-year, including record LEAP deliveries up 40% year-over-year. Defense deliveries were up 83% year-over-year.

•Secured new engine wins, including Korean Air selecting GEnx, GE9X, and LEAP-1B engines to power the largest order in its history for a mix of 103 Boeing aircraft plus long-term services; and Cathay Pacific announcing an agreement for 28 additional GE9X engines, taking their total commitment to more than 70.

•Building on learnings from GEnx and LEAP, started the second dust ingestion testing on the GE9X and the first on the CFM RISE program, key milestones in advancing durability and reliability across successive engine programs.

•Advanced mission-critical defense technologies by successfully completing GE Aerospace's first supersonic test campaign in flight and announcing a new partnership and investment in BETA Technologies to co-develop a hybrid electric turbogenerator and accelerate our work toward hybrid electric flight.

•Elected Wesley G. Bush, former Chairman and CEO of Northrop Grumman Corporation, to the GE Aerospace Board of Directors effective December 1, 2025.

Total Company Results & Guidance

			Three Months Ended September 30												Nine months ended September 30
Dollars in millions; per-share amounts in dollars, diluted			2025			2024			Year on Year						2025			2024			Year on Year
GAAP Metrics
Total Revenue			$12,181			$9,842			24		%				$33,138			$27,890			19		%
Profit			2,515			1,893			33		%				7,149			5,327			34		%
Profit Margin			20.7		%	19.2		%	150 bps						21.6		%	19.1		%	250 bps
Continuing EPS			2.04			1.56			31		%				5.73			4.34			32		%
Cash from Operating Activities (CFOA)			2,556			1,913			34		%				6,447			4,499			43		%
Non-GAAP Metrics
Adjusted Revenue			$11,305			$8,943			26		%				$30,457			$25,241			21		%
Operating Profit			2,299			1,818			26		%				6,783			5,265			29		%
Operating Profit Margin			20.3		%	20.3		%	0 bps						22.3		%	20.9		%	140 bps
Adjusted EPS			1.66			1.15			44		%				4.80			3.28			46		%
Free Cash Flow (FCF)			2,362			1,820			30		%				5,933			4,674			27		%

Financial Guidance:

Based on GE Aerospace's year-to-date performance and trajectory entering the fourth quarter, the company is updating its full-year 2025 guidance and now expects:

			2024			2025 Guide Prior			2025 Guide Current
Adjusted Revenue* Growth Adjusted Revenue*			'+10% $35.1B			+Mid-teens			+High-teens
Operating Profit* Operating profit margin*			$7.3B 20.7%			$8.2 - $8.5B			$8.65 - $8.85B
Adjusted EPS*			$4.60			$5.60 - $5.80			$6.00 - $6.20
Free Cash Flow* FCF* conversion-a)			$6.2B 123%			$6.5 - $6.9B >100%			$7.1 - $7.3B >100%

Segment guidance included below.

Results & Guidance by Reporting Segment

The following discussions and variance explanations are intended to reflect management's view of the relevant comparisons of financial results.

Commercial Engines & Services (CES)

			Three months ended September 30															Nine months ended September 30
(Dollars in millions)			2025			2024			Year on Year									2025			2024			Year on Year
Orders			$10,301			$9,799			5			%						$31,574			$27,266			16			%
Revenue			8,880			7,003			27			%						23,846			19,231			24			%
Operating profit/(loss)			2,436			1,799			35			%						6,588			4,897			35			%
Operating profit/(loss) margin			27.4		%	25.7		%	170			bps						27.6		%	25.5		%	210			bps

For the quarter, orders of $10.3 billion increased 5%, with services increasing 32% partially offset by timing of equipment orders. Revenue of $8.9 billion was up 27%. Services grew 28% with internal shop visit revenue up 33% and spare parts revenue up more than 25%. Equipment revenue grew 22%, with unit volume up 33% and favorable price offsetting product mix and lower spare engine ratio. Profit of $2.4 billion was up 35%, driven by services volume, mix, and price, which more than offset higher investments and OE growth, including GE9X. Margins expanded 170 basis points.

In 2025, CES now expects revenue growth of low twenties, up from our prior guide of high-teens, driven by higher services revenue, which is now expected to grow low- to mid-twenties, up from high-teens. CES continues to expect equipment revenue to grow high-teens to 20%. Operating profit is expected to be $8.45 billion to $8.65 billion, up from our prior guide of $8.0 billion to $8.2 billion from incremental services revenue and favorable services mix.

Defense & Propulsion Technologies (DPT)

			Three months ended September 30															Nine months ended September 30
(Dollars in millions)			2025			2024			Year on Year									2025			2024			Year on Year
Orders			$2,898			$3,044			(5)			%						$8,826			$8,408			5			%
Revenue			2,828			2,243			26			%						7,715			6,955			11			%
Operating profit/(loss)			386			220			75			%						1,044			820			27			%
Operating profit/(loss) margin			13.6		%	9.8		%	380			bps						13.5		%	11.8		%	170			bps

For the quarter, orders of $2.9 billion were down 5% due to timing across quarters. Revenue of $2.8 billion grew 26%. Defense & Systems revenue grew 24% driven by higher engines volume and improved pricing. Propulsion & Additive Technologies revenue grew 29% with all businesses growing over 20%. Profit of $386 million was up 75% as higher volume, customer mix, and price offset investments and inflation. Margins expanded 380 basis points.

In, 2025, DPT now expects revenue growth of high-single-digits, up from mid-to-high-single digits from improved engine output. DPT expects operating profit to be in the $1.2 billion to $1.3 billion range, up from our prior guide of $1.1 billion to $1.3 billion from improved revenue outlook.

Financial Measures That Supplement GAAP

We believe that presenting non-GAAP financial measures provides management and investors useful measures to evaluate performance and trends of the total company and its businesses. This includes adjustments in recent periods to GAAP financial measures to increase period-to-period comparability following actions to strengthen our overall financial position and how we manage our business.

In addition, management recognizes that certain non-GAAP terms may be interpreted differently by other companies under different circumstances. In various sections of this report we have made reference to the following non-GAAP financial measures in describing our (1) revenue, specifically Adjusted revenue, (2) profit, specifically Operating profit and Operating profit margin; Adjusted net income (loss) and Adjusted earnings (loss) per share (EPS), (3) cash flows, specifically free cash flow (FCF), and (4) guidance, specifically 2025 Operating profit, 2025 Adjusted EPS and 2025 FCF.

The reasons we use these non-GAAP financial measures and the reconciliations to their most directly comparable GAAP financial measures follow. Certain columns, rows or percentages within these reconciliations may not add or recalculate due to the use of rounded numbers. Totals and percentages presented are calculated from the underlying numbers in millions.

Beginning in the first quarter of 2025, we changed the terminology used to report our GAAP earnings from "Earnings" to "Net income" and our non-GAAP earnings from "Adjusted earnings" to "Adjusted net income." The change in terminology does not impact the amounts reported in the financial statements.

ADJUSTED REVENUE, OPERATING PROFIT AND PROFIT MARGIN (NON-GAAP)			Three months ended September 30												Nine months ended September 30
(Dollars in millions)			2025			2024			V%						2025			2024			V%
Total revenue (GAAP)			$	12,181		$	9,842		24		%				$	33,138		$	27,890		19		%
Less: Insurance revenue			875			899									2,681			2,649
Adjusted revenue (Non-GAAP)			$	11,305		$	8,943		26		%				$	30,457		$	25,241		21		%
Total costs and expenses (GAAP)			$	9,951		$	8,970		11		%				$	26,874		$	24,529		10		%
Less: Insurance cost and expenses			514			728									1,967			2,108
Less: U.S. tax equity cost and expenses			5			5									15			9
Less: interest and other financial charges			225			251									593			762
Less: non-operating benefit cost (income)			(198)			(207)									(596)			(628)
Less: restructuring & other			22			378									49			525
Less: goodwill impairments			-			251									-			251
Less: separation costs			53			74									150			408
Add: noncontrolling interests			(3)			(10)									(16)			(5)
Adjusted costs (Non-GAAP)			$	9,328		$	7,481		25		%				$	24,681		$	21,089		17		%
Other income (loss) (GAAP)			$	285		$	1,021		(72)		%				$	885		$	1,965		(55)		%
Less: U.S. tax equity			(48)			(48)									(142)			(121)
Less: gains (losses) on retained and sold ownership interests and other equity securities			8			357									18			598
Less: gains (losses) on purchases and sales of business interests			3			356									3			375
Adjusted other income (loss) (Non-GAAP)			$	322		$	356		(10)		%				$	1,007		$	1,112		(9)		%
Profit (loss) (GAAP)			$	2,515		$	1,893		33		%				$	7,149		$	5,327		34		%
Profit (loss) margin (GAAP)			20.7		%	19.2		%	150 bps						21.6		%	19.1		%	250 bps
Operating profit (loss) (Non-GAAP)			$	2,299		$	1,818		26		%				$	6,783		$	5,265		29%
Operating profit (loss) margin (Non-GAAP)			20.3		%	20.3		%	0 bps						22.3		%	20.9		%	140 bps
We believe that adjusting revenue provides management and investors with a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding the effect of revenue from our run-off insurance operations. We believe that adjusting profit to exclude the effects of items that are not closely associated with ongoing operations provides management and investors with a meaningful measure that increases the period-to-period comparability. Gains (losses) and restructuring and other items are impacted by the timing and magnitude of gains associated with dispositions, and the timing and magnitude of costs associated with restructuring and other activities. We also use Adjusted revenue* and Operating profit* as performance metrics at the company level for our annual executive incentive plan for 2025.

ADJUSTED NET INCOME (LOSS) (NON-GAAP)			Three months ended September 30																		Nine months ended September 30
(In millions, diluted, per-share amounts in dollars)			2025									2024									2025									2024
			Income			EPS						Income			EPS						Income			EPS						Income			EPS
Net income (loss) from continuing operations (GAAP)			$	2,170		$	2.04					$	1,705		$	1.56					$	6,143		$	5.73					$	4,766		$	4.34
Insurance net income (loss) (pre-tax)			363			0.34						172			0.16						720			0.67						543			0.49
Tax effect on Insurance net income (loss)(b)			(77)			(0.07)						(37)			(0.03)						(85)			(0.08)						(116)			(0.11)
Less: Insurance net income (loss) (net of tax)			287			0.27						135			0.12						635			0.59						427			0.39
U.S. tax equity net income (loss) (pre-tax)			(60)			(0.06)						(59)			(0.05)						(181)			(0.17)						(154)			(0.14)
Tax effect on U.S. tax equity net income (loss)			71			0.07						70			0.06						212			0.20						189			0.17
Less: U.S. tax equity net income (loss) (net of tax)			11			0.01						11			0.01						31			0.03						35			0.03
Non-operating benefit (cost) income (pre-tax) (GAAP)			198			0.19						207			0.19						596			0.56						628			0.57
Tax effect on non-operating benefit (cost) income			(42)			(0.04)						(43)			(0.04)						(125)			(0.12)						(132)			(0.12)
Less: Non-operating benefit (cost) income (net of tax)			157			0.15						164			0.15						471			0.44						496			0.45
Gains (losses) on purchases and sales of business interests (pre-tax)			3			-						356			0.33						3			-						375			0.34
Tax effect on gains (losses) on purchases and sales of business interests			(1)			-						(10)			(0.01)						2			-						(5)			-
Less: Gains (losses) on purchases and sales of business interests (net of tax)			2			-						346			0.32						5			-						371			0.34
Gains (losses) on retained and sold ownership interests and other equity securities (pre-tax)			8			0.01						357			0.33						18			0.02						598			0.54
Tax effect on gains (losses) on retained and sold ownership interests and other equity securities(a)(b)			(1)			-						-			-						-			-						(1)			-
Less: Gains (losses) on retained and sold ownership interests and other equity securities (net of tax)			8			0.01						357			0.33						18			0.02						597			0.54
Restructuring & other (pre-tax)			(22)			(0.02)						(378)			(0.35)						(49)			(0.05)						(525)			(0.48)
Tax effect on restructuring & other			5			-						79			0.07						10			0.01						110			0.10
Less: Restructuring & other (net of tax)			(17)			(0.02)						(298)			(0.27)						(39)			(0.04)						(415)			(0.38)
Goodwill impairments (pre-tax)			-			-						(251)			(0.23)						-			-						(251)			(0.23)
Tax effect on goodwill impairments			-			-						-			-						-			-						-			-
Less: goodwill impairments (net of tax)			-			-						(251)			(0.23)						-			-						(251)			(0.23)
Separation costs (pre-tax)			(53)			(0.05)						(74)			(0.07)						(150)			(0.14)						(408)			(0.37)
Tax effect on separation costs			11			0.01						61			0.06						31			0.03						311			0.28
Less: Separation costs (net of tax)			(42)			(0.04)						(13)			(0.01)						(119)			(0.11)						(97)			(0.09)
Adjusted net income (loss) (Non-GAAP)			$	1,764		$	1.66					$	1,255		$	1.15					$	5,141		$	4.80					$	3,602		$	3.28
(a) Includes tax benefits available to offset the tax on gains (losses) on equity securities.
(b) Includes related tax valuation allowances. Tax effect on Insurance net income includes valuation allowances for 2025.
Earnings-per-share amounts are computed independently. As a result, the sum of per-share amounts may not equal the total.
We believe that Adjusted net income* provides management and investors with useful measures to evaluate the performance of the total company and increased period-to-period comparability, as well as a more complete understanding of underlying operating results and trends of established, ongoing operations by excluding items that are not closely related with ongoing operations. We also use Adjusted EPS* as a performance metric at the company level for our performance stock units granted in 2025.

FREE CASH FLOW (FCF) (NON-GAAP)			Three months ended September 30												Nine months ended September 30												Twelve months ended December 31
(In millions)			2025			2024			V%						2025			2024			V%						2024
Cash flows from operating activities (CFOA) (GAAP)			$	2,556		$	1,913		34		%				$	6,447		$	4,499		43		%				$	5,817
Add: gross additions to property, plant and equipment and internal-use software			(307)			(266)									(842)			(765)									(1,032)
Add: dispositions of property, plant and equipment			51			15									76			102									114
Less: separation cash expenditures			(56)			(144)									(202)			(716)									(800)
Less: Corporate & Other restructuring cash expenditures			(6)			(14)									(51)			(123)									(504)
Free cash flow (FCF) (Non-GAAP)			$	2,362		$	1,820		30		%				$	5,933		$	4,674		27		%				$	6,203
Free cash flow (Non-GAAP) conversion %			134		%	145		%							115		%	130		%							123		%
We believe investors may find it useful to compare free cash flow* performance without the effects of separation cash expenditures and Corporate & Other restructuring cash expenditures (associated with the separation-related program announced in the fourth quarter of 2022). In addition, beginning in the third quarter of 2025, we now include dispositions of property, plant and equipment. We believe this measure will better allow management and investors to evaluate the capacity of our operations to generate free cash flow*. We also use FCF* as a performance metric at the company level for our annual executive incentive plan and performance stock units granted in 2025.

2025 GUIDANCE: 2025 OPERATING PROFIT (NON-GAAP)

We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for Operating profit* in 2025 without unreasonable effort due to the uncertainty of timing of any gains or losses related to acquisitions & dispositions and the timing and magnitude of restructuring expenses. Although we have attempted to estimate the amount of gains and restructuring charges for the purpose of explaining the probable significance of these components, this calculation involves a number of unknown variables, resulting in a GAAP range that we believe is too large and variable to be meaningful.

2025 GUIDANCE: 2025 ADJUSTED EPS (NON-GAAP)

We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for Adjusted EPS* in 2025 without unreasonable effort due to the uncertainty of timing of any gains or losses related to acquisitions & dispositions and the timing and magnitude of restructuring expenses. Although we have attempted to estimate the amount of gains and restructuring charges for the purpose of explaining the probable significance of these components, this calculation involves a number of unknown variables, resulting in a GAAP range that we believe is too large and variable to be meaningful.

2025 GUIDANCE: 2025 FCF (NON-GAAP)

We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for free cash flow* in 2025 without unreasonable effort due to the uncertainty of timing for separation and restructuring related cash expenditures.