GE Aerospace reports over 20% growth in Q2 profits amid engine demand

According to Reuters, there is strong demand for maintenance services as operators keep older aircraft in service due to delivery delays. GE Aerospace benefits from selling engines at lower upfront costs while profiting from long-term contracts for maintenance and spares.

GE Aerospace Chairman and CEO H. Lawrence Culp Jr stated: "The GE Aerospace team delivered an excellent second quarter with free cash flow nearly doubling and more than 20% growth in orders, revenue, operating profit, and EPS."

Between May and June, the value of orders in the commercial division increased by 28%, reaching $11.69 billion from $9.15 billion in Q2 2024. A notable deal was signed with Qatar Airways for over 400 engines, including options and spares for Boeing aircraft ordered during President Donald Trump's visit to Doha.

The CES division's revenue grew by 30%, driven by spare parts and internal shop visit revenue. Equipment revenue also increased by 35%.

GE maintains a strong market position through CFM International, its joint venture with France’s Safran, which powers many single-aisle jets like the Boeing 737 MAX and Airbus A320neos.

Looking ahead, GE raised its guidance for operating profit in 2025 to between $8.2 - $8.5 billion and expects mid-teens revenue growth as of July 2025.

Despite these positive results, GE faces production challenges due to supply-chain constraints and tariffs imposed during Donald Trump's administration that have increased costs across the industry.