GE Aerospace boosts 2025 earnings forecast on strong engine demand

By Rajesh Kumar Singh and Shivansh Tiwary (Reuters) -GE Aerospace raised its full-year earnings forecast for a second time in four months on Tuesday, buoyed by robust demand for its commercial jet engines and services. In a sign that its efforts to fix supply constraints are showing results, the aerospace giant reported a jump in engine deliveries and lifted the forecast for LEAP engine deliveries this year. The Ohio-based company now expects adjusted profit per share in a range of $6.00 to $6.20 for 2025, compared with its prior expectation of $5.60 to $5.80. GE Aerospace's shares were up 2.4% in premarket trade. The company dominates the engine market for narrowbody jets and has a strong position in widebodies. More than 70% of its commercial engine revenue comes from parts and services. Limited engine supplies have delayed production of new planes, forcing airlines to keep flying older, less fuel-efficient jets and spend billions on maintenance. That has benefited GE Aerospace, which earns most of its profit from high-margin, long-term contracts for parts and maintenance. "We continue to experience significant demand for our services and products," CEO Larry Culp told analysts on an earnings call. GE reported a 33% jump in third-quarter revenue from servicing engines. Its spare part sales were up more than 25% from a year ago. To fix persistent supply chain bottlenecks, the company has sent its engineers to work directly with its most critical suppliers. It's been working to improve reliability and durability of its engines to reduce maintenance downtime. The measures have driven up jet engine deliveries, which were up 41% in the third quarter from a year ago. Deliveries of LEAP engines, which power narrowbody jets of Airbus and Boeing, were up 40% from a year ago. The company now expects LEAP deliveries to be up more than 20% year-on-year in 2025. That compares with its previous forecast of a 15% to 20% increase. GE Aerospace's adjusted profit per share for the quarter through September jumped 44% to $1.66, beating expectations of $1.45, according to data compiled by LSEG. Its adjusted revenue rose 26% to $11.31 billion. (Reporting by Rajesh Kumar Singh in Chicago and Shivansh Tiwary in Bengaluru. Editing by Arun Koyyur and Mark Potter)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)