Pulls forward $10B operating profit milestone to 2026, two years early
GE Aerospace reported an outstanding 2025 with strong demand (orders +32%) and solid execution, guiding to another year of double-digit growth in 2026. Management's tone was exceptionally positive, highlighting operational improvements, aftermarket strength, and a robust backlog. 2025 orders grew 32% to reach a record ~$190B backlog, signaling durable demand.
Buzzberg 분석Pulls forward $10B operating profit milestone to 2026, two years earlyGE Aerospace reported an outstanding 2025 with strong demand (orders +32%) and solid execution, guiding to another year of double-digit growth in 2026. Management's tone was exceptionally positive, highlighting operational improvements, aftermarket strength, and a robust backlog. 2025 orders grew 32% to reach a record ~$190B backlog, signaling durable demand.전체 분석 보기분석 접기
GE Aerospace reported an outstanding 2025 with strong demand (orders +32%) and solid execution, guiding to another year of double-digit growth in 2026. Management's tone was exceptionally positive, highlighting operational improvements, aftermarket strength, and a robust backlog. 2025 orders grew 32% to reach a record ~$190B backlog, signaling durable demand.
LEAP deliveries in 2025 exceeded 1,800 units (a record), and LEAP OE is expected to be profitable in 2026.
Commercial services revenue grew 26% in 2025, driven by strong shop visit and spare parts growth.
Management introduced a new segment structure, moving aeroderivative engines from CES to DPT.
Revenue$12.717B
reported
EPS$1.57
reported
Gross margin34.24%
reported
Op margin18.55%
reported
이번 분기에 달라진 점
01
Guidance
Pulls forward $10B operating profit milestone to 2026, two years early
Guidance · revenue to 11.5%
02
Margins
LEAP OE turns profitable in 2026
Reported gross margin was 34.24%, reinforcing the quarter's better-than-guided profitability.
03
Margins
GE9X losses expected to double in 2026
Reported gross margin was 34.24%, reinforcing the quarter's better-than-guided profitability.
Commercial services revenue grew 26% in 2025, driven by strong shop visit and spare parts growth.
AI, 자본지출 및 수요 분석
AI
플랫폼 및 수익화
AI is mentioned only as one driver of higher 2026 corporate costs; there was no discussion of AI demand, products, adoption, or competitive positioning.
수요
수주 및 전환
Management's tone is strongly bullish, guiding to another year of double-digit growth, profit expansion, and record cash flow, underpinned by a robust demand environment and operational improvements.
자본지출
투자 및 생산능력
Capex remains expected at roughly 3% of sales. Investment is targeted at MRO/LEAP capacity, supply-chain expansion, and US manufacturing, including over $1B in MRO with about $500M earmarked for LEAP.
톤 · Upbeat
Management repeatedly described results as 'outstanding,' highlighted robust demand and backlog growth, and guided to substantial 2026 profit and cash flow growth.
공급망 알파
A1
LEAP OE profitability expected in 2026, a key milestone. Profit losses from GE9X are expected to double year-over-year as shipments increase.
“we expect LEAP OE to be profitable in 2026 as per our prior plans.”
The supply chain bottleneck is easing; priority supplier inputs were up over 40% YoY, enabling better output and a 10% improvement in shop visit turnaround times.
“material input from our priority suppliers growing over 40% year over year in 2025, and up double digits sequentially in the fourth quarter”
Delta's selection of the GENX for 30 787s is a key commercial win, adding a new marquee wide-body customer and expanding GE's aftermarket services installed base.
“Delta, a new GENX customer, selected us to power and service their new fleet of 30 Boeing 787s”
… We recently completed a ground test campaign demonstrating our first hybrid electric narrow-body engine architecture. This first-of-its-kind propulsion milestone demonstrates systems integration, advancing the technology from concept to practical, scalable application. As we deliver greater customer value and advanced breakthrough technologies, We're growing our backlog. At the Dubai Air Show, we've recorded over 500 engine wins across narrowbodies and widebodies, including Riyadh Air's commitment for 120 LEAP-1A engines and FlyDubai's selection of 60 GENX engines. Additionally, Pegasus Airlines committed to up to 300 LEAP-1B engines to power its future Boeing 737-10 fleet. And we're honored that Delta, a new GENX customer, selected us to power and service their new fleet of 30 Boeing 787s. In defense, Hindustan Aeronautics ordered 113 F-404 engines for the Tejas fighter jets, demonstrating our position as a trusted partner for allied fighter programs. Overall, we're driving progress, improving field performance, turnaround times, and advancing future propulsion technologies. We're well positioned to strengthen our leadership across both the commercial and defense sectors in 2026.
Mentions of Boeing 737-10 and 787 wins indicate continued demand for Boeing airframes, positively impacting their backlog and production outlook, though not a direct statement about Boeing's trajectory.
“Pegasus Airlines committed to up to 300 LEAP-1B engines to power its future Boeing 737-10 fleet”
… We recently completed a ground test campaign demonstrating our first hybrid electric narrow-body engine architecture. This first-of-its-kind propulsion milestone demonstrates systems integration, advancing the technology from concept to practical, scalable application. As we deliver greater customer value and advanced breakthrough technologies, We're growing our backlog. At the Dubai Air Show, we've recorded over 500 engine wins across narrowbodies and widebodies, including Riyadh Air's commitment for 120 LEAP-1A engines and FlyDubai's selection of 60 GENX engines. Additionally, Pegasus Airlines committed to up to 300 LEAP-1B engines to power its future Boeing 737-10 fleet. And we're honored that Delta, a new GENX customer, selected us to power and service their new fleet of 30 Boeing 787s. In defense, Hindustan Aeronautics ordered 113 F-404 engines for the Tejas fighter jets, demonstrating our position as a trusted partner for allied fighter programs. Overall, we're driving progress, improving field performance, turnaround times, and advancing future propulsion technologies. We're well positioned to strengthen our leadership across both the commercial and defense sectors in 2026.
A significant defense order for India's Tejas program underscores robust international demand for military engines and strengthens GE's defense backlog.
“Hindustan Aeronautics ordered 113 F-404 engines for the Tejas fighter jets, demonstrating our position as a trusted partner for allied fighter programs.”
… We recently completed a ground test campaign demonstrating our first hybrid electric narrow-body engine architecture. This first-of-its-kind propulsion milestone demonstrates systems integration, advancing the technology from concept to practical, scalable application. As we deliver greater customer value and advanced breakthrough technologies, We're growing our backlog. At the Dubai Air Show, we've recorded over 500 engine wins across narrowbodies and widebodies, including Riyadh Air's commitment for 120 LEAP-1A engines and FlyDubai's selection of 60 GENX engines. Additionally, Pegasus Airlines committed to up to 300 LEAP-1B engines to power its future Boeing 737-10 fleet. And we're honored that Delta, a new GENX customer, selected us to power and service their new fleet of 30 Boeing 787s. In defense, Hindustan Aeronautics ordered 113 F-404 engines for the Tejas fighter jets, demonstrating our position as a trusted partner for allied fighter programs. Overall, we're driving progress, improving field performance, turnaround times, and advancing future propulsion technologies. We're well positioned to strengthen our leadership across both the commercial and defense sectors in 2026.
MTX
비상장 기업
파트너
Expanding the MRO network with MTU is a positive signal for MTU as it deepens its role in the LEAP aftermarket, supporting long-term growth for MTU's MRO segment.
… and GE90 turnaround times, improving over 10% year-over-year in the fourth quarter. Additionally, at our Wales facility, CFM56 turnaround time improved by 20%, and at Selma, we sustained turnaround times below 80 days. This enabled us to deliver our highest LEAP shop visit output of the year. With LEAP installed, they're expected to roughly triple between 24 and 30. We're expanding capacity across our global MRO network to support aftermarket demand. In 2025, we added MTU Dallas as our sixth premier MRO partner, supporting third-party shop visit growth, now representing around 15% of total LEAP shop visits. We're dedicating approximately $500 million of our more than $1 billion of investment in MRO to leak. This includes expanding several MRO sites, including Malaysia, Selma, and Dallas, and a new on-wing support facility in Dubai. We expect these investments will roughly double LEAP internal capacity. Taken together, these actions drove meaningful progress in services and equipment output in 2025. CES services revenue increased 26%, with internal shop visit revenue up 24%, including LEAP internal shop visit volume up 27%. Spare parts revenue grew more than 25%. Deliveries …
CFM56 retirements are expected to be ~2% in 2026, lower than previously guided (2-3%), implying the mature engine is 'stronger for longer'. — Sustained demand for CFM56 engines pushes out the expected peak in shop visits, providing longer-duration aftermarket revenue tailwinds for GE and its partner, RTX's Pratt & Whitney.
Hey, thanks for taking my question. I was hoping you could elaborate a bit on the commercial aftermarket backdrop. Obviously, it was a great services quarter with revenue growth accelerating versus last quarter. So, I'm just curious to what extent this momentum has carried through to start the year. And if you could just unpack some of the assumptions underlying the mid-teen services growth guidance for 2026, is there any room there to outperform if recent momentum continues? Thank you.
Just a couple of things. John, welcome to our call here. Just as we said in our prepared remarks, we expect both shop visits and spare parts to be up kind of the same range as mid-teens as the overall services growth. On spare parts first, our delinquency when we ended 2025 was up 50% over where we ended 24. So as Larry mentioned, strong demand environment. And as you think about the spare parts growth, the spare parts growth is going to be primarily driven by narrow body. And that's coming as a LEAP external channel continues to grow. And about more than 15% of the LEAP shop visits are now performed by a third party channel partner. And CFM 56 continues to be strong as well. Larry mentioned in his prepared remarks about how we ended 25 retirements, which were similar to 24. And as we think about 2026, we expect retirements to be in the 2% range. Our prior expectations were 2% to 3% range, so trending a little bit better. And that puts CFM shop visits in the 23 to 2400 range between 26 and 28. So external demand environment looks good. Shop visits, same thing. We're expecting double-digit removals this year from engines that they've already flown, plus the work scope continues to increase, a little bit of price, all that adds to that 15% growth that we mentioned on shop visits. So overall, feel good about the services outlook for 26.
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