GE Aerospace Soars: Revenue Up 24%, Net Income Jumps 29% in Q3

TL;DR

**GE Aerospace is flying high with massive revenue and profit growth, making it a strong buy as the aviation sector recovers and expands.**

AI Summary

GENERAL ELECTRIC CO (GE) reported a strong third quarter and first nine months of 2025, driven by significant growth in its GE Aerospace segment. For the three months ended September 30, 2025, total revenue increased by $2.3 billion, or 24%, to $12.181 billion, compared to $9.842 billion in the prior year. This was fueled by a 29% increase in equipment revenue to $3.163 billion and a 25% rise in services revenue to $8.143 billion. Net income from continuing operations attributable to common shareholders surged by $0.5 billion to $2.174 billion, resulting in a diluted EPS of $2.04, up from $1.56. For the nine months ended September 30, 2025, total revenue grew by $5.2 billion, or 19%, to $33.138 billion, with net income from continuing operations increasing by $1.4 billion to $6.149 billion, and diluted EPS reaching $5.73, up from $4.34. The company's Remaining Performance Obligation (RPO) also increased by $4.6 billion, or 3%, to $176.285 billion as of September 30, 2025, indicating robust future revenue streams. GE Aerospace is investing $1 billion in U.S. manufacturing and hiring 5,000 U.S. workers, while also navigating supply chain constraints and inflationary pressures through cost productivity and pricing adjustments.

Why It Matters

This strong performance from GE Aerospace signals robust demand in the commercial and defense aviation sectors, which is critical for investors looking for growth in industrial giants. The significant increase in RPO to $176.285 billion provides excellent visibility into future revenue, making GE a more predictable investment. For employees, the $1 billion investment in U.S. manufacturing and the hiring of 5,000 U.S. workers demonstrate a commitment to domestic job creation and operational expansion. Customers benefit from increased engine deliveries and improved service volumes, indicating a healthier supply chain and better support for their fleets, potentially strengthening GE's competitive position against rivals like Raytheon Technologies and Safran.

Risk Assessment

Risk Level: medium — While GE Aerospace shows strong growth, the filing explicitly mentions ongoing 'global material availability and supplier delivery performance continue to cause disruptions' and 'the impact of supply chain constraints and inflation will continue.' These factors, despite mitigation efforts, could still impact production rates and profitability, as evidenced by the need for 'calibrating future production rates' with customers.

Analyst Insight

Investors should consider increasing their exposure to GE, given the strong financial performance and significant RPO. The company's strategic investments in manufacturing and R&D, coupled with new major engine deals, position it well for sustained growth in the aerospace sector. Monitor supply chain improvements and inflation impacts closely, but the current trajectory is positive.

Financial Highlights

debt To Equity

N/A

revenue

$12.181B

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

$2.174B

eps

$2.04

gross Margin

N/A

cash Position

N/A

revenue Growth

+24%

Revenue Breakdown

Key Numbers

• $12.181B — Total Revenue (Q3 2025) (Increased by $2.3 billion or 24% from Q3 2024)
• $2.174B — Net Income from Continuing Operations (Q3 2025) (Increased by $0.5 billion from Q3 2024)
• $2.04 — Diluted EPS (Q3 2025) (Increased from $1.56 in Q3 2024)
• $33.138B — Total Revenue (YTD Q3 2025) (Increased by $5.2 billion or 19% from YTD Q3 2024)
• $6.149B — Net Income from Continuing Operations (YTD Q3 2025) (Increased by $1.4 billion from YTD Q3 2024)
• $5.73 — Diluted EPS (YTD Q3 2025) (Increased from $4.34 in YTD Q3 2024)
• $176.285B — Remaining Performance Obligation (RPO) (Increased by $4.6 billion or 3% from December 31, 2024)
• $1B — Investment in U.S. Manufacturing (Planned investment for 2025)
• 5,000 — U.S. Workers Hired (Planned hiring for 2025)
• 49,000 — Commercial Propulsion Fleet (Installed base of commercial engines)

Key Players & Entities

• GENERAL ELECTRIC COMPANY (company) — Registrant and parent company of GE Aerospace
• GE Aerospace (company) — Operating segment and focus of the 10-Q filing
• Qatar Airways (company) — Customer purchasing over 400 GE engines
• International Airlines Group (company) — Customer purchasing GEnx engines
• ANA Holdings (company) — Customer committing to over 75 LEAP and GEnx engines
• Malaysia Aviation Group (company) — Customer ordering 60 LEAP engines
• Korean Air (company) — Customer agreeing to LEAP, GEnx, and GE9X engines
• Cathay Pacific (company) — Customer committing to GE9X engines
• CFM International (company) — Joint venture developing the RISE program
• U.S. Securities and Exchange Commission (regulator) — Recipient of the 10-Q filing

FAQ

Risk Factors

• Supply Chain Constraints [medium — operational]: GE continues to navigate persistent supply chain constraints, which can impact production schedules and delivery timelines. The company is implementing cost productivity measures and pricing adjustments to mitigate these effects.
• Inflationary Pressures [medium — financial]: Rising inflation poses a risk to GE's cost of goods sold and operating expenses. The company is actively managing these pressures through strategic pricing actions and operational efficiencies.
• Environmental, Social, and Governance (ESG) Compliance [low — regulatory]: Increasingly stringent ESG regulations and stakeholder expectations require continuous investment and adaptation in sustainable practices and reporting. Non-compliance could lead to reputational damage and financial penalties.
• Geopolitical Instability [medium — market]: Global geopolitical events can disrupt international markets, affect demand for GE's products and services, and impact supply chain reliability. This necessitates agile strategic planning and risk mitigation.

Industry Context

GE operates in diverse industrial sectors including aerospace, power generation, and healthcare technology. The aerospace sector is experiencing robust demand for new engines and aftermarket services, while the energy transition is driving investments in renewable and grid solutions. The healthcare technology market remains competitive, with a focus on innovation and efficiency.

Regulatory Implications

GE must comply with various regulations across its operating segments, including aviation safety standards, environmental regulations for power generation, and healthcare device approvals. Changes in international trade policies and sanctions can also impact its global operations and supply chains.

What Investors Should Do

1. Monitor GE Aerospace's performance closely, as it is the primary growth driver, and assess the impact of supply chain and inflation mitigation strategies.
2. Evaluate the progress and integration of GE Vernova as it navigates the energy transition, paying attention to its contribution to overall profitability.
3. Assess the sustainability of GE HealthCare's growth trajectory amidst market competition and evolving healthcare demands.
4. Track the company's ability to manage costs and maintain margins in the face of ongoing inflationary pressures and supply chain challenges.

Glossary

Remaining Performance Obligation (RPO)

The total value of contracted revenue that has not yet been recognized because the work has not yet been performed. (Indicates future revenue streams, with GE's RPO increasing to $176.285 billion, signaling strong future demand.)

Continuing Operations

Refers to the ongoing business activities of a company, excluding any divested or discontinued segments. (Net income from continuing operations is a key indicator of the company's core business profitability, which surged to $2.174 billion in Q3 2025.)

Diluted EPS

Earnings per share calculated by dividing net income by the total number of diluted common shares outstanding. (A key profitability metric for shareholders, showing a significant increase to $2.04 in Q3 2025 from $1.56 in the prior year.)

Segment Operations

Financial reporting that breaks down a company's revenue, profit, and assets by its different business units or divisions. (Essential for understanding the performance drivers within GE, particularly the strong growth in GE Aerospace.)

Year-Over-Year Comparison

Compared to the previous year's filing, GE has demonstrated significant top-line growth, with total revenue up 24% in Q3 2025. Net income and EPS have also seen substantial increases, reflecting improved operational performance. The Remaining Performance Obligation has grown, indicating a strong backlog. No new major risk factors appear to have emerged, but existing risks like supply chain constraints and inflation remain prominent.

Key Financial Figures

• $0.01 — ch registered Common stock, par value $0.01 per share GE New York Stock Exchange
• $1 billion — omestic manufacturing and are investing $1 billion in U.S manufacturing this year and hiri
• $2.3 b — mber 30, 2025 , total revenue increased $2.3 billion, or 24%, compared to the three mo
• $5.2 b — mber 30, 2025 , total revenue increased $5.2 billion, or 19%, compared to the nine mon
• $0.5 billion — me from continuing operations increased $0.5 billion compared to the three months ended Sept
• $0.8 b — ven by an increase in segment profit of $0.8 billion, a decrease in in restructuring a
• $0.4 b — n in restructuring and other charges of $0.4 billion, a decrease in goodwill impairmen
• $0.3 billion — crease in goodwill impairment losses of $0.3 billion and an increase in Insurance profit of
• $0.2 billion — and an increase in Insurance profit of $0.2 billion. The increase was partially offset by a
• $0.3 b — etained and sold ownership interests of $0.3 billion, an increase in Adjusted Corporat
• $0.1 b — crease in provision for income taxes of $0.1 billion, due to higher net income before
• $1.8 b — before taxes. Adjusted net income* was $1.8 billion, an increase of $0.5 billion, due
• $0.5 b — ncome* was $1.8 billion, an increase of $0.5 billion, due to an increase in segment pr
• $2.5 b — ing costs* of $0.3 billion. Profit was $2.5 billion, an increase of $0.6 billion. Pro
• $0.6 billion — Profit was $2.5 billion, an increase of $0.6 billion. Profit margin was 20.7%, an increase f

Filing Documents

• ge-20250930.htm (10-Q) — 1832KB
• ge3q202510qexhibit31a.htm (EX-31.A) — 9KB
• ge3q202510qexhibit31b.htm (EX-31.B) — 9KB
• ge3q202510qexhibit32.htm (EX-32) — 5KB
• ge-20250930_g1.jpg (GRAPHIC) — 3KB
• 0000040545-25-000132.txt ( ) — 11602KB
• ge-20250930.xsd (EX-101.SCH) — 89KB
• ge-20250930_cal.xml (EX-101.CAL) — 160KB
• ge-20250930_def.xml (EX-101.DEF) — 417KB
• ge-20250930_lab.xml (EX-101.LAB) — 965KB
• ge-20250930_pre.xml (EX-101.PRE) — 680KB
• ge-20250930_htm.xml (XML) — 1988KB

Forward-Looking Statements

Forward-Looking Statements 3 About GE Aerospace 4

Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)

Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) 4 Consolidated Results 4 Segment Operations 5 Corporate & Other 7 Other Consolidated Information 8 Capital Resources and Liquidity 9 Critical Accounting Estimates 11 Other Items 11 Non-GAAP Financial Measures 12

Controls and Procedures

Controls and Procedures 14 Other Financial Data 14

Financial Statements and Notes

Financial Statements and Notes 15 Statement of Operations 15 Statement of Financial Position 16 Statement of Cash Flow s 17 Statement of Comprehensive Income (Loss) 18 Statement of Changes in Shareholders' Equity 18 Note 1 Basis of Presentation and Summary of Significant Accounting Policies 19 Note 2 Discontinued Operations 19 Note 3 Investment Securities 21 Note 4 Current and Long-Term Receivables 22 Note 5 Inventories, Including Deferred Inventory Costs 23 Note 6 Property, Plant and Equipment and Operating Leases 23 Note 7 Goodwill and Other Intangible Assets 23 Note 8 Contract and Other Deferred Assets, Contract Liabilities and Deferred Income & Progress Collections 24 Note 9 All Other Assets 24 Note 10 Borrowings 24 Note 11 Accounts Payable 25 Note 12 Insurance Liabilities and Annuity Benefits 25 Note 13 Postretirement Benefit Plans 27 Note 14 Sales Discounts and Allowances & All Other Liabilities 27 Note 15 Income Taxes 27 Note 16 Shareholders' Equity 28 Note 17 Earnings Per Share (EPS) Information 29 Note 18 Other Income (Loss) 29 Note 19 Restructuring Charges and Separation Costs 30 Note 20 Financial Instruments 30 Note 21 Variable Interest Entities 32 Note 22 Commitments, Guarantees, Product Warranties and Other Loss Contingencies 32 Note 23 S egment Information & Remaining Performance Obligation 34 Exhibits 35 Form 10-Q Cross Reference Index 35

Signatures

Signatures 35 FORWARD-LOOKING STATEMENTS. Our public communications and filings we make with the U.S. Securities and Exchange Commission (SEC) may contain statements related to future, not past, events. These forward-looking statements often address our expected future business and financial performance and financial condition, and often contain words such as "expect," "anticipate," "intend," "plan," "believe," "seek," "see," "will," "would," "estimate," "forecast," "target," "preliminary," "range" or similar expressions. Forward-looking statements by their nature address matters that are, to different degrees, uncertain, such as statements about the impacts of macroeconomic and market conditions and volatility on our business operations, financial results and financial position; conditions affecting the aerospace and defense industry, including our customers and suppliers; our expected financial performance, including cash flows, revenue, margins, net income and earnings per share; planned and potential transactions; our credit ratings and outlooks; our funding and liquidity; our cost structures and plans to reduce costs; restructuring, impairment or other financial charges; or tax rates. For us, particular areas where risks or uncertainties could cause our actual results to be materially different than those expressed in our forward-looking statements include: changes in macroeconomic and market conditions and market volatility (including risks related to recession, inflation, supply chain constraints or disruptions, interest rates, values of financial assets, oil, jet fuel and other commodity prices and exchange rates), and the impact of such changes and volatility on our business operations and financial results; market or other developments that may affect demand or the financial strength and performance of airframers, airlines, suppliers and other key aerospace and defense industry participants, such as demand for air travel, supply chain or other prod