Q2 2025 General Electric Co Earnings Call Transcript
Key Points
- GE Aerospace (GE) reported a strong second quarter with a 23% increase in revenue, driven by a 30% growth in Commercial Engines & Services (CES) and a 7% increase in Defense & Propulsion Technologies (DPT).
- The company raised its 2025 guidance, expecting mid-teens revenue growth, driven by improved services outlook and material availability.
- GE Aerospace (GE) has a robust backlog of over $175 billion, with commercial services backlog exceeding $140 billion, supporting long-term growth.
- The company is making significant advancements in technology, including AI-enabled tools for engine inspections and the development of the CFM RISE program, which promises a 20% reduction in fuel burn.
- GE Aerospace (GE) is expanding its capacity, with plans to grow internal and external capacity by approximately 40% by the end of the decade, supported by a $1 billion investment in MRO and component repair facilities.
- The company faces ongoing supply chain challenges, with material delivery environments expected to remain tight, contributing to higher inflationary pressures.
- GE Aerospace (GE) anticipates a couple of hundred million dollars of profit headwind in 2025 due to initial shipments of the GE9X engine, which have the highest losses.
- There is uncertainty in the macroeconomic environment, which could impact the company's expectations for spare part sales in the second half of the year.
- The company expects retirements of CFM56 engines to increase, which could affect shop visit volumes and revenue.
- Despite improvements, the company acknowledges that it still has more work to do to improve turnaround times for certain engine platforms.
Good day, ladies and gentlemen, and welcome to the GE Aerospace investor update and second-quarter 2025 earnings webcast. (Operator Instructions) As a reminder, this conference is being recorded.
I would now like to turn the program over to your host for today's conference, Blaire Shoor from the GE Aerospace Investor Relations team. Please proceed.
Thanks, Liz. Welcome to GE Aerospace's 2025 Investor Update and 2Q '25 Earnings Call. I'm joined by Chairman and CEO, Larry Culp; and CFO, Rahul Ghai. Today, we will be sharing an update on our second-quarter 2025 results, financial guidance for 2025, and outlook for 2028, followed by a Q&A session.
As usual, many of the statements we're making are forward looking and based on our view of the world and our businesses as we see them today. As described in our SEC filings and website, those elements may change as the world changes. Additionally, Larry and Rahul will speak to total company and corporate financials as well as our guidance and
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