Q3 2025 General Electric Co Earnings Call Transcript
Key Points
- GE Aerospace (GE) reported a 26% increase in revenue and profit for the third quarter, driven by strong deliveries across aftermarket, original equipment (OE), and defense.
- The company experienced a 44% growth in EPS to $1.66 and over 130% free cash flow conversion.
- Commercial Engines & Services (CES) saw a 35% increase in operating profit year over year, with services revenue up 28% due to improved material availability.
- Defense & Propulsion Technologies (DPT) achieved a 75% increase in profit, supported by a 26% revenue growth and higher output.
- GE Aerospace (GE) raised its full-year guidance across the board, reflecting strong year-to-date performance and positive fourth-quarter expectations.
- Equipment orders in commercial equipment and defense were partially offset by timing issues, affecting overall order growth.
- Operating margins remained flat at 20.3% due to higher corporate costs and investments, despite margin expansion in both segments.
- The company faces ongoing challenges in improving LEAP turnaround times to meet customer expectations.
- There is a seasonal step-down expected in revenue from Q3 to Q4, largely driven by spare parts.
- GE Aerospace (GE) anticipates 9X losses to more than double year over year in 2026, which could offset some positive service revenue growth.
Good day, ladies and gentlemen, and welcome to the GE Aerospace third-quarter 2025 earnings conference call. (Operator Instructions) My name is Dustin, and I will be your conference coordinator today. (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, Head of Investor Relations. Please proceed.
Thanks, Dustin. Welcome to GE Aerospace's third-quarter 2025 earnings call. I'm joined by Chairman and CEO, Larry Culp; and CFO, Rahul Ghai.
Many of the statements we're making are forward looking and based on our best 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, consistent with prior quarters, will speak to total company and corporate financial results and guidance on a non-GAAP basis.
Now, over to Larry.
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