Q4 2025 General Electric Co Earnings Call Transcript
Key Points
- GE Aerospace (GE) reported a 74% increase in orders for the fourth quarter, reflecting strong demand for services and equipment.
- Revenue increased by 20% in the fourth quarter, with double-digit growth in both segments.
- EPS rose by 19% to $1.57, and free cash flow grew by 15% in the fourth quarter.
- For the full year 2025, GE Aerospace (GE) achieved a 32% increase in orders and a 21% rise in revenue.
- The company expects substantial revenue, EPS, and cash growth in 2026, with operating profit projected to increase by $1 billion at the midpoint.
- Margins were down 90 basis points to 19.2% in the fourth quarter, as per prior guidance.
- The spare engine ratio was lower than in 2024, impacting revenue growth.
- GE Aerospace (GE) faces continued challenges in meeting customer demand, particularly in the supply chain.
- The company anticipates doubling losses on the GE9X program in 2026 due to increased shipments.
- Free cash flow is expected to be impacted by certain payments in the first quarter of 2026.
Good day, ladies and gentlemen, and welcome to the GE Aerospace fourth-quarter 2025 earnings conference call. (Operator Instructions) My name is Liz, and I will be your conference coordinator today. (Operator Instructions) As a reminder, this conference is being recorded.
I'd 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 fourth quarter and full year 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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