GE Aerospace reported a surge in first-quarter orders and revenue, beating market expectations and signalling continued momentum in both its commercial and defence businesses despite a volatile geopolitical backdrop.
The company said total orders jumped 87% year-on-year to $23.0 billion, while GAAP revenue rose 25% to $12.4 billion. On an adjusted basis, revenue reached $11.6 billion, up 29%, exceeding analyst expectations by about $890 million.
Profitability showed mixed trends. Adjusted earnings remained strong, with operating profit rising 18% to $2.5 billion and adjusted earnings per share increasing 25% to $1.86, beating consensus by $0.26. However, GAAP net income slipped 2% to $2.2 billion, and margins came under pressure as the company ramped production and absorbed cost increases.
Operating margin declined 200 basis points to 21.8%, while GAAP margin fell 490 basis points to 17.7%, reflecting a combination of cost inflation, investment in capacity, and business mix.
Cash generation remained solid, with cash from operations rising 21% to $1.9 billion and free cash flow up 14% to $1.7 billion, supported by strong aftermarket activity.
Driving performance
Growth was underpinned by a sharp increase in engine deliveries and maintenance activity. GE said total engine deliveries rose 43% year-on-year, while Commercial Engines & Services revenue increased 39%, helped by improved material flows from suppliers.
The company also secured major commercial orders, including more than 300 LEAP-1A engines for American Airlines, 300 GEnx engines for United Airlines, 60 GEnx engines for Delta Air Lines and a long-term materials agreement with Ryanair covering around 2,000 engines.
In defence, GE secured follow-on contracts for T408 engines supporting the US Marine Corps and a development contract with the US Air Force for the GEK1500, a next-generation engine for collaborative combat aircraft in partnership with Kratos Defense & Security Solutions.
Strategic positioning
GE said it will invest $1 billion in US manufacturing and its supplier base for a second consecutive year, aiming to accelerate engine output, improve durability and strengthen the defence industrial base.
The company also expanded its global maintenance, repair and overhaul (MRO) network, adding Iberia as a seventh LEAP engine Premier MRO provider and broadening capabilities at Delta TechOps.
In parallel, GE is advancing next-generation propulsion technologies, announcing Singapore as the first airport testbed for Open Fan technology under the CFM RISE programme.
Outlook and order backlog
Chairman and CEO H. Lawrence Culp said the company delivered a “strong first quarter” with growth in orders, revenue and cash flow, adding that its large services backlog and modern fleet position it well despite a “dynamic geopolitical environment.”
GE maintained its full-year guidance and said it is trending toward the upper end of its outlook after the strong start. The company expects low double-digit revenue growth (around 10–12%) in 2026 and adjusted EPS of $7.10 to $7.40, slightly below the $7.46 consensus forecast.
A key underpinning of the outlook is GE’s $170 billion commercial services backlog, which provides long-term earnings visibility even as supply chains and fuel costs remain volatile.
The results highlight the resilience of the aerospace aftermarket cycle, with airlines continuing to invest heavily in engine maintenance and upgrades as they seek to maximise fleet availability in a constrained supply environment.