GE Aerospace reported a 14% growth in orders to $8.2bn in the first quarter of 2023 (Q1 2023), with revenue up 25% year-on-year to $7bn.
Operating profit was up 46% to over $1.3bn, with commercial services growing on the back of "higher internal shop visits and strong external spare part sales" and "significantly higher" deliveries of LEAP engines, which were up 53% over the period, according to parent company General Electric (GE).
"Segment margin of 19.0% expanded by 280 basis points reported and 240 basis points organically," GE said, outcomes that were "driven by higher volume, price and productivity."
"At GE Aerospace, we are growing rapidly and supporting our customers amidst the pronounced commercial ramp," said chief executive H. Lawrence Culp Jr.
A highlight for the quarter was the company's agreement with Air India for its biggest-ever LEAP order, for 800 engines, as well as the Tata-owned carrier's order of 40 GEnx and 20 GE9X engines and related services agreements.
"Overall, GE Aerospace is supporting customers amidst the pronounced ramp, driving continued profit growth and higher cash generation," GE said in its earnings announcement.
The aerospace results were part of what Culp Jr., who is also GE chairman and chief executive, described as an "encouraging start in 2023" for GE, which reported $17.6bn worth of orders and adjusted revenue of $13.7bn across its businesses.
The results, the chief executive said, reflected "robust market demand and our progress operating a leaner and more focused businesses".
The company raised its adjusted earnings-per-share (EPS) forecast to $1.70 - $2.00 and free cash flow to $3.6bn - $4.2bn, up from adjusted EPS of $1.60 - $2.00 and free cash flow of $3.4bn - $4.2bn.