GE Aerospace delivered a robust performance for the full year 2025, reporting GAAP revenue of $45.9 billion, an 18% increase year-over-year. Adjusted revenue rose 21% to $42.3 billion, while adjusted EPS surged 38% to $6.37, significantly exceeding analyst expectations. The results were primarily driven by a 26% growth in Commercial Engines & Services (CES) profit, fueled by high-margin aftermarket services and record LEAP engine output exceeding 1,800 units. Total orders for the year reached $66.2 billion, up 32%, supporting a massive $190 billion backlog as the company transitions into its second year as a standalone aerospace leader.
Note: GE Aerospace's FY'25 ended on December 31, 2025.
In January 2026, GE Aerospace announced a significant organizational shift by integrating its Technology & Operations (T&O) team with Commercial Engines & Services (CES). This move aims to accelerate production and cross-functional problem-solving to address supply chain constraints. Concurrently, the company achieved a major defense milestone by successfully demonstrating a Rotating Detonation Ramjet for hypersonic missiles in collaboration with Lockheed Martin. These initiatives highlight GE's pivot toward operational "Lean" efficiency through its Flight Deck model and its expansion into next-generation high-speed propulsion technologies.
Below are key drivers of GE Aerospace's value that present opportunities for upside or downside to the current Trefis price estimate:
For additional details, select a division from the interactive Trefis split for GE Aerospace at the top of the page.
GE Aerospace is a world-leading provider of jet engines, components, and systems for commercial and military aircraft. Following the 2024 spin-off of its energy business, the company operates as a pure-play aerospace entity focused on its massive installed base of approximately 44,000 commercial and 26,000 military engines. Its business model relies on a "razor-blade" strategy where initial engine sales at lower margins are followed by decades of high-margin recurring revenue through maintenance, repair, and overhaul (MRO) services.
The Commercial Engines & Services segment is the primary value driver, contributing over 80% of total operating profit.
GE and its joint ventures power three out of every four commercial aircraft departures globally. This vast installed base creates a multi-decade annuity of service revenue that is largely insulated from the cyclicality of new aircraft sales.
The company's "Flight Deck" operating model has structurally expanded operating margins, which reached 21.4% in 2025. This pricing power, combined with high barriers to entry in jet engine technology, allows GE to maintain a premium valuation relative to industrial peers.
A global shortage of new aircraft is forcing airlines to extend the service life of older planes, triggering a "supercycle" in the MRO market. With the average fleet age rising to 15.1 years in 2025, GE is positioned to capture increased demand for engine overhauls and spare parts through 2026 and beyond.
GE is leading the transition to sustainable aviation through the CFM RISE program, which targets a 20% reduction in fuel consumption. With over 350 tests completed as of early 2026, the industrialization of open-fan technology represents a critical long-term strategic shift to maintain market leadership amid tightening environmental regulations.
