GE Aerospace Q4 Earnings & Revenues Top Estimates, Increase Y/Y

GE Aerospace GE reported fourth-quarter 2025 results, wherein both revenues and earnings surpassed the Zacks Consensus Estimate.It is worth noting that in April 2024, GE Aerospace emerged as a separate public company, following the spin-off of GE Vernova Inc. GEV from General Electric.Inside GE’s HeadlinesThe company’s fourth-quarter adjusted earnings were $1.57 per share, which beat the Zacks Consensus Estimate of $1.44. The bottom line surged 19% year over year.Total revenues were $12.7 billion, indicating a year-over-year increase of 18%. Total orders soared 74% on a year-over-year basis to $27 billion.Adjusted revenues were $11.87 billion, marking a year-over-year increase of 20%. The metric beat the consensus estimate of $11.26 billion.For 2025, GE Aerospace reported adjusted revenues of $42.3 billion, reflecting an increase of 21% year over year. The company’s adjusted earnings were $6.37 per share, up 38% year-over-year.GE’s Segmental Discussion in Q4Revenues from the company’s Commercial Engines & Services business jumped 24% year over year to $9.47 billion. The Zacks Consensus Estimate for the business’ revenues was pegged at $9.09 billion. The results were driven by higher shop visit work scope, increased revenues from spare parts and equipment and favorable pricing. Total orders in the segment rose 76% year over year to $22.8 billion.The Defense & Propulsion Technologies segment’s revenues totaled $2.84 billion, up 13% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.73 billion. Results benefited from the strong momentum in the Defense & Systems and Propulsion & Additive Technologies businesses. Total orders in the segment increased 61% year over year to $4.57 billion.GE Aerospace Price, Consensus and EPS Surprise GE Aerospace price-consensus-eps-surprise-chart | GE Aerospace QuoteGE’s Margin ProfileGE Aerospace’s cost of sales (comprising costs of equipment and services sold) surged 23.7% year over year at $8.36 billion. Selling, general and administrative expenses decreased 13.8% year over year to $997 million. Research and development expenses totaled $448 million, reflecting a year-over-year rise of 16.4%.GE Aerospace’s operating profit (non-GAAP) was $2.3 billion, up 14% year over year. The margin was 19.2%, contracting 90 basis points (bps) year over year.GE Aerospace’s Balance Sheet & Cash FlowExiting the fourth quarter of 2025, GE Aerospace had cash, cash equivalents and restricted cash of $12.4 billion compared with $13.6 billion at the end of December 2024. The company’s long-term borrowings were $18.8 billion compared with $17.2 billion at the end of December 2024.In the fourth quarter, the adjusted free cash flow was $1.76 billion compared with $1.53 billion in the year-ago quarter.GE’s OutlookFor 2026, GE expects adjusted revenues to grow in the low-double-digit range from the year-ago period's actual. Operating profit is estimated to be in the band of $9.85-$10.25 billion. Adjusted earnings are predicted to be in the range of $7.10-$7.40 per share. The free cash flow is anticipated to be in the band of $8.0-$8.4 billion, with the conversion rate projected to be more than 100%.GE Aerospace expects the Commercial Engines & Services segment’s revenues to grow in the mid-teens range, whereas operating profit is anticipated to be in the band of $9.60-$9.90 billion. For the Defense & Propulsion Technologies segment, revenues are projected to increase in the mid-to-high single-digit range, whereas operating profit is anticipated to be in the band of $1.55-$1.65 billion.Zacks Rank and Stocks to ConsiderThe company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.A couple of better-ranked stocks from the same space are discussed below:Huntington Ingalls Industries, Inc. HII presently carries a Zacks Rank #2 (Buy). Huntington Ingalls’ earnings surpassed the consensus estimate thrice and missed once in the trailing four quarters. The average earnings surprise was 14.5%. In the past 60 days, the Zacks Consensus Estimate for HII’s 2025 earnings has inched up 0.4%.Kratos Defense & Security Solutions, Inc. KTOS currently carries a Zacks Rank of 2. Kratos Defense’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 29.2%.  In the past 60 days, the Zacks Consensus Estimate for Kratos Defense’s 2025 earnings has been stable.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GE Aerospace (GE): Free Stock Analysis Report Huntington Ingalls Industries, Inc. (HII): Free Stock Analysis Report Kratos Defense & Security Solutions, Inc. (KTOS): Free Stock Analysis Report GE Vernova Inc. (GEV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks