Outlook
Robust services growth drives strong 2Q, raising full-year guidance across the boardGuidance raised
Results
Total orders of $16.5B, +17%;
Total revenue (GAAP) of $13.3B, +21%; adjusted revenue* $12.6B, +24%;
Profit (GAAP) of $2.8B, +17%; operating profit* $2.7B, +18%;
Profit Margin (GAAP) of 21.0%, (70) bps; operating profit margin* 21.7%, (130) bps;
Continuing EPS (GAAP) of $2.30, +23%; adjusted EPS* $2.02, +22%;
Cash from operating activities (GAAP) of $3.3B, +39%; free cash flow* $3.0B, +43%
Management commentary
GE Aerospace Chairman and CEO H. Lawrence Culp, Jr., said, “GE Aerospace delivered a strong second quarter with revenue and EPS both up more than 20% driven by robust commercial services growth.
FLIGHT DECK continues to fuel significant operational improvements across services and equipment with record internal shop visit output in the quarter and 31% growth in total engine deliveries in the first half.”
Outlook
1Culp continued, “Given our exceptional year-to-date performance and visibility for the remainder of the year, we are raising our full-year guidance across the board.Guidance raised
As we look forward, we remain focused on advancing what matters most for our customers: delivering on our over $210 billion backlog while investing in current and next-generation technology to improve time-on-wing and cost of ownership.”
Results
Increased material input from priority suppliers double-digits sequentially and year-over-year, contributing to Commercial Engines & Services (CES) services revenue up 32% in the first half of the year, including record internal shop visit output in the quarter.
Total engine deliveries increased 31% in the first half, including LEAP deliveries up 41%.
Corporate events
7Recorded several wins across commercial and defense, including agreements with Copa Airlines for up to 120 LEAP-1B engines , with Turkish Aerospace for F404 engines to power its HÜRJET advanced jet trainer program, and with Leonardo Helicopters for CT7 engines to power the UK Ministry of Defence’s New Medium Helicopter program.
8Completed certification for the LEAP-1B durability kit, including the upgraded HPT blade, which is expected to deliver ~2x improvement in time-on-wing, with full cutover expected beginning of 2027.
Continued to advance next-generation defense propulsion by successfully completing Assembly Readiness Review of the XA102 engine and secured a contract with the U.S. Air Force to mature the GE426 engine through preliminary design review to support their medium thrust class Autonomous Collaborative Platform.
Successfully completed the first ground tests of the megawatt-class hybrid-electric engine system developed through NASA’s Electrified Powertrain Flight Demonstration (EPFD) project, paving the way for flight tests.
Results
Total Company Results & Guidance
Outlook
GE Aerospace Full-Year 2026 Guidance:
Based on GE Aerospace's performance in the first half of 2026 and expectations for the remainder of the year, the company is raising guidance across the board and now expects:Guidance raised
20252026 Guide Prior2026 Guide Current
Adjusted Revenue* Growth Adjusted Revenue*' +21% $42.3BLDDHigh-teens
Operating Profit* Operating profit margin*$9.1B 21.4%$9.85 - $10.25B$10.55 - $10.75B
Adjusted EPS*$6.37$7.10 - $7.40$7.65 - $7.85
Free Cash Flow* FCF* conversion -b)$7.7B 113%$8.0 - $8.4B >100%$8.9 - $9.2B >100%
(b – FCF* conversion: FCF* / adjusted net income*
Results and Guidance by Reporting Segment
Results
Commercial Engines & Services (CES)
For the quarter, orders of $12.9 bil lion increased 18%, with services increasing 22% and equipment increasing 7% .
Revenue of $9.7 billion was up 27%.
Services grew 26% with internal shop visit revenue up 25% and spare parts revenue up over 25%.
6Equipment revenue grew 30%, driven by unit volume up 26%, including LEAP up 24%.
Profit of $2.7 billion was up 20% from higher services volume, and price.
Margins contracted (160) basis points from in stall engine growth (including GE9X), investments, and inflation.
Outlook
2In 2026, CES now expects revenue growth of ~20%, up from our prior outlook of mid-teens, driven by higher services revenue, which we now expect to grow low 20s, up from mid-teens, and equipment revenue growth of ~20%, up from mid-to-high teens.Guidance raised
3Operating profit is expected to be in the range of $10.25-$10.35 billion, up from our prior guide of $9.6-$9.9 billion.Guidance raised
Results
For the quarter, orders of $4.1 billion were up 12%.
Revenue of $3.4 billion grew 16%.
Defense & Systems revenue was up 12% with growth in both services and equipment, including deliveries up 7%.
Propulsion & Additive Technologies revenue increased 23% with strong growth driven by Avio Aero.
Profit of $475 million was up 18% and margins increased 30 basis points from increased volume and price, partially offset by mix, investments, and inflation.
Outlook
4In 2026, DPT now expects revenue growth of low double digits, up from our prior guide of mid- to high-single-digits.Guidance raised
5DPT expects operating profit of $1.6-$1.7 billion, up from our prior guide of $1.55-$1.65 billion.Guidance raised
2026 GUIDANCE: 2026 OPERATING PROFIT (NON-GAAP)
We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for Operating profit* in 2026 without unreasonable effort due to the uncertainty of timing of any gains or losses related to acquisitions & dispositions, the timing and magnitude of the financial impact related to the mark-to-market of our investment in BETA Technologies, Inc. and the timing and magnitude of restructuring expenses.
Although we have attempted to estimate the amount of gains and restructuring charges for the purpose of explaining the probable significance of these components, this calculation involves a number of unknown variables, resulting in a GAAP range that we believe is too large and variable to be meaningful.
2026 GUIDANCE: 2026 ADJUSTED EPS (NON-GAAP)
We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for Adjusted EPS* in 2026 without unreasonable effort due to the uncertainty of timing of any gains or losses related to acquisitions & dispositions, the timing and magnitude of the financial impact related to the mark-to-market of our investment in BETA Technologies, Inc. and the timing and magnitude of restructuring expenses.
Although we have attempted to estimate the amount of gains and restructuring charges for the purpose of explaining the probable significance of these components, this calculation involves a number of unknown variables, resulting in a GAAP range that we believe is too large and variable to be meaningful.
2026 GUIDANCE: 2026 FCF (NON-GAAP)
We cannot provide a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measure for free cash flow* in 2026 without unreasonable effort due to the uncertainty of timing for capital expenditures and restructuring related cash expenditures.
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