GE Aerospace ended Q4 with results above Wall Street’s expectations, but the market reacted negatively as investors weighed operational execution against future risks. Management attributed the strong revenue growth to robust commercial services demand and improved output from both its commercial and defense segments. CEO Larry Culp emphasized the company’s “substantial improvement across all key metrics,” driven by higher shop visit volumes, expanded aftermarket services, and productivity gains from operational streamlining. CFO Rahul Ghai highlighted that increased material availability and better execution on the shop floor led to improved turnaround times, particularly for LEAP and CFM56 engines.
Is now the time to buy GE? Find out in our full research report (it’s free for active Edge members).
GE Aerospace (GE) Q4 CY2025 Highlights:
- Revenue: $12.72 billion vs analyst estimates of $11.18 billion (17.6% year-on-year growth, 13.8% beat)
- Adjusted EPS: $1.57 vs analyst estimates of $1.43 (9.5% beat)
- Adjusted EBITDA: $2.58 billion vs analyst estimates of $2.45 billion (20.3% margin, 5.1% beat)
- Adjusted EPS guidance for the upcoming financial year 2026 is $7.25 at the midpoint, beating analyst estimates by 1.8%
- Operating Margin: 17.9%, in line with the same quarter last year
- Market Capitalization: $306.7 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From GE Aerospace’s Q4 Earnings Call
- John Godden (Citigroup) asked about assumptions behind mid-teen services growth guidance; CEO Larry Culp pointed to strong demand, a stable backlog, and ongoing improvements in supply chain and productivity as supporting factors.
- Myles Walton (Wolfe Research) pressed on LEAP original equipment profitability and required supply chain investments; Culp confirmed LEAP OE should be profitable in 2026 and highlighted ongoing supplier process improvements and capital expansion.
- Douglas Harnett (Bernstein) probed turnaround time improvements for mature engine models; Culp explained that better material availability and process discipline drive productivity, which should translate to higher completed shop visits and improved financials.
- Scott Deuschle (Deutsche Bank) requested quantification of GE9X losses and their impact on segment margins; CFO Rahul Ghai said 2025 losses were in line with expectations and will double in 2026, but the outlook incorporates this headwind.
- Sheila Kahyaoglu (Jefferies) asked for a breakdown of margin drivers in the commercial engine segment; Ghai pointed to strong services growth, rising OE shipments, and increased R&D as key factors affecting flat segment margins.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will be monitoring (1) execution on aftermarket shop visit growth and spare parts availability, (2) progress in reducing maintenance turnaround times and scaling LEAP MRO capacity, and (3) the impact of increased GE9X and OE shipments on overall segment margins. Developments in R&D investment allocation and customer adoption of new durability kits will also be key areas of focus.
GE Aerospace currently trades at $292.23, down from $318.50 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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