GE Aerospace Q1 Orders Up 87%, Revenue Up 29% with $10B Profit Guidance
GE Aerospace reported first-quarter orders surged 87% and revenue climbed 29%, driving an 18% operating profit gain and 25% EPS increase to $1.86 while free cash flow rose 14%. Backlog exceeded $170 billion and the company set 2026 profit guidance of $9.85–$10.25 billion despite 200 bps margin pressure and supply-chain risks.
1. Orders and Revenue Growth
First-quarter orders jumped 87% driven by a near doubling in commercial engine services and a 67% rise in digital, propulsion and testing segment demand. Total revenue climbed 29%, led by a 39% increase in commercial services and 20% growth in equipment, while engine deliveries rose 43%.
2. Profit, Cash Flow and Margins
Operating profit expanded 18% as both core segments posted double-digit gains, and EPS rose 25% to $1.86. Free cash flow increased 14%, although margins contracted by 200 basis points to 21.8% due to higher installed engine growth and investment spending.
3. Backlog and Investment
The segment’s commercial services backlog surpassed $170 billion, providing multi-year visibility into demand. The company is investing $1 billion in US manufacturing sites and achieved a defense book-to-bill above 2 for a second straight quarter.
4. Guidance and Risks
Full-year profit guidance was set at $9.85–$10.25 billion with EPS of $7.10–$7.40 and free cash flow of $8–$8.4 billion. However, a cut to departures outlook, 70% rise in spare-parts delinquency and geopolitical and supply-chain challenges pose downside risks.