GE · GE Aerospace

GE Aerospace delivered a robust first quarter with total orders surging 87% to $23.0 billion, driven by strong commercial services backlog growth and significant engine wins. Adjusted revenue increased 29% to $11.6 billion, with Commercial Engines & Services (CES) revenue up 34% and Defense & Propulsion Technologies (DPT) revenue growing 19%. Operating profit rose 18% to $2.5 billion, though operating profit margin declined 200 basis points to 21.8% due to mix, investments, and inflation. Adjusted EPS increased 25% to $1.86, and free cash flow grew 14% to $1.7 billion. Management highlighted a $170 billion commercial services backlog and recent commercial wins for over 650 engines, including agreements with American Airlines, United Airlines, and Delta Airlines. The company is maintaining its full-year 2026 guidance but trending toward the higher end of the ranges, with assumptions including elevated Brent crude oil prices through Q3, fuel availability impacts, reduced global GDP estimates, and flat to low-single-digit departures growth. CEO H. Lawrence Culp emphasized the FLIGHT DECK strategy's focus on customer value through output improvements, durability enhancements, and cost reductions.