MW GE Aerospace affirms outlook even after including tariff impact. Its stock is rising.

By Tomi Kilgore

GE extends streak of profit, revenue and free cash flow beats, amid strength in the commercial engines business

Shares of GE Aerospace $(GE)$ were headed higher in early Tuesday trading, after the jet-engine maker beat first-quarter earnings expectations. More importantly, the company affirmed its full-year outlook even when including the estimated impact of tariffs.

Chief Executive Larry Culp said GE kept its guidance intact because of a number of actions GE took to manage the current "macroeconomic dynamics," including controlling costs and pricing actions.

The stock rose 0.9% in premarket trading. That comes after the stock fell 4.1% amid a four-day losing streak through Monday.

The company, which officially converted from General Electric Co. on April 2, 2024, said it still expects 2025 adjusted revenue growth in the low-double-digit percentage range and adjusted earnings per share of $5.10 to $5.45.

GE still expects 2025 free cash flow of $6.3 billion to $6.8 billion.

GE said its full-year guidance "now assumes impact of announced tariffs, net of actions."

For the first quarter to March 31, the company reported net income that rose to $1.98 billion, or $1.85 a share, from $1.54 billion, or $1.41 a share, in the same period a year ago.

Excluding nonrecurring items, adjusted EPS increased to $1.49 from 93 cents, to beat the average analyst estimate compiled by FactSet of $1.27. That marked the ninth straight quarter that GE beat bottom-line expectations.

Total revenue grew 10.9% to $9.94 billion, above the FactSet consensus of $9.73 billion.

Among GE's business segments, commercial engines and services revenue was up 14.5% to $6.98 billion and orders jumped 15.2% to $9.58 billion, while defense and propulsion technologies revenue rose 0.5% to $2.32 billion and orders were flat at $3.03 billion.

Free cash flow declined 13.7% to $1.44 billion, but topped Wall Street expectations of $1.22 billion.

GE's stock has gained 6.9% year to date through Monday, while the S&P 500 index SPX has dropped 12.3%.

-Tomi Kilgore

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April 22, 2025 07:16 ET (11:16 GMT)

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