MW GE to keep pushing for zero tariffs, as U.S. aerospace was winning without them

By Tomi Kilgore

GE Aerospace's stock surges as full-year outlook is kept intact, even after including an estimated $500 million cost from tariffs

Shares of GE Aerospace climbed Monday, after the jet-engine maker held firm with its full-year earnings outlook, even when including an estimated $500 million impact from tariffs.

Chief Executive Larry Culp said on the post-earnings call with analysts that while the Trump administration negotiates with its trade partners over announced tariffs, GE Aerospace $(GE)$ will continue to push for "zero-for-zero" tariffs in the aviation sector.

"Our industry has a nearly $75 billion trade surplus, the highest trade balance of any sector, and exports more than $135 billion of products each year," Culp said, according to an AlphaSense transcript. "This is possible because the global aviation sector has long operated without tariffs on civil aircraft, engines and avionics."

In the meantime, he said heightened tariffs will lead to higher costs for GE and for the supply chain. By controlling costs and expanding foreign trade zones, Culp believes GE can lower the cost from tariffs for the year to roughly $500 million.

But even including those new cost estimates, the company 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.

The stock rallied 3.4% in morning trading. That put it on track to snap a four-session losing streak in which it shed 4.1%.

For the 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. (GE Aerospace officially converted from General Electric Co. on April 2, 2024.)

Excluding nonrecurring items, adjusted earnings per share increased to $1.49 from 93 cents, to beat the average analyst estimate compiled by FactSet of $1.27. That marked the 10th straight quarter that GE has 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 risen 10.6% in 2025, while the iShares U.S. Aerospace & Defense exchange-traded fund ITA has inched up 0.1% and the S&P 500 index SPX has dropped 11.3%.

-Tomi Kilgore

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April 22, 2025 09:44 ET (13:44 GMT)

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