GE Aerospace 8-K
PositiveEarningsGuidance raised
Commercial Engines & Services growth drives higher full-year guidance; install-engine growth, investment and inflation squeeze segment margins.
Filed 2026-07-16 06:32 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with higher FY2026 guidance. Revenue and EPS grew more than 20% Y/Y, driven by commercial services growth; GE Aerospace raised its full-year outlook across the board on first-half performance and expected second-half visibility.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Revenue, GAAP | $13.3B | $11.0B | +21% |
| Revenue, adjusted, non-GAAP | $12.6B | $10.2B | +24% |
| Profit, GAAP | $2.80B | $2.39B | +17% |
| Operating profit, non-GAAP | $2.75B | $2.34B | +18% |
| Profit margin, GAAP | 21.0% | 21.7% | (70) bp |
| Operating profit margin, non-GAAP | 21.7% | 23.0% | (130) bp |
| Continuing EPS, GAAP | $2.30 | $1.87 | +23% |
| Adjusted EPS, non-GAAP | $2.02 | $1.66 | +22% |
| Cash from operating activities, GAAP | $3.26B | $2.35B | +39% |
| Free cash flow, non-GAAP | $3.03B | $2.12B | +43% |
- Total orders were $16.5B, up 17%; backlog exceeded $210B. Commercial Engines & Services (CES) revenue rose 27%, with services up 26%; Defense & Propulsion Technologies revenue rose 16%.
- CES profit increased on higher services volume and price, while its margin contracted 160 bp due to install-engine growth, investment and inflation. GE Aerospace also cited record internal shop-visit output and first-half engine deliveries up 31%, including LEAP deliveries up 41%.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Adjusted revenue growth, non-GAAP | FY2026 | High-teens | Low double digits | Raised |
| Operating profit, non-GAAP | FY2026 | $10.55-$10.75B | $9.85-$10.25B | Raised |
| Adjusted EPS, non-GAAP | FY2026 | $7.65-$7.85 | $7.10-$7.40 | Raised |
| Free cash flow, non-GAAP | FY2026 | $8.9-$9.2B | $8.0-$8.4B | Raised |
| Free cash flow conversion, non-GAAP | FY2026 | >100% | >100% | Reaffirmed |
| Revenue growth, CES | FY2026 | ≈20% | Mid-teens | Raised |
| Services revenue growth, CES | FY2026 | Low 20s | Mid-teens | Raised |
| Equipment revenue growth, CES | FY2026 | ≈20% | Mid-to-high teens | Raised |
| Operating profit, CES | FY2026 | $10.25-$10.35B | $9.6-$9.9B | Raised |
| Revenue growth, Defense & Propulsion Technologies | FY2026 | Low double digits | Mid-to-high single digits | Raised |
| Operating profit, Defense & Propulsion Technologies | FY2026 | $1.6-$1.7B | $1.55-$1.65B | Raised |
Investor Takeaways
- Watch second-half execution against the raised FY2026 ranges, particularly services growth and delivery of the company’s backlog.
- The LEAP-1B durability-kit cutover is expected to begin in early 2027; GE says the upgraded kit is expected to deliver approximately 2× improvement in time-on-wing.
The summary is written by an AI model reading the filing.
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