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GE Aerospace Beats Q4, Raises 2026 Outlook as Orders Surge and Backlog Nears $190 Billion

Aftermarket parts and services are powering profit growth that the market is assessing against a rich valuation.

Overview

  • Adjusted EPS was $1.57 on revenue of about $11.9 billion, topping estimates of $1.43 and roughly $11.2 billion, with operating cash flow of $2.1 billion and free cash flow of $1.76 billion.
  • Management guided 2026 adjusted EPS to $7.10–$7.40 and free cash flow to $8.0–$8.4 billion, calling for low‑double‑digit revenue growth and mid‑teens expansion in the commercial engines and services unit.
  • Fourth‑quarter orders jumped 74% to $27.0 billion and the company cited a backlog of roughly $190 billion, with commercial orders up 76% and defense orders up 61%.
  • GE reported record 2025 LEAP deliveries of 1,802 engines, up 28%, and expects LEAP shipments to rise about 15% in 2026; CEO Larry Culp said 777X delays have not affected near‑term GE9X deliveries.
  • Shares were little changed after an early pop as investors weighed the beat and bullish guidance against elevated valuation levels, with the stock trading around the mid‑40s on forward earnings.