Overview
- GE Aerospace reported stronger-than-expected Q2 results on Thursday, with orders up 17%, revenue up 24%, EPS up 22% and free cash flow up 43%, and management raised full-year 2026 guidance for revenue, operating profit and cash flow.
- Commercial services were the main growth engine, with services orders rising sharply and a services backlog of about $170 billion that gives the company multi-year revenue visibility.
- Management credited FLIGHT DECK and targeted AI work for steep reductions in production and processing times, including a 60% cut in some component lead times and nearly 90% faster processing on selected parts.
- Operational risks remain as spare-parts delinquencies rose roughly 20% sequentially and GE9X ramp-related costs are expected to pressure margins before improvements toward 2028.
- GE/CFM is cooperating with Ryanair on the Flight 1879 investigation, and investors tempered enthusiasm after the beat with shares falling about 4% as market expectations and order growth moderation were weighed.