GE Aerospace (NYSE: $GE) reported its first-quarter fiscal 2025 earnings on April 22. The company posted adjusted earnings per share of $1.49. This beats the analysts’ estimate of $1.27 by 17.3%. Total revenue came in at $9.00 billion. This missed Wall Street’s forecast of $9.77 billion, representing a 7.9% shortfall.
Shares of GE traded at $187.47 as of 1:01 PM EDT, up 5.11% for the session. The stock has gained 12.61% year-to-date, outperforming the S&P 500’s 9.98% decline. GE’s one-year return stands at 25.66%. In comparison, the S&P 500 gained only 5.67%. Over the last five years, GE stock rose 498.56% while the index increased 89.15%.
GE Aerospace reaffirmed its full-year adjusted EPS guidance of $5.10 to $5.45. It also maintained its revenue growth outlook of 11.8% for the next 12 months. CEO Larry Culp noted that the firm would continue to manage costs and optimize operations. The company is also taking steps to reduce the effect of tariffs. These include pricing actions and leveraging existing trade programs.
GE Aerospace’s operating margin improved to 23.8%. This rose from 17.3% in the same quarter a year ago. Free cash flow margin, however, decreased to 16% from 18.6%. The company’s trailing twelve-month revenue stands at $38.7 billion. Net income available to common shareholders totals $6.65 billion.
GE Aerospace holds $14.2 billion in cash. Its debt-to-equity ratio is 104.16%. Levered free cash flow over the trailing year is $4.42 billion. Profit margin for the same period is 16.94%. Return on equity reached 27.64%, while return on assets was 3.27%.
Despite modest long-term revenue growth, short-term trends show momentum. GE Aerospace recorded just a 4% compounded annual revenue growth rate over the past five years. But over the last two years, revenue increased by 18.7%. This marks an acceleration in demand.
Earnings per share rose at a slow 2.8% annual rate over five years. Yet in the past two years, EPS grew by 51.5% annually. This suggests improved profitability and stronger operations. The Q1 2025 EPS of $1.49 grew from $0.93 last year. Analysts now expect full-year EPS of $5.16, an 8.8% increase.
Wall Street remains positive on the stock. All 10 analysts tracked by Visible Alpha rate GE a “buy.” Their average price target is $224.90. That is about 26% above current levels. The company has also announced a $1 billion investment in U.S. factories and supply chain for 2025. This amount is nearly double what it spent in 2024.
GE Aerospace’s commercial services backlog remains above $140 billion. Management believes this supports its earnings outlook. While revenue fell short this quarter, profitability and long-term demand remain strong.
GE Aerospace now operates as an independent entity. The separation from GE Vernova (GEV) happened more than a year ago. The company’s 1-year standalone performance has attracted investor attention.
GE offers a forward dividend of $1.44 per share with a yield of 0.81%. The ex-dividend date was March 10, 2025. Its current market capitalization stands at $190.2 billion. Analysts project a one-year price target of $219.97.
GE Aerospace Technical Analysis
GE Aerospace stock has followed a bullish trend since April 2024. Price has respected an ascending trendline over this period. If the stock retraces in the near term, the trendline could act as support.
The next upside target sits at the previous high and resistance zone near $214. This level may attract selling pressure or mark a breakout point if the bullish structure continues.
In summary, GE Aerospace posted a mixed Q1 with strong earnings but weaker sales. Cost management and backlog strength support its 2025 outlook. The stock remains one of the top-performing names in the industrials sector.
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