GE Aerospace Forecasts Better 2025 Profit On Strong Demand For Parts And Services

GE Aerospace has forecasted a stronger profit this year after its fourth-quarter earnings exceeded Wall Street estimates.

Profit at GE Aerospace's commercial engines and services segment rose 44% to $2.16 billion on revenue of $7.65 billion, a 19% increase from the previous year. I Photo: GE Aerospace

Persistent shortages of new aircraft have driven up demand for the company’s high-margin parts and services, Rajesh Kumar Singh and Shivansh Tiwary reported for Reuters.

The company's shares rose 6.5% in pre-market trading after GE Aerospace also announced plans to increase its share buybacks to $7 billion in 2025 and raise its dividend by 30%.

Production delays at Boeing and Airbus have resulted in longer wait times for new jets, forcing airlines to operate older, maintenance-intensive aircraft to meet the growing demand for air travel.

This situation has benefited companies like GE Aerospace, which typically sells its engines to carriers at a discount, recovering costs through lucrative contracts for parts and services over the lifespan of the engines.

Profit at GE Aerospace's commercial engines and services segment rose 44% to $2.16 billion on revenue of $7.65 billion, a 19% increase from the previous year. The company's commercial engine division generates more than 70% of its revenue from the sale of parts and services.