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GE Aerospace forecasts upbeat 2025 revenue on strong need for parts, services

GE Aerospace on Thursday forecast a stronger full-year revenue as need for its high-margin parts and services got a. boost from airline companies flying older jets to avoid a relentless. lack of brand-new airplane.

The company's shares increased 6.5% in trading before the bell. after GE Aerospace likewise announced strategies to increase its share. buybacks to $7 billion in 2025 and dividend by 30%.

Production challenges at Boeing and Airplane. have led to longer wait times for airline companies to take delivery. of brand-new jets, triggering them to run older,. maintenance-intensive aircraft to satisfy demand for air travel.

That has actually assisted companies such as GE Aerospace, which. usually sells its engines to airlines at a discount and. recovers the expenses through profitable contracts with airlines for. parts and services over the life-span of the item.

Revenue at GE Aerospace's commercial engines and services. section rose 44% to $2.16 billion on profits of $7.65 billion,. which was up 19% from a year previously.

The business's commercial engine department gets more than 70%. of its profits from the sale of parts and services.

The aerospace maker holds a dominant position in the. jet engine market through CFM International, its joint venture. with France's Safran SA.

The company anticipates 2025 profit in the series of $5.10 per. share to $5.45 per share, compared with analysts' average. quotes of $5.23 per share, according to information put together by. LSEG.

However, GE Aerospace continues to face supply chain. restrictions, which have resulted in hold-ups in jet engine deliveries. over the previous year.

In October, GE reported that these supply issues were. affecting the shipment of engines for both narrowbody and. widebody jets.

GE Aerospace reported an adjusted profit of $1.32 per share,. beating analysts' typical expectations of $1.04 per share.

The company's adjusted profits for the fourth quarter ended. Dec. 31 increased 16% to $9.88 billion, compared with Wall Street. expectations of $9.51 billion.

(source: Reuters)