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GE Aerospace forecasts 2025 revenue above quotes on robust aftermarket need

GE Aerospace on Thursday forecast earnings for the existing year above quotes, as consistent shortage of new aircraft forces airline companies to fly older jets, developing strong demand for its highmargin parts and services.

The company also revealed strategies to increase its share buybacks to $7 billion in 2025 and dividend by 30%.

Production difficulties at Boeing and Airplane have led to longer wait times for airlines to take delivery of new jets, prompting them to operate older, maintenance-intensive aircraft to fulfill demand for air travel.

That has helped companies such as GE Aerospace, which usually sells its engines to airlines at a discount rate and recuperates the costs through financially rewarding contracts with airline companies for parts and services over the life-span of the product.

Earnings at GE Aerospace's business engines and services section increased 44% to $2.16 billion on profits of $7.65 billion, which was up 19% from a year earlier.

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

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

The business expects 2025 profit in the range of $5.10 per. share to $5.45 per share, compared to experts' average. quotes of $5.23 per share, according to information compiled by. LSEG.

However, GE Aerospace continues to come to grips with supply chain. restrictions, which have led to delays in jet engine shipments. over the past year.

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

GE Aerospace reported an adjusted revenue of $1.32 per share,. compared to 65 cents a year ago.

The business's adjusted profits for the fourth quarter ended. Dec. 31 increased 16% to $9.88 billion.

(source: Reuters)