10-QPeriod: Q2 FY2025

GENERAL ELECTRIC CO Quarterly Report for Q2 Ended Jun 30, 2025

Filed July 21, 2025For Securities:GE

Summary

General Electric Company (GE) reported strong financial performance for the second quarter of 2025, driven by significant revenue growth in its core Aerospace segment. Total revenue increased by 21% year-over-year, reaching $11.023 billion, fueled by robust demand for both equipment and services. The company's net income from continuing operations saw a substantial jump to $2.008 billion, up from $1.320 billion in the prior year's quarter, reflecting improved segment profitability and favorable adjustments. This quarter also saw GE's credit ratings upgraded by both Moody's and S&P, indicating enhanced financial stability and market confidence. The company continues to execute its strategic priorities, including investing in manufacturing capacity and innovation for future flight technologies, while also managing macroeconomic challenges such as supply chain disruptions and inflation. The strong financial results and positive credit outlook provide a solid foundation as GE Aerospace focuses on driving shareholder value and continued operational excellence.

Financial Highlights

44 data points
Beta

Revenue

$11.02B

Net Income

$2.03B

18.4% Net Margin

EPS (Diluted)

$1.89

Total Assets

$125.26B

Cash & Equivalents

$10.86B

Free Cash Flow

$2.25B

Financial Statements
Beta
Revenue$11.02B
R&D Expenses$359.00M
SG&A Expenses$1.02B
Operating Expenses$8.93B
Net Income$2.03B
EPS (Basic)$1.91
EPS (Diluted)$1.89
Shares Outstanding (Basic)1.06B
Shares Outstanding (Diluted)1.07B

Key Highlights

  • 1Total revenue surged by 21% year-over-year to $11.023 billion, driven by strong performance in both equipment and services within the GE Aerospace segment.
  • 2Net income from continuing operations attributable to common shareholders increased significantly to $2.008 billion, up from $1.320 billion in the prior year's quarter.
  • 3Both Moody's and S&P upgraded GE's credit ratings, with Moody's moving to A3 (positive outlook) and S&P to A- (stable outlook), signaling improved financial health.
  • 4The Commercial Engines & Services segment reported a 30% revenue increase and a 33% profit increase year-over-year, demonstrating strong market demand and effective execution.
  • 5GE Aerospace reported substantial free cash flow of $3.547 billion for the first six months of 2025, indicating strong operational cash generation.
  • 6Remaining Performance Obligation (RPO) increased by 2% to $174.397 billion as of June 30, 2025, suggesting a robust future revenue pipeline.
  • 7Share repurchases continued, with $1.617 billion spent on repurchasing shares in the second quarter of 2025 under the authorized $15.0 billion program.

Frequently Asked Questions

GE's revenue growth was primarily driven by a 21% increase in total revenue to $11.023 billion. This was fueled by a significant rise in both equipment revenue, due to increased engine deliveries and improved pricing, and services revenue, attributed to higher spare parts volume, increased shop visit volume and workscopes, and improved pricing. The Commercial Engines & Services segment, in particular, saw a 30% revenue increase.

Profitability showed strong improvement. Net income from continuing operations attributable to common shareholders rose to $2.008 billion, a substantial increase from $1.320 billion in Q2 2024. This improvement was largely due to higher segment profit, favorable adjustments related to past investments (like GE HealthCare), and reduced financial charges. Adjusted net income also increased significantly to $1.8 billion.

The outlook appears positive, supported by strong demand in commercial air travel and defense spending. GE Aerospace continues to invest in manufacturing capacity and advanced technologies, such as the RISE program, to meet future demand and drive innovation. Despite ongoing supply chain disruptions and inflationary pressures, the company is taking proactive measures to mitigate these impacts through cost productivity and pricing adjustments. The increase in Remaining Performance Obligation (RPO) to over $174 billion further supports a strong near- to mid-term revenue outlook.

The credit rating upgrades from Moody's (to A3 with a positive outlook) and S&P (to A- with a stable outlook) are significant positive indicators. They reflect the company's improved financial stability, stronger credit profile, and successful execution of its strategic and financial objectives. These upgrades can lead to a lower cost of borrowing and enhance GE's financial flexibility.