Corporate Participants
- Larry Culp – Chairman & Chief Executive Officer
- Rahul Ghai – Chief Financial Officer
- Steve Winoker – Vice President, Investor Relations
Prepared Remarks
Steve Winoker: Good morning, and welcome to GE Aerospace fourth quarter 2025 earnings call. Joining me are Larry Culp, our Chairman and CEO, and Rahul Ghai, our CFO.
Larry Culp: GE Aerospace delivered an outstanding fourth quarter with revenue of $9.9 billion and EPS of $1.32. Our performance reflects strong execution across commercial and defense segments.
Commercial engine shop visits increased 15% year-over-year, driven by the recovery in global air travel. LEAP engine deliveries remained strong at 420 units, and we continue to see robust demand. Our services backlog reached a record $140 billion.
Defense & Propulsion Technologies grew double digits, driven by strong demand for combat engines and military helicopter programs. We secured several significant contract wins that extend our visibility.
Rahul Ghai: Revenue grew 14% organically with operating profit margins expanding 200 basis points to 19.5%. Free cash flow was $1.8 billion, exceeding our expectations. We returned $1.2 billion to shareholders through dividends and buybacks.
Q&A Session
Analyst: Can you discuss supply chain and production targets for 2026?
Larry Culp: The supply chain remains challenging but is improving. We have been working closely with suppliers to increase capacity. We are confident in meeting customer demand and expect continued improvement throughout 2026.
Analyst: What is your outlook for the commercial aftermarket?
Larry Culp: The commercial aftermarket remains very strong. Flight hours continue to recover globally, and our installed base is growing. We expect shop visits to grow double digits again in 2026, supporting strong services revenue.
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