📈 GE Aerospace: growth in times of global uncertainty
GE Aerospace $GE is off to a strong start in 2025 at a time when most aerospace and defense companies are grappling with how to maintain margins under pressure from geopolitics, inflation and tariff barriers.

For 1Q 2025, the company reported:
Adjusted earnings of $1.49 per share (22 cents above expectations)
Revenue grew 11% year-over-year to $9.94 billion
New orders reached $12.3 billion, up 12%
Adjusted free cash flow is guided to USD 6.3-6.8 billion for the full year

🛩️ Commercial engine segment and aftermarket services such as maintenance, repair and technical support for products (+14% of sales) remains the main backbone of revenue, with more than $170 billion in order backlog. The company benefits from the fact that more than 70 % of revenue from the commercial business comes from services, which are high margin and stable.

💼 CEO Larry Culp personally deals with the administration Donald Trump on easing tariffs. Trump's tariffs mean that the GE additional costs of more than $500 million per year. However, given the current global mood, management remains realistic and instead of relying on politics, is actively optimizing costs, raising prices, taking advantage of foreign trade zones and tariff concessions.

📉 Customs will particularly affect the supply of spare parts to China and, in some cases, slow down after-sales service, which is a GE a vital part of its business, as this segment is at the heart of its success.
Even so, Culp believes the company will meet the entire outlook without any changes to the aircraft maker's delivery schedule.

🔎GE Aerospace is a stable defensive company with growth potential, built on long-term contracts, strong technology and a dominant market position in engines for narrow-body aircraft.

Tariff uncertainty increases risk and can negatively impact cash flow in the short term, but the company has been very disciplined and conservative.

The company also announced an investment of USD 1 billion in U.S. manufacturing capacity and plans to hire 5 000 people, which is not only economically important but also strategically wise at a time when USA prefers to manufacture domestically.

📌 Despite all the pressures, the company confirms that its business model works even in unpredictable times. And in an environment where a lot of industry players are cutting back on outlooks, that's a very important signal.

What is your opinion of GE Aerospace?