GE Aerospace raises 2026 profit outlook despite oil price risks
Despite the challenges posed by escalating oil prices and a weakening economy, GE Aerospace anticipates that its 2026 performance will align with the higher end of its forecast. For the first quarter ending March 31, the adjusted earnings per share reached $1.86, surpassing the expected $1.60, while revenue surged by 25% to $12.4 billion. Orders soared by 87% to $23 billion, and free cash flow rose by 14% to $1.66 billion. CEO H. Lawrence Culp, Jr. reaffirmed the annual guidance, bolstered by a 34% revenue growth in the Commercial Engines & Services division. Significant contracts included over 300 LEAP-1A engines with American Airlines. Following a near doubling of U.S. jet fuel prices since late February, airlines have begun increasing fees and reducing routes, which may affect engine maintenance demand. GE Aerospace's stock climbed by 2.4%.
Key facts
- GE Aerospace raised its 2026 profit outlook but warned oil prices could weigh on airlines
- Q1 adjusted EPS was $1.86, beating analyst estimates of $1.60
- Total revenue rose 25% to $12.4 billion
- Orders jumped 87% year over year to $23 billion
- Free cash flow came in at $1.66 billion, up 14%
- Commercial Engines & Services segment revenue rose 34% to $8.9 billion
- Jet fuel prices in the U.S. have almost doubled since the outbreak of the U.S.-Israeli war with Iran
- Revenue from maintenance agreements and aftermarket services accounts for most of GE Aerospace's earnings
Entities
Artists
- H. Lawrence Culp, Jr.
Institutions
- GE Aerospace
- Bloomberg
- Getty Images
- American Airlines
- United Airlines
- Delta Air Lines
- JetBlue
- Qantas
- Thai Airways
- Boeing
- Airbus
- Reuters
Locations
- U.S.
- Iran
- Strait of Hormuz
Sources
- Quartz —