GE Aerospace scored a breakout Thursday after the jet engine and defense manufacturer topped estimates for Q4 results, provided an optimistic outlook and stepped up shareholder returns.
GE Aerospace reported adjusted earnings of $1.32 per share, up 103% from last year, on a 16% revenue increase to $9.9 billion. Those easily beat FactSet forecasts for earnings of $1.04 per share on $9.49 billion in sales.
The earnings gain was the best in six quarters while it was the best revenue increase in years.
Total orders during the quarter jumped 46% to $15.5 billion.
The commercial engines & services (CES) segment had a 50% increase in orders to $12.95 billion, with 19% revenue growth to $7.65 billion. Defense and propulsion technologies (DPT) saw a 22% order increase to $2.84 billion with 4% revenue growth to $2.5 billion.
GE Aerospace guided 2025 earnings to $5.10-$5.45 per share adjusted, with the midpoint just above FactSet estimates for $5.23 per share. The company expects low double-digit revenue growth, while FactSet predicts about 11% sales growth to $38.99 billion.
GE Aerospace guided CES revenue to grow in the mid-teens, driven by a low-double-digit to mid-teen boost in services and equipment growth in the high-teens.
DPT revenue growth is seen climbing in the mid- to high-single-digit range.
GE Dividend Hike, Buyback
GE Aerospace said it plans to hike its dividend by 30%. It also announced a $7 billion share buyback program.
GE Aerospace Stock Set To Break Out
GE stock rallied almost 10% early Thursday to clear a 194.80 buy point. Shares pared gains to 6.6% to close at 200.80.
The move pushed GE Aerospace near the top of the buy zone, which extends to 204.54.
Shares rebounded from the 200-day line on Jan. 13. On Jan. 14, GE Aerospace pushed above its 50-day moving average and broke a downtrend, offering an early entry.
GE stock has advanced more than 20% in 2025.
GE Vernova, which got General Electric's energy assets, rallied Wednesday to fresh highs despite a revenue miss.
Boeing earnings are due on Jan. 28.
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