Key facts
- GE Aerospace increased its 2026 profit forecast to a range of $7.65 to $7.85 per share.
- The company's services arm is closely tied to aircraft departures, which drive engine wear and maintenance demand.
- Despite higher fuel prices and fewer flight departures, demand for spare parts exceeds supply.
- GE Aerospace expects commercial engine and services revenue to grow by approximately 20% in 2026.
- The company reported a second-quarter adjusted profit of $2.02 per share on $13.35 billion in revenue.
GE Aerospace has raised its 2026 profit forecast, signaling resilience in airline spending on maintenance and parts despite economic headwinds. The company anticipates its services arm will continue to benefit from increased flying, even as global airlines face pressure from higher fuel costs and geopolitical disruptions affecting shipping routes.
Despite a slight easing in jet fuel prices, they remain elevated compared to pre-war levels. However, GE Aerospace's CEO, Larry Culp, previously stated that airlines have not reduced engine maintenance or parts orders. The company's services revenue is closely linked to flight departures, as more flying leads to greater engine wear and subsequent maintenance needs. GE Aerospace has secured much of its planned shop-visit work for 2026, and demand for spare parts continues to outstrip supply.
The jet engine manufacturer now projects an adjusted profit per share between $7.65 and $7.85 for 2026, an increase from its earlier forecast of $7.10 to $7.40. GE Aerospace commands a significant share of the narrowbody jet engine market through its joint venture CFM International with Safran, and also holds a strong position in the widebody market. Parts and services constitute over 70% of its commercial engine revenue.
For the second quarter, GE Aerospace reported an adjusted profit of $2.02 per share, up from $1.66 in the same period last year. Total revenue for the quarter reached $13.35 billion, marking a 21% increase year-over-year. The company also expects its commercial engine and services unit revenue to grow by approximately 20% in 2026, revising its prior outlook of mid-teens percentage points.