In the first half of 2025, GE Aerospace announced significant new engine deals with major customers, including over 400 engines for Qatar Airways and 75+ LEAP engines for ANA Holdings. These agreements underscore robust demand and a positive outlook for the commercial engine portfolio.

The company is actively investing in its manufacturing and overhaul facilities to increase production and strengthen yield, with total engineering investments increasing compared to the prior year. This includes ongoing development of the CFM International RISE program and technologies for sixth-generation aircraft, positioning for future growth.

The Defense & Propulsion Technologies segment secured an Indefinite Delivery/Indefinite Quantity (IDIQ) contract from the U.S. Air Force valued up to $5 billion for F110-GE-129 engines. Additionally, the company completed initial ground runs for the T901 and a Detailed Design Review for the XA102 adaptive cycle engine, showcasing strong program execution.

GE Aerospace is leveraging its proprietary FLIGHT DECK lean operating model to drive cost productivity and improve turnaround times in services businesses. This, coupled with strategic pricing adjustments, is aimed at mitigating the continuing impact of inflationary pressure on operations.

The company successfully completed the tax-free spin-off of GE Vernova in Q2 2024, following the GE HealthCare separation in 2023. These strategic divestitures streamline the business, allowing GE Aerospace to focus entirely on its core aerospace operations and drive focused execution.

Management acknowledges ongoing global material availability and supplier delivery disruptions. In response, they are investing in manufacturing facilities and partnering with suppliers to improve material input and production rates, which has contributed to increased engine deliveries.

The company explicitly states that 'the impact of supply chain constraints and inflation will continue' and they are 'continuing to take action to mitigate the impacts.' This indicates these are ongoing, material risks that could affect production and profitability in the near term.

The estimated total losses for borrower litigation at Bank BPH increased to $2,520 million at June 30, 2025, from $2,461 million at December 31, 2024, driven by foreign exchange movements. Total reserves for environmental remediation and worker exposure claims also increased to $2,018 million, highlighting potential future financial obligations.

The company is currently evaluating the impact of the newly signed One Big Beautiful Bill Act (OBBB) and the OECD's Pillar 2 global minimum tax rules. They state that a 'quantitative estimate of the specific financial effects cannot be reasonably determined at this time,' introducing regulatory uncertainty for future periods.

GE Aerospace's installed base of approximately 49,000 commercial and 29,000 military engines supports its aftermarket services business, representing approximately 70% of total revenue. This extensive installed base provides a significant and recurring revenue stream, solidifying its market position.

Total Remaining Performance Obligation (RPO) increased by $2.8 billion, or 2%, to $174,397 million at June 30, 2025, driven by new engine orders and long-term service agreements. Improved pricing was also cited as a key driver for revenue and profit growth in both segments, indicating strong market demand and pricing power.

The company's continued investment in R&D, including the CFM International RISE program for alternative fuels and technologies for sixth-generation aircraft, positions it to maintain a competitive edge. This commitment to innovation is a strategic differentiator in the highly competitive aerospace industry.

Despite ongoing global material availability issues, GE Aerospace is investing in manufacturing and overhaul facilities to increase production and strengthen yield. This focus has contributed to increased total engine deliveries and LEAP engine deliveries in the first half of 2025.

Restructuring and other cash expenditures decreased to $55 million for H1 2025 from $99 million for H1 2024. Pre-tax separation expenses also declined significantly to $98 million from $334 million, indicating a more streamlined and efficient cost base post-spin-offs.

Inventories, including deferred inventory costs, increased by $1,534 million to $11,297 million at June 30, 2025, from December 31, 2024. Accounts payable also increased by $1,586 million to $9,495 million, reflecting higher material purchases and operational activity.

Total engineering investments, both company and partner-funded, increased compared to the prior year, underscoring a commitment to innovation. This includes specific investments in the CFM International RISE program, which has completed over 350 component and module tests for Open Fan and hybrid electric systems.

The Defense & Propulsion Technologies segment achieved important development and testing milestones on two advanced engines for the U.S. war fighter. This includes initial ground runs for the T901 engine for the Black Hawk helicopter and a Detailed Design Review for the XA102 adaptive cycle engine.

The company explicitly states its commitment to 'investing in developing and maturing technologies that enable a more efficient future of flight.' This long-term strategic focus on innovation is crucial for sustained leadership and addresses evolving industry needs.

The company repurchased 16.6 million shares for $3.5 billion in the first half of 2025, including $2.3 billion via accelerated stock repurchases. This aggressive repurchase activity, under a $15 billion authorization, indicates management's belief in the company's intrinsic value and commitment to shareholder returns.

Total borrowings decreased by $0.4 billion to $18.9 billion at June 30, 2025, from December 31, 2024. This, coupled with credit rating upgrades from Moody's (Baa1 to A3) and S&P (BBB+ to A-), significantly improves the company's funding profile and financial flexibility.

Dividends declared per common share increased to $0.72 for the six months ended June 30, 2025, up from $0.56 in the prior year period. This aligns with the company's financial policy to return a majority of its free cash flow to shareholders, signaling confidence in future cash generation.

GE Aerospace is supporting efforts to revitalize domestic manufacturing by investing $1 billion in U.S. manufacturing this year and hiring 5,000 U.S. workers. This demonstrates a strong commitment to social responsibility and contributes to economic development.

Total reserves related to environmental remediation and worker exposure claims were $2,018 million at June 30, 2025, an increase from $2,003 million at December 31, 2024. The company notes that it is 'reasonably possible that our exposure will exceed amounts accrued,' indicating ongoing financial risk.

The CFM International RISE program, a suite of pioneering technologies including Open Fan and hybrid electric systems, is being developed for compatibility with alternative fuels. This initiative underscores the company's focus on inventing the future of flight with environmental and sustainability considerations.

Demand for commercial air travel grew with departures up nearly 4% in the first six months of 2025. This positive trend directly supports the Commercial Engines & Services segment's strong revenue growth and new engine deals, indicating a favorable market backdrop.

The Defense & Propulsion Technologies segment's results reflect domestic and international government defense departments' focus on modernizing and scaling forces. Government funding, particularly the U.S. Department of Defense budget, is a key underlying driver of this business's continued strength.

The forward-looking statements highlight ongoing risks from macroeconomic conditions such as recession, inflation, and supply chain constraints. Geopolitical risks, including evolving impacts from tariffs and trade tensions, are also noted as factors that can result in additional costs for the company.