GE Aerospace (NYSE: GE) delivered a strong first-quarter performance, beating expectations on both revenue and adjusted earnings. The company reported revenue of $9.94 billion and adjusted earnings per share of $1.49, exceeding the consensus estimates of $9.04 billion and $1.26, respectively. This robust performance follows a solid prior quarter, driven by improved pricing and higher service contributions. Investor enthusiasm for GE stock—now centered on aviation following its healthcare and energy spin-offs—is reflected in its 6% year-to-date gain, outpacing the S&P 500’s 12% decline. For those seeking steadier returns than individual stocks offer, the High-Quality portfolio, which has delivered over 91% returns since inception, is worth considering.
How Did GE Fare In Q1?
GE posted solid financial results for Q1 2025, with revenue growing 11% year-over-year to $9.94 billion. Our GE Aerospace’s revenue dashboard provides more detail. This growth, along with a 460 basis point year-over-year rise in adjusted operating margin to 23.8%, led to a 60% year-over-year increase in earnings per share, which reached $1.49.
From a segment perspective, commercial engines and services stood out with 14% growth year-over-year, totaling $6.98 billion, while defense and propulsion technologies increased by 1% to $2.32 billion. Looking forward, GE’s momentum is projected to continue, backed by a strong aftermarket business. The company reaffirmed its 2025 guidance, targeting low double-digit revenue growth from $35.1 billion in 2024 and adjusted EPS in the range of $5.10 to $5.45, up from $4.60 last year. Total orders rose 12% year-over-year to $12.3 billion in the quarter, further underscoring this positive trend.
What Does This Mean For GE Stock?
GE stock has been on an upward trend following its Q1 earnings release. Over a four-year span, GE’s stock performance has been volatile compared to the S&P 500, with yearly returns of 10% in 2021, -11% in 2022, 94% in 2023, and 65% in 2024.
The Trefis High Quality Portfolio, featuring 30 selected stocks, offers lower volatility and has significantly outperformed the S&P 500 in the same timeframe. Why? These stocks have delivered higher returns with less risk, as shown in the HQ Portfolio performance metrics.
Given the prevailing macroeconomic uncertainty, including interest rate dynamics and geopolitical tensions, GE might experience performance swings similar to 2021. However, with the stock’s recent climb, it may still offer growth potential.
Currently trading at around $185, GE stock is valued at 36x trailing earnings, slightly above its two-year average P/E of 35x. Given the strong sales and earnings growth driven by margin expansion, a modest increase in valuation multiples appears justified.
While GE stock may still have upside, it’s insightful to explore how GE Aerospace’s Peers compare on critical performance indicators. For broader benchmarking, check out Peer Comparisons.
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