GE Aerospace Raises 2026 Outlook on Aftermarket Demand

Key Moments

Aftermarket Momentum Drives Profit Outlook

GE Aerospace forecast annual profit above market expectations on Thursday, citing strong demand for high-margin aftermarket parts and services. The company expects airlines to keep prioritizing maintenance spending as they face ongoing constraints in aircraft supply.

Shares of GE Aerospace were up nearly 4% in premarket trading.

The jet-engine manufacturer said it expects 2026 adjusted earnings per share to come in between $7.10 and $7.40. Analysts had been looking for $7.11 per share, based on data compiled by LSEG. The company also projected that its 2026 adjusted revenue will increase in the low-double-digit percentage range.

“We enter 2026 with solid momentum to build upon these results and are well positioned to create greater value for our customers,” CEO Larry Culp said on Thursday.

GE Aerospace reports revenue growth as orders surge, signaling strength in the aerospace sector and boosting industrials sentiment for traders.$GE $BA $RTX pic.twitter.com/laJynDxseB

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Supply Constraints Support Engine and Services Business

Although aircraft manufacturers have increased deliveries over the past year, demand for new jets continues to surpass available supply as airlines seek to benefit from strong travel demand across multiple regions.

This imbalance has supported business for engine makers, which generate most of their profits from long-term parts and maintenance agreements that typically result in significant costs for airline customers.

GE Aerospace, headquartered in Ohio, holds a leading position in the market for engines used on narrowbody aircraft and maintains a strong presence in the widebody segment as well. More than 70% of its commercial engine revenue comes from parts and services.

The company expects revenue in its commercial engines and services unit to increase by a mid-teens percentage, helped by stabilizing air traffic that is returning more aircraft to active service and driving additional maintenance needs.

Industry Tensions Around Costs and Reliability

At the same time, engine shortages and reliability challenges have lifted operating costs for airlines and intensified friction between carriers and suppliers. Many airlines have been pushing back against rising prices, reflecting broader strains in the sector.

CFM International, a joint venture between GE Aerospace and France’s Safran, renewed an agreement with global airlines to ensure competition in the market for engine maintenance and repairs.

Quarterly Performance Snapshot

GE Aerospace reported higher profit and revenue for the quarter ended December 31.