GE Aerospace increased its full-year 2026 profit forecast on Thursday, citing sustained demand for engine maintenance and spare parts. The company now projects adjusted earnings of $7.65 to $7.85 per share, an increase from its previous estimate of $7.10 to $7.40. Additionally, the company raised its free-cash-flow forecast to a range of $8.9 billion to $9.2 billion.
CEO Larry Culp stated that while airlines have reduced flight schedules due to rising fuel costs, demand for engine overhauls remains high. The company reported a $170 billion backlog in commercial services. Culp noted that a shortage of new aircraft has required carriers to keep older jets in service longer, contributing to the demand for repairs.
For the second quarter, GE Aerospace reported an adjusted profit of $2.02 per share, exceeding the average analyst estimate of $1.86. Despite the raised forecast, the company's shares decreased by 3% during morning trading amid a general market decline. Management indicated that supply chain constraints remain a primary challenge for increasing delivery output through 2027.