GE Aerospace increased its annual profit predictions because the company delivered more jet engines and improved supply chain operations. The company has started to solve production limitations according to CEO Larry Culp.
The company delivered 45% more engines during the second quarter compared to the previous year with LEAP engines used in Boeing and Airbus narrowbody jets showing a 38% increase. The company delivered adjusted earnings per share at $1.66 which exceeded market predictions of $1.43. The company now predicts full-year EPS between $5.60 and $5.80 instead of its previous forecast of $5.10 to $5.45.
The company increased its 2028 operating profit target to $11.5 billion from $10 billion because of rising air travel and aircraft maintenance service requirements.
The company passes some tariff expenses to customers while seeking relief under the Civil Aircraft Agreement according to Culp despite facing $500 million in tariff costs this year. He pointed to the UK-U.S. trade deal as a model.
The suppliers of GE Aerospace boosted their production levels by 10% since the last quarter while delivering more than 90% of their promised parts. Culp stated that the company needs to sustain its current pace until the end of the year because the target continues to shift.
