GE Aerospace forecasts higher 2026 profit on maintenance boom
GE Aerospace has forecast 2026 profit above market expectations, driven by strong demand for high-margin aftermarket parts and maintenance services as airlines continue to face aircraft supply shortages.
In a statement released Thursday, the company said airlines are expected to prioritize maintenance spending because deliveries of new aircraft still lag behind rising global travel demand. This supply-demand imbalance has strengthened business for engine manufacturers, which generate most of their profits from long-term servicing and parts contracts, News.Az reports, citing Reuters.
GE Aerospace expects adjusted earnings per share in 2026 to range between $7.10 and $7.40, slightly above analysts’ average estimate of $7.11, according to LSEG data. The company also forecast adjusted revenue growth in the low double-digit percentage range for the year.
CEO Larry Culp said GE Aerospace enters 2026 with strong momentum and is well positioned to deliver increased value to customers amid continued industry recovery.
The Ohio-based manufacturer holds a dominant position in narrowbody aircraft engines and maintains a strong share of the widebody market. More than 70% of its commercial engine revenue comes from parts and services, underlining the importance of aftermarket operations to its profitability. The company expects revenue in its commercial engines and services division to rise by a mid-teens percentage.
Stabilizing air traffic has put more aircraft back in service, further boosting maintenance demand. However, persistent engine shortages and reliability issues have increased airline operating costs and contributed to pricing tensions between carriers and suppliers.
Meanwhile, CFM International — GE Aerospace’s joint venture with France’s Safran — has renewed agreements with global airlines to ensure competitive conditions in engine maintenance and repair markets.
For the fourth quarter, GE Aerospace reported adjusted earnings of $1.57 per share, up from $1.32 a year earlier. Quarterly adjusted revenue rose 20% to $11.87 billion, reflecting continued strength in commercial aviation services.
By Aysel Mammadzada
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