(Reuters) -GE Aerospace raised its 2025 profit forecast on Tuesday, projecting a strong finish to the year on robust demand for aftermarket maintenance services due to a shortage of new jets.
The jet-engine maker also lifted its growth forecast for LEAP engine deliveries to more than 20% in 2025. Shares of the company were up nearly 3% in premarket trading.
Jet deliveries from Boeing and Airbus have lagged demand from airlines, forcing carriers to spend more on the maintenance of older jets.
That has benefited GE Aerospace, which sells engines at relatively low upfront prices and earns most of its profit from high-margin, long-term contracts for parts and maintenance over an engine’s life cycle.
The company expects annual profit per share in the range of $6.00 to $6.20, compared with its prior expectations of $5.60 to $5.80.
Third-quarter operating profit at its commercial engines and services unit rose 35% to $2.44 billion, while revenue climbed 27% to $8.88 billion from a year ago. The segment derives more than 70% of its sales from parts and services.
With aerospace supply chains improving, engine makers are expected to ramp up deliveries of new engines. GE holds a strong position in the jet engine market through CFM International, its long-standing joint venture with France’s Safran SA.
Earlier this month, Safran CEO Olivier Andries said the company was “on a good path” to catch up on delayed engine deliveries to Airbus by the end of October.
GE customer Boeing also recently received regulatory approval to increase production of its bestseller 737 MAX jets, which are exclusively powered by CFM’s LEAP-1B engines.
GE Aerospace’s adjusted profit per share for the quarter through September jumped 44% to $1.66, beating expectations of $1.45, according to data compiled by LSEG. Its adjusted revenue rose 26% to $11.31 billion.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Arun Koyyur)
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