GE Aerospace (GE.US) rides the aviation recovery "tailwind" and has raised its full-year performance expectations for two consecutive quarters.

Jet engine manufacturer GE Aerospace (GE.US) released its third-quarter financial report before the market opened on October 21, Eastern Time. The company has benefited from strong demand for air travel and has raised its full-year performance expectations for the second consecutive quarter. The report showed that GE Aerospace's adjusted revenue for the third quarter increased by 26% to $11.3 billion, exceeding the market's average expectations. Adjusted earnings per share were $1.66, also surpassing market expectations. As of Monday's close, GE Aerospace's stock price has risen by over 80% this year, far exceeding the 15% increase in the S&P 500 index during the same period. In a statement on Tuesday, the company announced that adjusted earnings per share will be raised from the previous range of $5.60 to $5.80 to $6 to $6.20, with the market average expectation at $5.92. GE Aerospace also raised several other performance expectations: the adjusted revenue growth rate was raised from "the midpoint of the 14%-16% range" to "17%-20%". Operating profit and free cash flow expectations were also raised in sync. GE Aerospace stated that this year's operating profit would be raised from the previous expectation of up to $8.5 billion to $8.65 billion to $8.85 billion, while free cash flow expectations were raised from $6.5 billion to $6.9 billion to $7.1 billion to $7.3 billion. This performance highlights the continued strong growth momentum of the company under the leadership of CEO Larry Culp since the completion of the three-way split of the conglomerate last year. Despite tariff pressures and supply chain disruptions hindering other aerospace manufacturers, GE Aerospace's revenue and profit in all business segments have grown, driving a significant increase in its stock price. To meet the increasing aircraft production volumes of Boeing Company (BA.US) and Airbus SE, GE Aerospace needs to deliver more new engines, which brings increased costs with the rise in engine deliveries. Currently, the company's maintenance business is helping to offset these cost pressures. Typically, sales of new engines may be in a loss-making state, and the company will gradually achieve profitability through future maintenance agreements in the coming years. GE Aerospace is one of the major beneficiaries of the global aviation recovery, with increasing market demand for maintenance services and new engines. Recently, the company has achieved great success in large aircraft orders, including the largest wide-body aircraft engine order in GE Aerospace's history with Qatar Airways - delivering over 400 engines to the latter. Culp has also been advocating for reducing trade barriers in the global aerospace industry. Earlier this year, he had a direct conversation with US President Donald Trump, explaining how free trade benefits the aerospace industry and creates a trade surplus for the United States.