Company: GE
Filing Date: 2025-04-22
Form Type: 10-Q
Source: 0000040545-25-000062
Chunk: 21

Company: GENERAL ELECTRIC CO
Filing Date: 2025-04-22
Form: 10-Q
Item: Item 7
Chunk 21
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 of engine orders outpacing revenue recognized.

DEFENSE & PROPULSION TECHNOLOGIES. Our results in the first quarter of 2025 reflect domestic and international government defense departments’ focus on modernizing and scaling their forces while continuing flight operations, driving services demand. A key underlying driver of our business is government funding, as most of the revenue in Defense & Systems is derived from funding that flows through the U.S. Department of Defense (DoD) budget, or equivalent international budgets. 

In the first quarter of 2025, we announced an Indefinite Delivery/Indefinite Quantity (IDIQ) contract from the U.S. Air Force valued up to $5 billion to support foreign military sales for F110-GE-129 engines, which power F-15 and F-16 aircraft operated by allied nations worldwide. We also achieved important development and testing milestones on two advanced engines for the U.S. war fighter. We completed initial ground runs for the T901 on a Black Hawk helicopter and we also completed a Detailed Design Review for the XA102 adaptive cycle engine.

Sales in units, except where notedThree months ended March 3120252024Defense engines131 125 

SEGMENT REVENUE AND PROFITThree months ended March 3120252024Defense & Systems (D&S)$1,497 $1,495 Propulsion & Additive Technologies (P&AT)828 817 Total segment revenue$2,324 $2,312 Equipment$1,050 $1,009 Services1,274 1,303 Total segment revenue$2,324 $2,312 Segment profit$296 $256 Segment profit margin12.7 %11.1 %

For the three months ended March 31, 2025, revenue was up 1%, and profit was up 16%, compared to the three months ended March 31, 2024.

D&S revenue was flat primarily due to aircraft systems product growth, increased engine deliveries and price partially offset by lower services volume. P&AT revenue increased primarily due to services volume and price, partially offset by lower internal shipments.

Profit increased primarily due to aircraft systems product growth, customer mix and productivity. This increase was partially offset by incremental investments to support next-generation products and inflation in our supply chain.

RPOMarch 31, 2025December 31, 2024Equipment$11,657 $11,046 Services7,191 6,