GE Aerospace Raises Outlook Despite Aerospace Supply Chain Delays

: GE Aerospace raises its 2026 forecast after strong quarterly results, though aerospace supply chain problems continue to delay production

GE Aerospace expects to earn more this year after a strong third quarter. Orders rose sharply, and sales increased across its commercial engines and services business. But the company still has trouble getting the materials it needs. These aerospace supply chain problems are slowing production and making it harder to complete orders on time.

Orders and Sales Pick Up

Orders at GE Aerospace saw a remarkable 49% surge in the third quarter. For the three months ending September 30, revenue hit $14.12 billion, marking a solid 16% rise compared to the same time last year.

Profit from ongoing operations climbed to $2.41 billion, up from $2.17 billion during the same period last year. Adjusted earnings came in at $2.25 per share, surpassing analysts' expectations of $2.01. Revenue from commercial engines and services jumped by 21%, while the defense and propulsion technologies sector experienced a sales growth of 6.7%.

The commercial business accounted for much of the growth in orders. Further figures are available in the company's third-quarter results announcement.

Delays Make It Harder to Meet Demand

More orders are welcome, but fulfilling them remains a challenge. GE Aerospace is having difficulty obtaining some of the materials needed to build and service its products. Inflation is also putting pressure on costs.

Chief Financial Officer Rahul Ghai said orders generally take six to nine months to turn into revenue. That period is getting longer, meaning the company must wait more time before some orders show up in its sales figures.

For aircraft engine manufacturers, a delay in receiving one component can affect production schedules. GE Aerospace is changing the layout of certain production lines to help increase output. It is also using artificial intelligence to cut processing times, Chief Executive Larry Culp said.

The company is working to improve production, but it still needs a steadier supply of materials to meet delivery commitments.

Higher Earnings Forecast for 2026

GE Aerospace now expects adjusted earnings of $8 to $8.10 per share for 2026. Its previous estimate was $7.65 to $7.85 per share. The company has also raised its adjusted revenue-growth forecast to 19% to 20%, from growth in the high teens.

It is planning further investment in manufacturing. The proposed acquisition of Consolidated Precision Products is expected to help GE Aerospace increase deliveries and bring new engine technologies into production sooner.

Alongside new engines, aircraft engine maintenance remains part of the company's commercial business. Engines already in service need regular maintenance, repairs and replacement parts, providing work beyond the initial sale. Company updates are available on the GE Aerospace investor relations website.

GE Aerospace has raised its expectations for the year, but it still needs to work through production delays. How quickly materials arrive and orders are completed will matter as the company tries to turn strong demand into sales.

Frequently Asked Questions

1. Why did GE Aerospace raise its 2026 forecast?

The company reported higher quarterly earnings and continued demand for commercial engines and services.

2. What are the aerospace supply chain problems affecting GE Aerospace?

The company is struggling to obtain some materials, which is slowing production and delaying orders.

3. How much did orders increase in the third quarter?

Orders rose 49% compared with the same period last year.

4. How is GE Aerospace trying to increase production?

It is changing production-line layouts and using artificial intelligence to reduce processing times.

5. How does aircraft engine maintenance support the business?

Maintenance, repairs and replacement parts provide ongoing work for engines already in service.