GE Aerospace disclosed a $121 million reduction in its tax benefit for the year, a direct consequence of Singapore’s implementation of the 15 % global minimum corporate tax rate.
The reduction reflects the company’s obligation to pay a higher effective tax rate on Singapore‑based earnings under the new OECD‑backed framework. In 2023 and 2024 GE Aerospace reported tax benefits of $136 million, and its effective tax rate averaged 7.7 % from 2020 to 2024, peaking at 14.9 % in September 2025. The new rule forces the company to align its Singapore tax expense with the 15 % minimum, tightening the tax benefit by $121 million relative to the prior year.
The higher tax expense compresses net income and free‑cash‑flow generation. For the full year 2025, GE Aerospace reported revenue of $45.9 billion, up 18 % from $38.1 billion, and a profit of $10.0 billion, up 31 % from $7.6 billion. Adjusted earnings per share rose to $1.57 from $1.32, a beat of $0.25 or 19 % over consensus. The tax adjustment reduced the effective tax rate to 12.3 % from 13.5 % in 2024, contributing to a 0.2‑percentage‑point decline in the operating margin, which fell to 21.8 % from 22.0 %.
CEO Larry Culp said the company remains confident in its growth trajectory, noting that the strong fourth‑quarter performance and a backlog of roughly $190 billion provide a solid foundation. He added that the company is focused on cost discipline and strategic investments to offset the tax headwind. Management reiterated its 2026 guidance, maintaining a revenue outlook of $46.5 billion to $47.0 billion and an adjusted EPS range of $1.70 to $1.75, signaling continued confidence despite the tax adjustment.
Investors acknowledged the tax headwind but were buoyed by the robust earnings beat and the company’s strategic partnership with Delta Air Lines, which will supply GEnx engines and services for the Boeing 787‑10 fleet, adding a long‑term revenue stream. The market reaction reflected a balanced view: the tax impact was seen as a short‑term drag, while the strong operational performance and forward guidance reinforced confidence in GE Aerospace’s long‑term prospects.
The tax benefit reduction underscores the broader impact of the global minimum tax on multinational operators, but GE Aerospace’s resilient earnings, sizable backlog, and strategic deals position it to navigate the new tax landscape while sustaining growth momentum.
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