GE Aerospace (GE)
Market Price (5/4/2026): $286.6 | Market Cap: $299.8 BilSector: Industrials | Industry: Aerospace & Defense
GE Aerospace (GE)
Market Price (5/4/2026): $286.6Market Cap: $299.8 BilSector: IndustrialsIndustry: Aerospace & Defense
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 22% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 18%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 15%, CFO LTM is 8.9 Bil, FCF LTM is 7.5 Bil Stock buyback supportStock Buyback 3Y Total is 19 Bil Low stock price volatilityVol 12M is 30% Megatrend and thematic driversMegatrends include Advanced Aviation & Space, Advanced Materials, Electrification of Everything, and Hydrogen Economy. Show more. | Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 34x Key risksGE key risks include [1] consistent operational challenges from global supply chain disruptions that have previously impacted its production and revenue forecasts. |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 22% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 18%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 15%, CFO LTM is 8.9 Bil, FCF LTM is 7.5 Bil |
| Stock buyback supportStock Buyback 3Y Total is 19 Bil |
| Low stock price volatilityVol 12M is 30% |
| Megatrend and thematic driversMegatrends include Advanced Aviation & Space, Advanced Materials, Electrification of Everything, and Hydrogen Economy. Show more. |
| Expensive valuation multiplesP/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 34x |
| Key risksGE key risks include [1] consistent operational challenges from global supply chain disruptions that have previously impacted its production and revenue forecasts. |
Qualitative Assessment
AI Analysis | Feedback
1. Q1 2026 Earnings Missed Elevated Investor Expectations Due to Cautious Full-Year Guidance.
Despite exceeding Q1 2026 adjusted earnings per share (EPS) of $1.86 (vs. $1.61 to $1.82 consensus) and adjusted revenue of $11.6 billion (up 29% year-over-year), as well as reporting an 87% surge in orders to a record backlog exceeding $210 billion, GE Aerospace shares declined by approximately 3% in premarket trading on April 22, 2026. This reaction was primarily driven by the company maintaining its full-year 2026 adjusted EPS guidance of $7.10 to $7.40, which was slightly below some analyst expectations, and flagging potential margin contraction due to higher costs.
2. Macroeconomic Headwinds from Elevated Jet Fuel Prices and Slower Flight Growth.
GE Aerospace issued a more cautious outlook for the remainder of 2026, revising its macroeconomic assumptions to expect Brent crude prices to remain elevated through the third quarter and anticipating flat to low-single-digit growth in flight departures, a decrease from earlier mid-single-digit estimates. This is a significant concern as jet fuel prices nearly doubled from $2.50 to $4.88 per gallon in late February following geopolitical tensions, placing pressure on airline customers and potentially impacting demand for GE Aerospace's services.
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Stock Movement Drivers
Fundamental Drivers
The -6.5% change in GE stock from 1/31/2026 to 5/3/2026 was primarily driven by a -6.2% change in the company's P/E Multiple.| (LTM values as of) | 1312026 | 5032026 | Change |
|---|---|---|---|
| Stock Price ($) | 306.34 | 286.51 | -6.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 45,854 | 48,312 | 5.4% |
| Net Income Margin (%) | 19.0% | 17.9% | -5.9% |
| P/E Multiple | 37.0 | 34.7 | -6.2% |
| Shares Outstanding (Mil) | 1,052 | 1,046 | 0.6% |
| Cumulative Contribution | -6.5% |
Market Drivers
1/31/2026 to 5/3/2026| Return | Correlation | |
|---|---|---|
| GE | -6.5% | |
| Market (SPY) | 3.6% | 61.0% |
| Sector (XLI) | 4.8% | 80.4% |
Fundamental Drivers
The -7.0% change in GE stock from 10/31/2025 to 5/3/2026 was primarily driven by a -14.1% change in the company's P/E Multiple.| (LTM values as of) | 10312025 | 5032026 | Change |
|---|---|---|---|
| Stock Price ($) | 308.15 | 286.51 | -7.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 43,948 | 48,312 | 9.9% |
| Net Income Margin (%) | 18.3% | 17.9% | -2.6% |
| P/E Multiple | 40.4 | 34.7 | -14.1% |
| Shares Outstanding (Mil) | 1,058 | 1,046 | 1.1% |
| Cumulative Contribution | -7.0% |
Market Drivers
10/31/2025 to 5/3/2026| Return | Correlation | |
|---|---|---|
| GE | -7.0% | |
| Market (SPY) | 5.5% | 53.3% |
| Sector (XLI) | 12.2% | 71.9% |
Fundamental Drivers
The 42.9% change in GE stock from 4/30/2025 to 5/3/2026 was primarily driven by a 21.8% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 4302025 | 5032026 | Change |
|---|---|---|---|
| Stock Price ($) | 200.48 | 286.51 | 42.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 39,680 | 48,312 | 21.8% |
| Net Income Margin (%) | 17.6% | 17.9% | 1.3% |
| P/E Multiple | 30.7 | 34.7 | 13.2% |
| Shares Outstanding (Mil) | 1,070 | 1,046 | 2.3% |
| Cumulative Contribution | 42.9% |
Market Drivers
4/30/2025 to 5/3/2026| Return | Correlation | |
|---|---|---|
| GE | 42.9% | |
| Market (SPY) | 30.4% | 48.4% |
| Sector (XLI) | 33.6% | 64.8% |
Fundamental Drivers
The 268.5% change in GE stock from 4/30/2023 to 5/3/2026 was primarily driven by a 268.2% change in the company's P/E Multiple.| (LTM values as of) | 4302023 | 5032026 | Change |
|---|---|---|---|
| Stock Price ($) | 77.75 | 286.51 | 268.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 30,950 | 48,312 | 56.1% |
| Net Income Margin (%) | 29.0% | 17.9% | -38.4% |
| P/E Multiple | 9.4 | 34.7 | 268.2% |
| Shares Outstanding (Mil) | 1,089 | 1,046 | 4.1% |
| Cumulative Contribution | 268.5% |
Market Drivers
4/30/2023 to 5/3/2026| Return | Correlation | |
|---|---|---|
| GE | 268.5% | |
| Market (SPY) | 78.7% | 58.3% |
| Sector (XLI) | 80.9% | 67.1% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| GE Return | 10% | -11% | 94% | 65% | 86% | -6% | 447% |
| Peers Return | 10% | 21% | 1% | 6% | 21% | 4% | 79% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 5% | 92% |
Monthly Win Rates [3] | |||||||
| GE Win Rate | 42% | 50% | 83% | 75% | 83% | 50% | |
| Peers Win Rate | 53% | 58% | 42% | 50% | 52% | 50% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| GE Max Drawdown | -3% | -35% | 0% | -3% | 0% | -11% | |
| Peers Max Drawdown | -9% | -14% | -18% | -14% | -13% | -4% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: RTX, HON, BA, LMT, NOC. See GE Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 5/1/2026 (YTD)
How Low Can It Go
| Event | GE | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -20.6% | -18.8% |
| % Gain to Breakeven | 26.0% | 23.1% |
| Time to Breakeven | 34 days | 79 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -36.4% | -24.5% |
| % Gain to Breakeven | 57.2% | 32.4% |
| Time to Breakeven | 181 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -51.5% | -33.7% |
| % Gain to Breakeven | 106.2% | 50.9% |
| Time to Breakeven | 337 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -46.2% | -19.2% |
| % Gain to Breakeven | 86.0% | 23.7% |
| Time to Breakeven | 387 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -11.2% | -12.2% |
| % Gain to Breakeven | 12.6% | 13.9% |
| Time to Breakeven | 41 days | 62 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -22.1% | -17.9% |
| % Gain to Breakeven | 28.4% | 21.8% |
| Time to Breakeven | 98 days | 123 days |
In The Past
GE Aerospace's stock fell -20.6% during the 2025 US Tariff Shock. Such a loss loss requires a 26.0% gain to breakeven.
Preserve Wealth
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Asset Allocation
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| Event | GE | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -20.6% | -18.8% |
| % Gain to Breakeven | 26.0% | 23.1% |
| Time to Breakeven | 34 days | 79 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -36.4% | -24.5% |
| % Gain to Breakeven | 57.2% | 32.4% |
| Time to Breakeven | 181 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -51.5% | -33.7% |
| % Gain to Breakeven | 106.2% | 50.9% |
| Time to Breakeven | 337 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -46.2% | -19.2% |
| % Gain to Breakeven | 86.0% | 23.7% |
| Time to Breakeven | 387 days | 105 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -22.1% | -17.9% |
| % Gain to Breakeven | 28.4% | 21.8% |
| Time to Breakeven | 98 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -27.6% | -15.4% |
| % Gain to Breakeven | 38.2% | 18.2% |
| Time to Breakeven | 203 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -80.8% | -53.4% |
| % Gain to Breakeven | 419.7% | 114.4% |
| Time to Breakeven | 2409 days | 1085 days |
In The Past
GE Aerospace's stock fell -20.6% during the 2025 US Tariff Shock. Such a loss loss requires a 26.0% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About GE Aerospace (GE)
AI Analysis | Feedback
Here are a few analogies to describe GE Aerospace:
- Intel for airplane engines
- NVIDIA for aerospace propulsion
- Cummins for aircraft
AI Analysis | Feedback
- Power Generation Turbines: Offers gas and steam turbines for various power generation applications.
- Power Plant Balance of Plant: Provides comprehensive solutions for power plant infrastructure and upgrades.
- Power Generation Software: Develops software for data-leveraging and optimization in power generation.
- Wind Energy Systems: Delivers onshore and offshore wind turbines, blades, and associated digital services.
- Grid Infrastructure Solutions: Supplies solutions for electricity transmission, distribution, and grid management.
- Hydro and Energy Storage: Offers solutions for hydroelectric power, energy storage, and hybrid renewable systems.
- Aircraft Engines & Systems: Designs and produces commercial and military aircraft engines, components, and systems.
- Aviation Aftermarket Services: Provides maintenance, repair, and overhaul services for aircraft engines and systems.
- Medical Imaging & Diagnostics: Offers technologies for medical imaging, patient monitoring, and diagnostic solutions.
- Digital Health Solutions: Develops digital tools for healthcare, patient monitoring, and drug discovery.
- Financial Services: Provides various financial solutions to its customers.
- Insurance Management: Manages run-off life and health insurance and reinsurance operations.
AI Analysis | Feedback
Major Customers of GE Aerospace (GE)
GE Aerospace (symbol: GE) primarily sells its products and services to other companies and government entities. Its major customers fall into the following categories:
- Commercial Aircraft Manufacturers: These companies purchase engines and components for integration into their aircraft, which are then sold to airlines. Key customers include:
- Boeing (BA)
- Airbus (EADSY)
- Embraer (ERJ)
- Commercial Airlines: While airlines purchase aircraft from manufacturers, they are direct and significant customers of GE Aerospace for aftermarket services, including maintenance, repair, overhaul (MRO), and spare parts for their fleets powered by GE engines. Examples of major airline customers include:
- Delta Air Lines (DAL)
- American Airlines Group (AAL)
- United Airlines Holdings (UAL)
- Southwest Airlines (LUV)
- Military Organizations / Governments: GE Aerospace supplies engines and and components for military aircraft directly to governments and defense departments worldwide. While these are not public companies with stock symbols, they represent a significant customer base for GE's defense offerings.
AI Analysis | Feedback
```html- Safran S. A. (SAF.PA)
- Howmet Aerospace Inc. (HWM)
- Parker-Hannifin Corporation (PH)
- Honeywell International Inc. (HON)
- Raytheon Technologies (RTX)
- Rheinmetall AG (RHM.DE)
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H. Lawrence Culp, Jr. Chairman and Chief Executive OfficerH. Lawrence Culp, Jr. is the Chairman and Chief Executive Officer of GE Aerospace. He joined the GE Board of Directors in April 2018 and was appointed CEO of GE in October 2018. He assumed additional duties as CEO of GE Aerospace in June 2022 and became Chairman & CEO when it launched as a public company in April 2024. Culp led GE's multi-year financial and operational transformation, during which the company strengthened its balance sheet and reduced debt by over $100 billion. Prior to joining GE, he spent 25 years at Danaher Corporation, serving as President and CEO from 2001 to 2014, where he oversaw a fivefold increase in both revenues and market capitalization. He also played a role in the transformation of GE's portfolio, including the sale of GE Capital Aviation Services (GECAS) and other business units, and the spin-off and subsequent merger of GE Transportation with Wabtec.
Rahul Ghai Senior Vice President and Chief Financial OfficerRahul Ghai is the Senior Vice President and Chief Financial Officer of GE Aerospace. He joined GE Aerospace in August 2022 and also served as CFO of GE from September 2023 through the spin of GE Vernova in April 2024. Before joining GE Aerospace, Ghai was CFO of Otis Elevators starting in July 2019, where he was instrumental in assisting Otis's spin-off from United Technologies. Earlier, he served as Senior Vice President and CFO of Harris Corporation for four years, during which the company's stock price tripled, and he focused on divesting non-strategic assets and investing in technology. His career also includes executive-level finance roles at Aetna Insurance, Carrier Corporation, and UTC Fire and Security, and he was involved in several M&A transactions.
Mohamed Ali President and CEO, Commercial Engines & ServicesMohamed Ali is the President and CEO of Commercial Engines & Services for GE Aerospace. In this role, he leads the company's approximately $33 billion Commercial Engines & Services business and the teams responsible for its industry-leading portfolio of engines and services.
Amy Gowder President and CEO, Defense and SystemsAmy Gowder is the President and CEO of Defense and Systems for GE Aerospace. She leads an operation focused on developing and manufacturing engines and systems for military air combat, trainer, tanker, helicopter, and marine applications, serving over 300 U.S. and international military customers. She possesses more than 20 years of leadership experience within the aerospace and technology industry.
Christian Meisner Chief Human Resources OfficerChristian Meisner is the Chief Human Resources Officer (CHRO) for GE Aerospace, a position he assumed in October 2023. He is responsible for leading the global HR organization, encompassing Talent Management, Leadership Development and Learning, Total Rewards, and Labor and Employee Relations.
AI Analysis | Feedback
The key risks to GE Aerospace's business operations are primarily centered around external market dynamics and operational challenges within the aviation industry.
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Supply Chain Disruptions
GE Aerospace faces ongoing and significant challenges stemming from disruptions in its global supply chain. These issues include persistent bottlenecks in the availability of raw materials (such as high-end castings, forgings, and specific materials like yttrium), as well as problems with supplier delivery performance and labor shortages. These disruptions directly impact the company's ability to meet delivery targets for engines, including the LEAP and GE9X, leading to potential delays in aircraft deliveries for its customers and increased operational costs. The International Air Transport Association (IATA) and consulting firm Oliver Wyman projected that supply chain issues could cost global airlines over $11 billion in 2025 due to delays in aircraft and parts production.
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Reliance on Airframer Production and Industry Cyclicality
GE Aerospace's growth and financial performance are highly dependent on the production rates and overall health of major airframe manufacturers like Boeing and Airbus. Production and quality control issues at these primary customers can directly constrain GE Aerospace's ability to deliver its engines, irrespective of its own production capabilities. Furthermore, the aerospace industry is inherently cyclical, making GE Aerospace vulnerable to broader macroeconomic and geopolitical factors. Economic downturns, recessions, inflation, and global geopolitical uncertainties (such as trade tensions or conflicts) can adversely affect demand for commercial air travel and defense budgets, thereby impacting the demand for GE Aerospace's products and services, as well as its revenue and profitability.
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Intense Competition and Margin Pressure
The aerospace engine market is characterized by intense competition from major players such as Pratt & Whitney (a division of RTX Corporation) and Rolls-Royce Holdings plc. GE Aerospace must continuously innovate and enhance its offerings to maintain its competitive position, as any technological or service setback could lead to significant market share loss. Additionally, the company faces potential margin compression due to an unfavorable sales mix, where high-margin aftermarket services may be offset by the delivery of new, lower-margin engines. Rising costs, including higher costs of sales, operating expenses, and increased research and development investments, also contribute to pressure on profit margins.
AI Analysis | Feedback
The accelerated global transition towards electrified, hybrid, and hydrogen-powered propulsion systems in aviation represents a clear emerging threat to GE Aerospace's core business of manufacturing traditional fossil fuel-burning jet engines. This shift, driven by increasing environmental regulations and technological advancements, could fundamentally alter the demand landscape for conventional turbofan and turboprop engines, potentially favoring companies or startups leading in these new propulsion technologies. While GE Aerospace is likely investing in future propulsion solutions, a rapid acceleration in this transition could disrupt its established market dominance and require significant strategic and technological adaptation.
AI Analysis | Feedback
GE Aerospace operates in several significant addressable markets globally. The key markets for their main products and services include commercial aircraft engines, military aircraft engines, aircraft electrical systems, aircraft mechanical power transmission systems, and aftermarket services (Maintenance, Repair, and Overhaul).- Commercial Aircraft Engines: The global commercial aircraft engines market was valued at approximately USD 95.56 billion in 2025 and is projected to grow to USD 117.13 billion by 2031.
- Military Aircraft Engines: The global military aircraft engine market size is valued at around USD 34.29 billion in 2025 and is projected to reach USD 67.19 billion by 2032.
- Aircraft Electrical Systems: The global aircraft electrical systems market size was valued at USD 23.55 billion in 2024 and is expected to reach USD 37.82 billion by 2032.
- Aircraft Mechanical Power Transmission Systems: The global aircraft mechanical power transmission system market was valued at USD 1.9 billion in 2023 and is anticipated to grow with a compound annual growth rate (CAGR) of 4.72% through 2029.
- Aftermarket Services (Maintenance, Repair, and Overhaul - MRO): The global aircraft MRO market size is estimated at USD 120.3 billion in 2025 and is anticipated to reach around USD 172.73 billion by 2035.
AI Analysis | Feedback
Here are 3-5 expected drivers of future revenue growth for GE Aerospace (symbol: GE) over the next 2-3 years:
- Strong Commercial Services and Aftermarket Growth: GE Aerospace anticipates robust growth from its commercial services segment, which accounts for a significant portion of its revenue. This growth is driven by increasing global air traffic, leading to higher aircraft utilization and, consequently, greater demand for maintenance, repair, and overhaul (MRO) services. The company expects commercial services revenue to grow mid-teens in 2026 and projects commercial engine services revenues to double to $20 billion by 2030 from $10 billion in 2024. This includes increased internal shop visits, higher workscopes, and strong spare parts sales, supported by an expanding installed base of engines like LEAP and GEnx and the aging of existing fleets.
- Increased Commercial Engine Deliveries: The company is poised for growth through increased deliveries of new commercial engines, particularly the highly sought-after CFM LEAP engine. GE Aerospace aims to boost LEAP engine production by 15-20% in 2025, with a longer-term goal of 2,500 units annually by 2028. This acceleration in equipment volume is supported by ongoing supply chain improvements and a substantial backlog, meeting pent-up demand from aircraft manufacturers like Boeing and Airbus.
- Growth in Defense & Propulsion Technologies: The Defense & Propulsion Technologies (DPT) segment is a steady contributor to revenue growth. This segment saw full-year orders rise 19% and revenue increase 11% in 2025, with defense jet engine deliveries growing 30% year-on-year. GE Aerospace expects mid-to-high single-digit revenue growth for DPT in 2026, bolstered by a stable backlog and new contract wins for military engines and related systems.
- Global Air Traffic Expansion: Favorable industry conditions, including the projected global air passenger traffic growth of 4.9% in 2026, will continue to fuel demand across GE Aerospace's businesses. This expansion drives increased flight hours, which in turn boosts the need for engine maintenance and the eventual demand for new aircraft, thereby benefiting both the commercial services and engine delivery segments.
- Strategic Investments and Operational Enhancements: GE Aerospace is investing nearly $1 billion in its U.S. manufacturing facilities and supply chain during 2025 to enhance production capacity and efficiency. The company's "FLIGHT DECK" operating model focuses on improving supply chain reliability, accelerating output, and reducing waste in its MRO network, which supports increased delivery volumes and improved turnaround times, ultimately contributing to revenue growth.
AI Analysis | Feedback
Share Repurchases
- GE Aerospace authorized a $15 billion share repurchase program in March 2024, which was set to commence after the GE Vernova spin-off.
- In December 2025, the Board approved a new authorization of up to $20 billion for common share repurchases, effective after the first quarter of 2026.
- GE (now GE Aerospace) spent $1.233 billion on share buybacks in 2023 and $5.827 billion in 2024, with plans to buy back $7 billion in 2025.
Share Issuance
- In January 2023, General Electric completed the spin-off of GE HealthCare, distributing one GE HealthCare share for every three GE shares held by investors.
- On April 2, 2024, General Electric spun off GE Vernova, distributing one share of GE Vernova for every four shares of GE owned, with the remaining company becoming GE Aerospace (trading as GE).
Outbound Investments
- In September 2021, GE's healthcare division acquired BK Medical for $1.45 billion, a company specializing in advanced surgical visualization using ultrasound technology.
- GE monetized approximately $9 billion in proceeds in 2023 by exiting its equity stakes in Baker Hughes and AerCap, and a portion of its GE HealthCare shares.
Capital Expenditures
- GE Aerospace's capital expenditures have increased from $662 million in 2022 to $1.273 billion in 2025.
- The company announced plans to invest nearly $1 billion in its U.S. manufacturing facilities and supply chain in 2025, with a focus on strengthening manufacturing, increasing the use of innovative parts, military engine production, and LEAP engine capacity.
- GE Aerospace plans to invest another $1 billion in its U.S. manufacturing sites and supplier network in 2026 to accelerate engine deliveries, expand production of key components, and strengthen defense manufacturing capacity.
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Trade Ideas
Select ideas related to GE.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 04302026 | GEO | GEO | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | 0.0% | 0.0% | 0.0% |
| 04302026 | RUN | Sunrun | Special | Short Squeeze PotentialShort Squeeze PotentialHas potential for a short squeeze. High short interest, rising short interest and high debt. | 0.0% | 0.0% | 0.0% |
| 04172026 | RSG | Republic Services | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.8% | 0.8% | -1.1% |
| 04102026 | VRSK | Verisk Analytics | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 12.3% | 12.3% | 0.0% |
| 04102026 | UHAL | U-Haul | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 0.3% | 0.3% | -1.0% |
| 05312022 | GE | GE Aerospace | Insider | Insider Buys 45DStrong Insider BuyingCompanies with multiple insider buys in the last 45 days | 9.7% | 65.4% | -21.9% |
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 256.94 |
| Mkt Cap | 157.0 |
| Rev LTM | 61,709 |
| Op Inc LTM | 6,870 |
| FCF LTM | 5,662 |
| FCF 3Y Avg | 5,621 |
| CFO LTM | 7,368 |
| CFO 3Y Avg | 6,839 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 8.5% |
| Rev Chg 3Y Avg | 7.2% |
| Rev Chg Q | 6.5% |
| QoQ Delta Rev Chg LTM | 1.5% |
| Op Inc Chg LTM | 20.8% |
| Op Inc Chg 3Y Avg | 5.4% |
| Op Mgn LTM | 11.0% |
| Op Mgn 3Y Avg | 9.9% |
| QoQ Delta Op Mgn LTM | 0.0% |
| CFO/Rev LTM | 11.0% |
| CFO/Rev 3Y Avg | 10.2% |
| FCF/Rev LTM | 7.8% |
| FCF/Rev 3Y Avg | 7.7% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 157.0 |
| P/S | 2.3 |
| P/Op Inc | 19.3 |
| P/EBIT | 22.1 |
| P/E | 32.6 |
| P/CFO | 21.1 |
| Total Yield | 4.7% |
| Dividend Yield | 1.2% |
| FCF Yield 3Y Avg | 2.9% |
| D/E | 0.2 |
| Net D/E | 0.2 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -9.4% |
| 3M Rtn | -9.8% |
| 6M Rtn | 1.9% |
| 12M Rtn | 20.0% |
| 3Y Rtn | 29.0% |
| 1M Excs Rtn | -18.7% |
| 3M Excs Rtn | -14.0% |
| 6M Excs Rtn | -2.0% |
| 12M Excs Rtn | -8.5% |
| 3Y Excs Rtn | -48.8% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Commercial Engines & Services | 26,881 | 23,855 | |||
| Defense & Propulsion Technologies | 9,478 | 8,961 | |||
| Corporate & Other | 2,343 | 2,532 | |||
| Aerospace | 26,050 | 20,274 | 20,597 | ||
| Corporate | 2,812 | 4,081 | 4,468 | ||
| Power | 16,262 | 16,558 | 17,237 | ||
| Renewable Energy | 12,977 | 15,559 | 15,523 | ||
| Healthcare | 17,724 | 18,008 | |||
| Total | 38,702 | 35,348 | 58,101 | 74,196 | 75,833 |
Price Behavior
| Market Price | $286.51 | |
| Market Cap ($ Bil) | 299.7 | |
| First Trading Date | 01/02/1962 | |
| Distance from 52W High | -17.0% | |
| 50 Days | 200 Days | |
| DMA Price | $305.63 | $297.59 |
| DMA Trend | up | down |
| Distance from DMA | -6.3% | -3.7% |
| 3M | 1YR | |
| Volatility | 39.1% | 29.8% |
| Downside Capture | 1.11 | 0.52 |
| Upside Capture | 120.56 | 108.42 |
| Correlation (SPY) | 58.6% | 48.2% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 2.03 | 1.72 | 1.52 | 1.39 | 1.15 | 1.15 |
| Up Beta | 2.49 | 2.23 | 2.05 | 1.77 | 1.36 | 1.10 |
| Down Beta | 6.53 | 1.11 | 1.37 | 1.20 | 1.15 | 1.23 |
| Up Capture | 66% | 88% | 124% | 114% | 115% | 223% |
| Bmk +ve Days | 15 | 22 | 31 | 66 | 141 | 428 |
| Stock +ve Days | 12 | 18 | 30 | 62 | 144 | 422 |
| Down Capture | 391% | 227% | 143% | 138% | 99% | 101% |
| Bmk -ve Days | 4 | 18 | 30 | 56 | 108 | 321 |
| Stock -ve Days | 10 | 25 | 34 | 63 | 108 | 327 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GE | |
|---|---|---|---|---|
| GE | 43.1% | 29.7% | 1.21 | - |
| Sector ETF (XLI) | 33.7% | 15.4% | 1.68 | 64.8% |
| Equity (SPY) | 30.6% | 12.5% | 1.88 | 48.4% |
| Gold (GLD) | 39.5% | 27.2% | 1.20 | 7.7% |
| Commodities (DBC) | 51.5% | 17.9% | 2.20 | -19.7% |
| Real Estate (VNQ) | 13.1% | 13.5% | 0.67 | 26.4% |
| Bitcoin (BTCUSD) | -17.1% | 42.2% | -0.33 | 24.5% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GE | |
|---|---|---|---|---|
| GE | 33.9% | 30.8% | 0.99 | - |
| Sector ETF (XLI) | 13.0% | 17.4% | 0.59 | 69.1% |
| Equity (SPY) | 12.8% | 17.1% | 0.59 | 59.9% |
| Gold (GLD) | 20.5% | 17.9% | 0.94 | 7.2% |
| Commodities (DBC) | 14.3% | 19.1% | 0.61 | 13.0% |
| Real Estate (VNQ) | 3.5% | 18.8% | 0.09 | 40.3% |
| Bitcoin (BTCUSD) | 7.7% | 56.2% | 0.35 | 23.7% |
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Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GE | |
|---|---|---|---|---|
| GE | 8.0% | 36.1% | 0.32 | - |
| Sector ETF (XLI) | 13.8% | 19.9% | 0.61 | 67.0% |
| Equity (SPY) | 14.9% | 17.9% | 0.71 | 56.2% |
| Gold (GLD) | 13.6% | 15.9% | 0.71 | 0.1% |
| Commodities (DBC) | 9.7% | 17.7% | 0.46 | 22.0% |
| Real Estate (VNQ) | 5.7% | 20.7% | 0.24 | 44.8% |
| Bitcoin (BTCUSD) | 67.7% | 66.9% | 1.07 | 13.7% |
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Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/21/2026 | -5.6% | -6.3% | |
| 1/22/2026 | -7.4% | -8.2% | 7.8% |
| 10/21/2025 | 1.3% | 3.4% | -2.2% |
| 7/17/2025 | -2.2% | -1.1% | 1.3% |
| 4/22/2025 | 6.1% | 12.6% | 31.9% |
| 1/23/2025 | 6.6% | 5.7% | 6.1% |
| 10/22/2024 | -9.0% | -9.7% | -8.6% |
| 7/23/2024 | 5.7% | 4.4% | 4.4% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 13 | 13 | 15 |
| # Negative | 12 | 12 | 9 |
| Median Positive | 4.6% | 5.7% | 11.3% |
| Median Negative | -3.3% | -4.5% | -4.4% |
| Max Positive | 8.3% | 12.6% | 47.9% |
| Max Negative | -10.3% | -15.9% | -17.1% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 04/21/2026 | 10-Q |
| 12/31/2025 | 01/29/2026 | 10-K |
| 09/30/2025 | 10/21/2025 | 10-Q |
| 06/30/2025 | 07/21/2025 | 10-Q |
| 03/31/2025 | 04/22/2025 | 10-Q |
| 12/31/2024 | 02/03/2025 | 10-K |
| 09/30/2024 | 10/22/2024 | 10-Q |
| 06/30/2024 | 07/23/2024 | 10-Q |
| 03/31/2024 | 04/23/2024 | 10-Q |
| 12/31/2023 | 02/02/2024 | 10-K |
| 09/30/2023 | 10/24/2023 | 10-Q |
| 06/30/2023 | 07/25/2023 | 10-Q |
| 03/31/2023 | 04/25/2023 | 10-Q |
| 12/31/2022 | 02/10/2023 | 10-K |
| 09/30/2022 | 10/25/2022 | 10-Q |
| 06/30/2022 | 07/26/2022 | 10-Q |
Recent Forward Guidance [BETA]
Latest: Q1 2026 Earnings Reported 4/21/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Operating Profit | 9.85 Bil | 10.05 Bil | 10.25 Bil | 0 | Affirmed | Guidance: 10.05 Bil for 2026 | |
| 2026 Adjusted EPS | 7.1 | 7.25 | 7.4 | 0 | Affirmed | Guidance: 7.25 for 2026 | |
| 2026 Free Cash Flow | 8.00 Bil | 8.20 Bil | 8.40 Bil | 0 | Affirmed | Guidance: 8.20 Bil for 2026 | |
| 2026 CES Revenue Growth | 15.0% | Affirmed | |||||
| 2026 CES Operating Profit | 9.60 Bil | 9.75 Bil | 9.90 Bil | 0 | Affirmed | Guidance: 9.75 Bil for 2026 | |
| 2026 DPT Revenue Growth | 5.0% | 7.0% | 9.0% | Affirmed | |||
| 2026 DPT Operating Profit | 1.55 Bil | 1.60 Bil | 1.65 Bil | 0 | Affirmed | Guidance: 1.60 Bil for 2026 | |
Prior: Q4 2025 Earnings Reported 1/22/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| 2026 Operating Income | 9.85 Bil | 10.05 Bil | 10.25 Bil | 14.9% | Raised | Actual: 8.75 Bil for 2025 | |
| 2026 EPS | 7.1 | 7.25 | 7.4 | 18.8% | Raised | Actual: 6.1 for 2025 | |
| 2026 Free Cash Flow | 8.00 Bil | 8.20 Bil | 8.40 Bil | 13.9% | Raised | Actual: 7.20 Bil for 2025 | |
| 2026 Commercial Engines & Services (CES) Operating Profit | 9.60 Bil | 9.75 Bil | 9.90 Bil | 14.0% | Raised | Actual: 8.55 Bil for 2025 | |
| 2026 Defense & Propulsion Technologies (DPT) Operating Profit | 1.55 Bil | 1.60 Bil | 1.65 Bil | 28.0% | Raised | Actual: 1.25 Bil for 2025 | |
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Gowder, Amy L | Senior Vice President | Direct | Sell | 2032026 | 305.73 | 4,000 | 1,222,920 | 5,055,246 | Form |
| 2 | Stokes, Russell | Senior Vice President | Direct | Sell | 2032026 | 306.47 | 30,363 | 9,305,490 | 46,104,207 | Form |
| 3 | Giglietti, Robert M | Vice President | Direct | Sell | 2032026 | 305.51 | 3,035 | 927,235 | 3,233,255 | Form |
| 4 | Stokes, Russell | Senior Vice President | Direct | Sell | 11202025 | 297.71 | 8,000 | 2,381,680 | 44,785,706 | Form |
| 5 | Ali, Mohamed | Senior Vice President | Direct | Sell | 8062025 | 268.79 | 1,517 | 407,755 | 2,253,536 | Form |
GE Trade Sentinel
ACCUMULATE (Score 7-8)
CONVICTION RATIONALE
GE Aerospace earns a high conviction 'ACCUMULATE' rating. The company exhibits all the traits of a 'Quality Compounder' with a widening competitive moat and exceptional forward visibility from its massive backlog. The primary alpha driver—margin expansion from a recurring services model—is well underway and supported by strong leading indicators like order growth. While the valuation is at a premium, it is justified by the superior business model. The score reflects high confidence in the core thesis, warranting accumulation of the stock, particularly on any macro-induced pullbacks.
STOCK ARCHETYPE
Type B: 'Quality Compounder / Stalwart'GE Aerospace fits the 'Quality Compounder' archetype due to its dominant market position, a massive ~$210B services backlog ensuring earnings consistency, high switching costs creating a durable moat, and a focus on capital efficiency with FCF conversion guided over 100% of net income. Its value is driven by predictable, high-margin recurring revenue, not hyper-growth.
INVESTMENT THESIS
The primary driver of shareholder value will be the significant, structural margin expansion as the mix of revenue shifts increasingly towards the high-margin (~26.4%) commercial aftermarket. This is propelled by the maturation of the massive LEAP engine installed base entering its first highly profitable shop visit cycle and sustained pricing power in a supply-constrained environment.
- Commercial services revenue grew an exceptional 39% YoY in Q1 2026, indicating robust underlying demand.
- The total backlog stands at over $210 billion, with ~$170 billion in the high-margin services segment, providing multi-year revenue and profit visibility.
- Commercial Engines & Services operating margin is already strong at 26.4%, with a clear path to expand towards peer Honeywell's target of ~29%.
- Recent major engine wins with American, United, and Delta for LEAP and GEnx engines continue to fuel the installed base for future services.
PRIMARY RISK
The most significant risk to the thesis is the persistent, industry-wide shortage of complex components like forgings and castings. This acts as a hard ceiling on both new engine production and, more critically, the ability to fulfill high-margin aftermarket demand for spare parts, potentially delaying revenue recognition and disappointing margin expansion expectations.
- Management stated in Q1 2026 that demand for spare parts 'continues to exceed supply' and that parts 'delinquency' increased by ~70% since the end of 2024.
- The risk is described as the primary 'pacing item' for the entire industry, with executives expecting the challenged environment to persist through 2025 and 2026.
| KPI | Threshold | Rationale |
|---|---|---|
| Commercial Services Revenue Growth YoY | >20% | This is the direct pulse of the high-margin profit engine. Sustained growth above 20% validates the Alpha Driver thesis. |
| Total Orders Growth YoY / Book-to-Bill Ratio | Book-to-Bill > 1.2x | This is the leading indicator for future revenue and confirms that demand is still vastly outpacing current output, refilling the backlog and providing long-term visibility. |
| Commercial Engines & Services Operating Margin | >26%, with upward trend | Measures the profitability of the core business. Any erosion in this metric would signal issues with pricing power or cost control, challenging the margin expansion thesis. |
Services Growth vs. Supply Chain Ceiling
BULL VIEW
Massive services backlog ($170B) and strong LEAP fleet maturation will drive significant margin expansion towards 29%, justifying the premium valuation despite supply constraints.
CORE TENSION
Can GE's high-margin services growth and backlog execution overcome the structural forging/casting shortage that caps physical output and risks a high-multiple narrative break?
PREVAILING SENTIMENT
Q1 2026 Commercial Services revenue growth of +39% and Total Orders growth of +87% confirm the services-led expansion thesis is currently overpowering the known supply chain constraints.
BEAR VIEW
Persistent forging/casting shortage is a hard ceiling on fulfilling high-margin spare parts demand, risking a revenue and profit miss that breaks the 'quality' narrative.
| Timeline | Event & Metric To Watch |
|---|---|
Late July 2026 | Q2 2026 Earnings Call Watch: Commercial Services Operating Margin. Watch for sequential decline from Q1's 26.4% or services revenue growth below mid-teens, which would confirm the 'execution failure' bear case. |
July 22-26, 2026 | Farnborough Airshow OEM Updates Watch: Formal 2026/2027 delivery target announcements from Boeing or Airbus. Any downward revision explicitly citing engine supply constraints would be a negative signal. |
Late October 2026 | Q3 2026 Earnings Call Watch: Total Orders Growth / Book-to-Bill Ratio. Must remain above 1.2x to prove demand continues to vastly outpace output after a blowout +87% YoY orders in Q1. |
Ongoing (Next 6 Months) | Key Supplier Earnings (Howmet, PCC) Watch: Negative revisions to output forecasts for castings or forgings, which would be a direct confirmation that the primary industry bottleneck is worsening. |
Ongoing (Next 6 Months) | Macro Data (CPI/Jobs) & Fed Policy Watch: 10-Year US Treasury yield crossing and holding above 4.5%, which would signal a 'risk-off' environment for high-multiple stocks. |
| Date | Event | Stock Impact |
|---|---|---|
Jan 2, 2026 | FAA Airworthiness Directive on GE90 Engines Details: The FAA issued a critical directive for GE90 engines due to powder metal contamination concerns, though the market's positive reaction suggested minimal perceived financial impact. | Rose significantly by 4.1% $307.58 -> $320.28 |
Jan 22, 2026 | Q4 2025 Earnings Release Details: Despite a history of beating conservatively set guidance ('sandbagging'), the stock reacted negatively. This release precedes the most recent Q1 report. | Plummeted 7.4% $318.03 -> $294.57 |
Feb 20, 2026 | Major Q1 Engine Orders Announced Details: Secured orders for over 650 commercial engines, including 300+ LEAP engines for American Airlines and 300 GEnx engines for United, reinforcing market share gains. | Rose significantly by 2.5% $334.25 -> $342.72 |
Mar 11, 2026 | FAA Airworthiness Directive on GEnx Engines Details: The FAA made effective an Airworthiness Directive for GEnx engines due to a forged ingot defect, highlighting ongoing regulatory oversight of manufacturing quality. | Changed Little (-0.4%) $326.52 -> $325.15 |
Apr 21, 2026 | Q1 2026 Earnings Release Details: Beat revenue/EPS but stock fell on operating margin narrowing to 21.8% from 23.8% and maintained FY guidance. Commercial services revenue grew an exceptional 39% YoY. | Plummeted 5.6% $303.60 -> $286.73 |
Position Sizing
4%-6%
NORMAL
Stock is trading with moderate volatility at 2.7x the S&P, and near-term fear is spiking. While fundamentals are strong and sentiment is Bullish, the premium valuation limits the margin of safety. Therefore, we cap exposure to Normal (4-6%).
Diversification Alternatives
CR
SECTORMore diversified industrial exposure beyond pure aerospace. Provides a different risk profile while still participating in the aerospace upcycle via its Aerospace & Electronics segment.
ISSC
INDUSTRYA smaller, more nimble pure-play in the high-margin avionics retrofit market. Less exposed to large-scale engine production bottlenecks that affect GE.
GE Aerospace is a high-margin, durable industrial franchise whose value is driven by a massive ~$210 billion backlog of long-term, recurring services revenue tied to its industry-leading installed base of commercial and military aircraft engines.
Filter all news through the lens of services revenue growth and margin durability, which underpins the company's long-term value.
Commercial services revenue growth >+20% YoY; book-to-bill ratio >1.0; new engine wins with major airlines (e.g., United, American, Delta); long-term service agreement renewals (e.g., Ryanair).
Sustained downturn in global air travel leading to aircraft parking/retirements (impacting services demand); systemic technical issues with a major engine platform (e.g., LEAP, GEnx); significant market share loss to Pratt & Whitney or Rolls-Royce.
Quarterly fluctuations in new engine delivery margins (expected to be low/negative); minor adjustments to air traffic departure outlook due to short-term geopolitical events; single-quarter supply chain disruptions impacting spare parts delivery.
Repricing Catalyst
The market's increasing appreciation of GE Aerospace as a pure-play leader with a business model where lower-margin initial engine sales lock in decades of high-margin, recurring services revenue. This is driven by a strong post-pandemic recovery in flight hours, leading to robust demand for aftermarket services and spare parts, which grew 39% in Q1 2026.
Commercial Engines & Services
$35.7B TTM (77% of Total) · 26% MarginWhat It Is
LEAP-1A/1B for Airbus A320neo & Boeing 737MAX; GEnx for Boeing 787 & 747; GE9X for Boeing 777X; legacy engines including CFM56 and GE90.
Who Pays & How
Airlines (e.g., American, United, Delta, Ryanair) and airframers (Boeing, Airbus) pay for engines and, more importantly, enter multi-decade service agreements. The razor-blade model creates extreme lock-in, as switching engine suppliers on a fleet costs billions and is technically infeasible once an aircraft is certified.
Competition
Defense & Propulsion Technologies
$12.9B TTM (23% of Total) · 12% MarginWhat It Is
F110 engines for F-15/F-16 fighters; T700 turboshaft engines for Black Hawk and Apache helicopters; T408 for CH-53K King Stallion helicopter.
Who Pays & How
The U.S. Department of Defense and allied governments pay for engines and long-term service contracts to ensure military fleet readiness and performance. Contracts are typically long-cycle and provide stable, non-cyclical revenue.
Competition
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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