GE
IndustrialsGE Aerospace
Price Chart
Market Data
Financials
XBRL · SEC EDGAR2007–2025(19yr)| Metric | FY 2007 | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $172.5B | $182.5B | $156.8B | $150.2B | $147.3B | $147.4B | $146.0B | $148.6B | $117.4B | $123.7B | $122.1B | $121.6B | $95.2B | $79.6B | $74.2B | $76.6B | $68.0B | $38.7B | $45.9B | +18.5% |
| Gross Profit | $125.2B | $127.9B | $106.2B | $104.2B | $95.8B | $90.6B | $88.2B | $87.3B | $57.5B | $61.3B | $57.8B | $48.8B | $25.2B | $19.2B | — | — | — | — | — | — |
| Gross Margin | 72.6% | 70.1% | 67.7% | 69.4% | 65.1% | 61.5% | 60.4% | 58.8% | 49.0% | 49.5% | 47.3% | 40.1% | 26.5% | 24.1% | — | — | — | — | — | — |
| Operating Income | $25.6B | $21.9B | $15.6B | $17.3B | $20.7B | $22.9B | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Operating Margin | 14.8% | 12.0% | 10.0% | 11.5% | 14.0% | 15.5% | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Net Income | $22.2B | $17.4B | $11.0B | $11.6B | $14.2B | $13.6B | $13.1B | $15.2B | -$6.1B | $8.8B | -$5.8B | -$22.4B | -$5.0B | $5.7B | -$6.5B | $225.0M | $9.5B | $6.6B | $8.7B | +32.8% |
| Net Margin | 12.9% | 9.5% | 7.0% | 7.8% | 9.6% | 9.3% | 8.9% | 10.3% | -5.2% | 7.1% | -4.7% | -18.4% | -5.2% | 7.2% | -8.8% | 0.3% | 14.0% | 16.9% | 19.0% | +2.0pp |
| Free Cash Flow | $25.5B | $32.6B | $16.0B | $26.3B | $20.7B | $16.2B | $15.1B | $14.0B | $12.6B | -$7.4B | $3.1B | -$3.4B | $3.0B | $345.0M | $2.1B | $4.5B | $3.6B | $3.7B | $7.3B | +97.5% |
| FCF Margin | 14.8% | 17.9% | 10.2% | 17.5% | 14.1% | 11.0% | 10.4% | 9.4% | 10.7% | -6.0% | 2.5% | -2.8% | 3.1% | 0.4% | 2.8% | 5.9% | 5.3% | 9.5% | 15.8% | +6.3pp |
| EPS (Diluted) | $2.17 | $1.72 | $1.01 | $1.06 | $1.23 | $1.29 | $1.27 | $1.50 | $-0.61 | $0.89 | $-0.72 | $-2.62 | $-0.62 | $0.58 | $-6.16 | $-0.05 | $8.36 | $5.99 | $8.14 | +35.9% |
1. THE BIG PICTURE
GE Aerospace is no longer a sprawling conglomerate but a focused propulsion giant that uses engine sales as the "hook" for a decades-long services annuity. With the industry’s largest commercial fleet and a massive $190 billion backlog, GE Aerospace’s primary challenge has shifted from winning orders to navigating a "supply-constrained environment" to meet surging global demand (10-K Item 1, 8-K).
2. WHERE THE RISKS HIT HARDEST
GE Aerospace’s greatest strength—its 70% revenue dependency on aftermarket services—is directly threatened by the cyclicality of the commercial aviation sector (10-K Item 1). If high fuel prices or macroeconomic instability reduce passenger traffic, the "internal shop visits" that drove a 30% revenue increase in the most recent quarter would likely contract, hitting GE Aerospace’s most profitable segment (8-K, Risks). Furthermore, the "FLIGHT DECK" lean operating model, designed to drive execution and cost savings, is vulnerable to "sole-source dependencies" (Competitive Position). No amount of internal operational efficiency can offset the failure of a limited-source supplier to deliver critical components on schedule.
3. WHAT THE NUMBERS SAY TOGETHER
While GE Aerospace reports a gross margin of 9.2%—the lowest among its peer group—this figure belies its actual cash-generating power. GE Aerospace leads its peers with a 14.7% Free Cash Flow (FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders) margin, suggesting that its business model is exceptionally efficient at converting sales into liquid capital despite the heavy hardware costs reflected in gross margins (XBRL). Revenue growth of 18.5% is currently the highest in its peer group, significantly outperforming competitors like RTX (+9.7%) and Lockheed Martin (+5.6%). This growth is being driven by a 31% surge in services revenue, which validates GE Aerospace’s strategy of prioritizing the aftermarket (8-K). With short interest at a negligible 1.5% of the float, market sentiment remains broadly constructive regarding GE Aerospace’s ability to maintain this trajectory (Supplemental Signals).
4. IS IT WORTH IT AT THIS PRICE?
At 38.3x forward earnings, GE Aerospace trades at a 39% premium to the peer median of 27.6x. According to the (CAPM analysis), the market is pricing in approximately 9.4% long-term growth. This valuation appears supported by GE Aerospace’s recent performance, specifically the 18% revenue jump in Q4 2025 and guidance for mid-teens growth in the Commercial Engines & Services segment for 2026 (8-K). However, the sensitivity is high: if long-term growth were to slow to 8.0%, the justified multiple would drop to 24.8x, representing significant downside. The current premium is essentially a bet on GE Aerospace’s ability to resolve supply chain issues; management’s report that material input from priority suppliers rose 40% in 2025 provides evidence that this bet is grounded in operational progress (8-K).
5. WHAT WOULD CHANGE THIS VIEW?
- Cautious if shop visit revenue or spare parts sales (which grew 30% and 25% respectively in Q4) begin to decelerate, as these are the primary engines of GE Aerospace's 14.7% FCFFCFFree Cash Flow — cash left after paying for operations and capital investments; what the company can actually spend, save, or return to shareholders margin.
- Constructive if the GE9X engine successfully enters service and mirrors the rapid adoption of the LEAP engine, which is already expected to become the industry's largest fleet (10-K Item 1).
6. BOTTOM LINE
Structural Advantage: A massive, proprietary installed base of 80,000 engines that creates a high-barrier, 70%-revenue services moat. Bottom Line: GE Aerospace is a premier industrial growth story priced at a significant premium, justified only by its superior cash flow and record-high backlog.
1. Top 5 Material Risks
- Global Macro-environment: GE Aerospace faces significant risks from geopolitical conflicts, trade barriers, and inflationary pressures that increase material and labor costs, particularly when customer contract pricing cannot be adjusted to offset these expenses.
- Commercial Aviation Sector: As a cyclical industry, commercial aviation demand for engines and aftermarket services is sensitive to fuel prices, airline bankruptcies, and passenger traffic levels, all of which can reduce sales and profit margins.
- Competitive Environment: GE Aerospace must maintain technology leadership, such as the RISE program, to avoid losing market share; failure to innovate or successfully integrate artificial intelligence could lead to weaker-than-anticipated returns on research and development investments.
- Government Programs and Contracts: Defense business performance is tied to U.S. federal spending and policy; contract modifications, terminations, or failures to meet performance requirements can lead to significant financial penalties and reputational harm.
- Climate and Environmental Factors: Evolving regulations on greenhouse gas emissions and the demand for low-carbon technologies require significant operational expenditures, and failure to develop these technologies ahead of competitors could render older product lines obsolete.
2. Company-Specific Risks
- GE Spin-offs: The separations of GE HealthCare and GE Vernova create potential tax liabilities if the transactions are determined to be taxable, and GE Aerospace remains exposed to credit support obligations for GE Vernova.
- Run-off Insurance and Banking: GE Aerospace retains legacy financial services exposure, including the Bank BPH mortgage portfolio in Poland and statutory insurance reserves, which may require additional capital contributions if assumptions regarding inflation or discount rates prove unfavorable.
- Operational Execution: The ramp-up of newer engine platforms like the LEAP and GE9X requires precise execution to meet customer expectations for durability and "time on wing"; failure to manage these complex production cycles can lead to liquidated damages and unanticipated expenses.
- Intellectual Property Dependencies: GE Aerospace faces risks from the theft of trade secrets via social engineering and cyber-attacks, as well as potential litigation from non-practicing entities that could enjoin GE Aerospace from offering specific products or services.
3. Regulatory/Legal Risks
- Government Enforcement: GE Aerospace is subject to the U.S. False Claims Act and similar legislation; non-compliance with government contract provisions can result in significant financial penalties, suspension, or debarment.
- Tax Audits: GE Aerospace is subject to ongoing tax audits in multiple jurisdictions; adverse interpretations of global income tax laws or changes to global minimum tax rules could increase the effective tax rate and cash tax costs.
- Environmental Litigation: GE Aerospace faces potential liabilities related to the alleged exposure of workers to hazardous materials such as asbestos and polychlorinated biphenyls (PCBs), with legal reserves based on judgments that may not reflect final outcomes.
- Cybersecurity Compliance: Expanding global requirements, such as the Department of War’s Cybersecurity Maturity Model Certification, impose additional compliance obligations that, if unmet, could lead to regulatory fines and operational disruptions.
4. Financial Impact Map
Global Macro-environment → Profitability and Cash Flows → Increased material or labor costs that cannot be offset by customer contract pricing. Commercial Aviation Sector → Sales and Profit Margins → Reductions in new orders or aftermarket service demand due to cyclical downturns or airline restructuring. Government Programs and Contracts → Results of Operations → Financial penalties, cost overruns, or contract terminations leading to potential debarment. Run-off Insurance and Banking → Funding and Liquidity → Potential capital contributions required for insurance subsidiaries or Bank BPH litigation contingencies. Borrowings & Liquidity → Cost of Funds → Credit rating downgrades resulting from changes in financial performance or business strategy.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-K | Jan 2026 | Dec 2025 |
| 8-K | Jan 2026 | — |
| 10-Q | Oct 2025 | Sep 2025 |
| 14A | Mar 2025 | — |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
GE Aerospace Q4 Revenue $12.72B, FY26 EPS Guidance $7.10–$7.40, Dividend Raised 30%
- ▸Q4 revenue $12.72B, beating analyst estimates
- ▸FY25 free cash flow doubled to $7.694B
- ▸FY26 EPS guidance set at $7.10–$7.40
- ▸Quarterly dividend increased to $0.47 from $0.36
- ▸Backlog stands at $190B with $24B capital return program through 2026
GE Aerospace projects 2026 low-double-digit revenue growth, 15% LEAP engine delivery increase
- ▸2026 adjusted revenue growth projected in low-double-digit range
- ▸LEAP engine deliveries expected to grow over 15% in 2026
- ▸Investing $1B in U.S. manufacturing and technology for 2025 and 2026
- ▸$300M investment planned for Singapore engine repair capabilities through 2029
- ▸Commercial engines and services unit growth forecast in mid-teens for 2026
Daiwa Initiates GE Aerospace at Neutral with $301 Target, Citing High Valuation Expectations
- ▸Daiwa initiates GE Aerospace at Neutral with $301 price target
- ▸Street consensus price target remains at $361.89
- ▸Forward P/E ratio currently stands at 38.02
- ▸Q4 2025 revenue $12.72B, +28% YoY, beating estimates by 19.69%
- ▸FY26 guidance: adjusted EPS $7.10–$7.40, free cash flow $8.0B–$8.4B
Amrize Ltd completes acquisition of PB Materials Holdings, expanding West Texas footprint by 26 locations
- ▸Acquired PB Materials Holdings, adding 26 locations in West Texas
- ▸Truist Securities reaffirmed Buy rating with $75 price target
- ▸Cement revenues and margins cited as key growth drivers post-spinoff
- ▸Potential cement tariffs expected to favor local players like Amrize
- ▸Growth driven by aggregate price increases and internal cost-cutting efforts
Morgan Stanley Maintains Overweight Ratings on GE Aerospace and TransDigm Amid Sector Selloff
- ▸GE Aerospace FY25 revenue +21% YoY, operating profit +$1.8B
- ▸GE Aerospace FY25 free cash flow $7.7B, up 24% YoY
- ▸GE Aerospace FY26 EPS guidance $7.10–$7.40, +15% at midpoint
- ▸TransDigm Q1 EBITDA margins 52.4%, beat internal expectations
- ▸TransDigm FY26 revenue guidance midpoint raised to $9.94B, +13% YoY
GE Aerospace expands Palantir AI partnership to optimize military aviation supply chain and production
- ▸Expanded multi-year partnership with Palantir to deploy agentic AI
- ▸Focus on supply chain visibility and predictive maintenance for military fleets
- ▸Aims to reduce production bottlenecks and improve engine delivery speed
- ▸Complements $1.0 billion planned investment in U.S. manufacturing footprint
- ▸GE projects $50.8 billion revenue and $9.5 billion earnings by 2028
GE Aerospace Defense Segment Revenue +11%, Orders +19% Amid Strong Military Contract Wins
- ▸Defense & Propulsion segment revenue +11% YoY, orders +19% in 2025
- ▸Secured $5B U.S. Air Force contract for F110 engines and support
- ▸Awarded $1.4B Naval Air Systems Command contract for T408 engines
- ▸Partnered with Palantir (PLTR) to enhance U.S. Air Force fleet management
- ▸Projecting 2026 defense segment revenue growth in mid-to-high single digits
GE Aerospace to invest $55 million in Limestone County manufacturing facility
- ▸$55 million investment in Limestone County, Alabama site
- ▸$1 billion total planned investment in US manufacturing for 2026
- ▸Investment focuses on expanding domestic production capacity