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GE Aerospace (GE)
NYSE:GE
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GE Aerospace
(NYSE:GE)
71Outperform
Positive Factors
Financial Performance
The company's CES Services segment reported impressive profit margins and growth, reinforcing confidence in its financial performance.
Market Positioning
GE's proactive tariff mitigation strategy, market positioning, and operational strength have insulated them from the tariff tidal wave affecting other companies.
Profit Guidance
GE has shown strong control over its business environment by reaffirming its profit guidance despite including significant tariffs and macroeconomic challenges.
Negative Factors
Air Traffic
A downturn in global air traffic due to macroeconomic weakness could negatively impact demand for aftermarket services.
Travel Demand
Potential risks to travel demand and further export/import restrictions on aero could pose a headwind to GE's commercial business.
GE Aerospace (GE) vs. S&P 500 (SPY)
Market Cap
$233.49B
Dividend Yield0.67%
Average Volume (3M)7.04M
Price to Earnings (P/E)34.1
Beta (1Y)1.31
Revenue Growth-42.92%
EPS Growth109.75%
CountryUS
Employees53,000
SectorIndustrials
Sector Strength89
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.49
Shares Outstanding1,066,386,600
10 Day Avg. Volume4,312,119
30 Day Avg. Volume7,044,870
Financial Highlights & Ratios
PEG Ratio4.13
Price to Book (P/B)11.03
Price to Sales (P/S)0.00
P/FCF Ratio48.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$226.73Price Target Upside1.56% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
GE Aerospace Business Overview & Revenue Model
Company DescriptionGeneral Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. It also offers aftermarket services to support its products. The company operates in the United States, Europe, China, Asia, the Americas, the Middle East, and Africa. General Electric Company was incorporated in 1892 and is based in Evendale, Ohio.
How the Company Makes MoneyGE Aerospace generates revenue primarily through the sale of jet engines and related systems to commercial airlines, military organizations, and aircraft manufacturers. The company also earns substantial income from long-term service agreements, providing maintenance, repair, and overhaul (MRO) services to ensure optimal performance and longevity of its engines and systems. Additionally, GE Aerospace capitalizes on digital solutions, offering analytics and software that enhance aircraft performance and operational efficiency. Strategic partnerships with key aviation industry players and ongoing investments in research and development further bolster its revenue streams, positioning the company as a leader in the aerospace sector.
GE Aerospace Financial Statement Overview
Summary
GE Aerospace demonstrates strong profitability with a robust net profit margin and effective cost management. The balance sheet is stable with low leverage and effective equity usage. However, negative free cash flow growth flags potential challenges in cash generation, requiring attention to cash management strategies.Income Statement
GE Aerospace shows a strong Gross Profit Margin of 38.1% in TTM, indicating effective cost management. The Net Profit Margin is also robust at 17.6%, reflecting solid profitability. Revenue Growth Rate from 2024 to TTM is 2.5%, suggesting moderate growth, while the EBIT and EBITDA Margins of 18.9% and 22.8% respectively, highlight efficiency in operations. Overall, the income statement demonstrates stability with room for growth.78
Positive
Balance Sheet
The Debt-to-Equity Ratio in TTM is low at 0.11, which indicates low financial leverage and a strong equity base. The Return on Equity is healthy at 36.3%, showcasing effective use of equity to generate profits. The Equity Ratio stands at 15.5%, which suggests a stable financial structure but leaves room for improvement in asset management. Overall, the balance sheet reflects financial stability with controlled leverage.70
Positive
Cash Flow
The Free Cash Flow Growth Rate from 2024 to TTM is negative at -21.1%, which could signal potential challenges in cash generation. However, the Operating Cash Flow to Net Income Ratio of 0.53 indicates adequate cash conversion. The Free Cash Flow to Net Income Ratio is 0.41, showing reasonable cash flow relative to net income. The cash flow statement reveals some concerns in growth but maintains operational cash adequacy.65
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 39.68B | 38.70B | 67.95B | 58.10B | 56.47B | 75.83B |
| Gross Profit | |||||
| 15.12B | 14.39B | 17.56B | 13.83B | 13.09B | 17.96B |
| EBIT | |||||
| 7.50B | 6.66B | 3.57B | 276.00M | 1.06B | 409.00M |
| EBITDA | |||||
| 9.83B | 9.79B | 13.38B | 3.54B | 3.38B | 2.83B |
| Net Income Common Stockholders | |||||
| 7.00B | 6.56B | 9.48B | 339.00M | -6.34B | 5.70B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 13.40B | 14.60B | 22.67B | 23.42B | 28.07B | 43.95B |
| Total Assets | |||||
| 124.12B | 123.14B | 163.04B | 188.85B | 198.87B | 253.45B |
| Total Debt | |||||
| 19.57B | 19.27B | 22.94B | 26.15B | 35.19B | 75.07B |
| Net Debt | |||||
| 7.17B | 5.65B | 5.97B | 10.34B | 19.41B | 38.44B |
| Total Liabilities | |||||
| 104.66B | 103.58B | 134.47B | 153.94B | 157.26B | 216.38B |
| Stockholders Equity | |||||
| 19.25B | 19.34B | 27.38B | 33.70B | 40.31B | 35.55B |
| Cash Flow | Free Cash Flow | ||||
| 4.41B | 3.68B | 3.58B | 4.74B | 1.97B | 194.00M |
| Operating Cash Flow | |||||
| 5.23B | 4.71B | 5.18B | 5.92B | 3.33B | 3.60B |
| Investing Cash Flow | |||||
| -2.79B | -1.67B | 3.98B | 2.27B | 21.31B | 16.64B |
| Financing Cash Flow | |||||
| -8.81B | -6.73B | -8.61B | -5.58B | -45.18B | -19.85B |
GE Aerospace Technical Analysis
Positive
223.24
Price Trends
197.70
Positive
193.69
Positive
184.82
Positive
Market Momentum
7.51
Negative
74.96
Negative
95.05
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GE, the sentiment is Positive. The current price of 223.24 is above the 20-day moving average (MA) of 202.81, above the 50-day MA of 197.70, and above the 200-day MA of 184.82, indicating a bullish trend. The MACD of 7.51 indicates Negative momentum. The RSI at 74.96 is Negative, neither overbought nor oversold. The STOCH value of 95.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GE.
GE Aerospace Risk Analysis
GE Aerospace disclosed 18 risk factors in its most recent earnings report. GE Aerospace reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
GE Aerospace Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $74.14B | 19.17 | 18.23% | 2.11% | 14.11% | 17.65% | |
76 Outperform | $110.86B | 20.44 | 82.55% | 2.81% | 3.12% | -15.29% | |
73 Outperform | $174.42B | 38.28 | 7.54% | 1.93% | 15.11% | 34.14% | |
71 Outperform | $233.49B | 34.14 | 28.09% | 0.67% | -42.92% | 109.75% | |
70 Outperform | $68.96B | 18.86 | 25.41% | 1.75% | 0.61% | 77.28% | |
64 Neutral | $4.40B | 12.09 | 5.26% | 250.03% | 4.08% | -11.05% | |
52 Neutral | $153.38B | ― | -162.23% | ― | -9.15% | -406.76% |
* Industrials Sector Average
Performance Comparison
GE
GE Aerospace
223.24
60.86
37.48%
BA
Boeing
204.72
27.73
15.67%
GD
General Dynamics
270.69
-17.88
-6.20%
LMT
Lockheed Martin
449.18
-3.04
-0.67%
NOC
Northrop
456.30
-5.41
-1.17%
RTX
RTX
130.79
27.70
26.87%
GE Aerospace Earnings Call Summary
Earnings Call Date:Apr 22, 2025
(Q1-2025)
| % Change Since: 25.17%|
Next Earnings Date:Jul 29, 2025
Earnings Call Sentiment Positive
GE Aerospace reported a strong start to the fiscal year with significant growth in orders, revenue, and profit. The company is investing heavily in U.S. manufacturing and R&D, and it has a robust backlog. However, challenges remain due to tariffs, supply chain issues, and uncertainties in departure growth. Despite these challenges, the company's strong performance and strategic investments position it well for the future.Q1-2025 Updates
Positive Updates
Strong Start to Fiscal Year 2025
GE Aerospace delivered strong first-quarter results with orders up 12% and revenue growing 11%. Profit increased by 38% to $2.1 billion, leading to margins of 23.8%.
Commercial Engines & Services Growth
Services strength continued with orders up 31% and revenue up 17%, driving total operating profit growth of 35% year-over-year.
Defense & Propulsion Technologies Performance
Defense units grew 5% and profit increased by 16%, showing solid performance in the Defense & Propulsion Technologies segment.
Increased Investment in U.S. Manufacturing
GE Aerospace is investing $1 billion in U.S. manufacturing this year and hiring over 5,000 U.S. workers.
Robust Backlog and R&D Investment
The company is executing a $170 billion-plus backlog and investing approximately $3 billion in annual R&D spending.
Negative Updates
Impact of Tariffs
Heightened tariffs are expected to result in additional costs of roughly $500 million despite strategies to optimize operations.
Supply Chain Challenges
There is a lag in converting orders to revenue due to broader supply chain dynamics, with spare parts delinquency increasing over 2x year-over-year.
Uncertainty in Departure Growth
The company is taking a cautious approach with a slower second half in their estimate, resulting in anticipated low single-digit departure growth for the full year.
Company Guidance
In the first quarter of fiscal year 2025, GE Aerospace reported significant growth, with orders increasing by 12% and revenue rising by 11%, both driven by double-digit growth in Services and Equipment segments. The company achieved a 38% increase in profit, amounting to $2.1 billion, resulting in a profit margin of 23.8%. Earnings per share (EPS) rose by 60% year-over-year to $1.49, while free cash flow reached $1.4 billion. In the Commercial Engines & Services (CES) division, orders and revenue grew by 31% and 17%, respectively, contributing to a 35% year-over-year increase in operating profit. Defense & Propulsion Technologies (DPT) also performed well, with defense units growing by 5% and profit rising by 16%. GE Aerospace maintained its guidance for the full year, expecting low double-digit revenue growth, profit between $7.8 billion and $8.2 billion, EPS of $5.10 to $5.45, and free cash flow in the range of $6.3 billion to $6.8 billion. The company also continued its commitment to research and development, investing approximately $3 billion annually, while addressing supply chain challenges and advocating for a zero-tariff regime in the aviation sector.GE Aerospace Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
GE Aerospace Shareholders Meeting Approves Key Proposals
Neutral
May 9, 2025
On May 6, 2025, GE Aerospace held its annual shareholders meeting where all company nominees for director were elected, the advisory vote on executive compensation was approved, and Deloitte & Touche LLP was ratified as the independent auditor for 2025. However, a shareholder proposal requesting a vote on severance payments was not approved. These decisions reflect the company’s strategic direction and governance priorities, impacting its operational focus and stakeholder engagement.
Spark’s Take on GE Stock
According to Spark, TipRanks’ AI Analyst, GE is a Outperform.
GE Aerospace shows strong financial performance with high profitability and stable leverage. The earnings call highlights significant growth and strategic investments, though challenges like tariffs and supply chain issues persist. Technical analysis indicates positive momentum, but valuation metrics suggest the stock may be overvalued.
To see Spark’s full report on GE stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.