GE Aerospace (GE) AI Stock Analysis

• Market Cap: $284.21B
• Dividend Yield: 0.47%
• Average Volume (3M): 7.30M
• Price to Earnings (P/E): 36.7
• Beta (1Y): 1.31
• Revenue Growth: -32.80%
• EPS Growth: 69.39%
• Country: US
• Employees: 53,000
• Sector: Industrials
• Sector Strength: 94
• Industry: Aerospace & Defense
• EPS (TTM): 1.66
• Shares Outstanding: 1,060,439,300
• 10 Day Avg. Volume: 8,166,771
• 30 Day Avg. Volume: 7,296,490
• PEG Ratio: 3.28
• Price to Book (P/B): 15.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 50.35
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.54
• Enterprise Value/Gross Profit: 5.07
• Enterprise Value/Ebitda: 3.32
• 1Y Price Target: $289.10
• Price Target Upside: 6.45% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 78 Outperform
• Price Target: $305.00 ▲(12.30%Upside)

GE Aerospace scores well due to its strong financial performance and optimistic earnings call outlook. The technical analysis supports a strong upward trend, although valuation concerns and nearing overbought conditions suggest caution. Strategic corporate events further bolster the company's financial position.

Positive Factors

Earnings Growth

Robust aftermarket services demand to underpin one of the fastest earnings growth in the sector.

Financial Performance

GE expects to be price/cost positive through improved pricing strategies and managing supply chain inflation.

Market Position

GE's engines are essential components on nearly every popular commercial jet, boasting significant market shares—67% of the current fleet and 72% of the order backlog.

Negative Factors

Macroeconomic Factors

A downturn in global air traffic due to macroeconomic weakness could negatively impact demand for aftermarket services.

Operational Challenges

OE losses are anticipated to widen from $250MM to $450MM.

GE Aerospace Business Overview & Revenue Model

Company Description

GE Aerospace is an American aircraft company, which engages in the provision of jet and turboprop engines, as well as integrated systems for commercial, military, business, and general aviation aircraft. The firm's portfolio of brands includes Avio Aero, Unison, GE Additive, and Dowty Propellers. It operates through the Commercial Engines & Services and Defense & Propulsion Technologies segments. The Commercial Engines & Services segment is involved in the design, development, manufacturing, and servicing of jet engines for commercial airframes, as well as business aviation and aeroderivative applications. The Defense & Propulsion Technologies segment offers defense engines and critical aircraft systems. The company was founded by Thomas Alva Edison in 1878 and is headquartered in Evendale, OH.

How the Company Makes Money

GE Aerospace generates revenue primarily through the sale of jet engines and related systems to aircraft manufacturers and airlines worldwide. Additionally, the company provides comprehensive maintenance, repair, and overhaul (MRO) services, which form a significant part of its revenue stream. Long-term service agreements with airlines and military contracts also contribute substantially to its earnings. Strategic partnerships and joint ventures with other aerospace firms enhance its technology offerings and market reach, further bolstering its financial performance.

GE Aerospace Financial Statement Overview

Summary

GE Aerospace demonstrates strong financial performance with significant revenue growth, robust cash flow management, and a stable balance sheet. The company's low leverage and high return on equity are positive, though maintaining EBITDA margins and equity levels is advisable.

Income Statement

GE Aerospace has shown strong revenue growth with a 7.51% increase in TTM compared to the previous year, driven by robust market demand. The company has a healthy EBIT margin of 18.77% and a notable net profit margin of 18.64% for TTM, indicating solid operational efficiency. However, the dip in EBITDA margin from 22.27% to 21.52% suggests potential cost pressures.

Balance Sheet

The balance sheet reflects a favorable debt-to-equity ratio of 0.10 for TTM, highlighting low leverage. The equity ratio stands at 15.28%, indicating a stable financial structure. However, the return on equity of 40.53% underscores the company's ability to generate profits from shareholder investments, though lower equity as a percentage of total assets might raise some concerns.

Cash Flow

GE Aerospace exhibits strong cash flow management with a significant free cash flow growth rate of 53.00% in TTM, compared to the prior annual report. The operating cash flow to net income ratio of 0.86 and free cash flow to net income ratio of 0.73 demonstrate efficient cash generation, supporting ongoing operations and investments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	38.70B	35.35B	29.14B	56.47B	75.83B
Gross Profit	14.39B	12.41B	10.15B	13.09B	17.96B
EBITDA	9.79B	12.65B	4.04B	-1.54B	12.95B
Net Income	6.56B	9.48B	336.00M	-6.34B	5.70B
Balance Sheet
Total Assets	123.14B	163.04B	188.85B	198.87B	253.45B
Cash, Cash Equivalents and Short-Term Investments	14.60B	22.67B	23.42B	28.07B	43.95B
Total Debt	19.27B	21.76B	26.15B	38.03B	78.10B
Total Liabilities	103.58B	134.47B	153.94B	157.26B	216.38B
Stockholders Equity	19.34B	27.38B	33.70B	40.31B	35.55B
Cash Flow
Free Cash Flow	3.68B	3.58B	4.74B	1.97B	194.00M
Operating Cash Flow	4.71B	5.18B	5.92B	3.33B	3.60B
Investing Cash Flow	-1.67B	3.98B	2.27B	21.31B	16.64B
Financing Cash Flow	-6.73B	-8.61B	-5.58B	-45.18B	-19.85B

GE Aerospace Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 271.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 271.59 is above the 20-day moving average (MA) of 257.31, above the 50-day MA of 247.56, and above the 200-day MA of 203.08, indicating a bullish trend. The MACD of 6.53 indicates Negative momentum. The RSI at 68.96 is Neutral, neither overbought nor oversold. The STOCH value of 73.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GE.

GE Aerospace Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GE	78 Outperform	$284.21B	36.74	40.20%	0.47%	-32.80%	69.39%
GD	76 Outperform	$84.53B	21.28	17.91%	1.86%	11.85%	16.12%
RTX	76 Outperform	$207.77B	34.38	10.13%	1.64%	15.44%	164.00%
NOC	71 Outperform	$81.40B	20.90	26.50%	1.49%	-0.65%	77.20%
LMT	64 Neutral	$98.18B	23.61	73.06%	3.10%	1.09%	-35.50%
BA	59 Neutral	$174.38B	―	-162.23%	―	-9.15%	-406.76%
Sector *	58 Neutral	HK$14.94B	4.62	-2.78%	5.07%	3.80%	-54.55%

GE Aerospace Corporate Events

GE Aerospace Secures $2 Billion in Notes Sale

On July 22, 2025, GE Aerospace entered into an underwriting agreement with major financial institutions for the issuance and sale of $2 billion in notes, split between 4.300% Notes due 2030 and 4.900% Notes due 2036. This financial move is part of the company’s strategic efforts to strengthen its market position and secure funding for future operations, potentially impacting stakeholders by enhancing the company’s financial stability.

The most recent analyst rating on (GE) stock is a Buy with a $198.00 price target. To see the full list of analyst forecasts on GE Aerospace stock, see the GE Stock Forecast page.

GE Aerospace Shareholders Meeting Approves Key Proposals

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.