GE Aerospace (GE) AI Stock Analysis

• Market Cap: $320.53B
• Dividend Yield: 0.43%
• Average Volume (3M): 3.99M
• Price to Earnings (P/E): 40.5
• Beta (1Y): 1.28
• Revenue Growth: -19.21%
• EPS Growth: 31.83%
• Country: US
• Employees: 53,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.66
• Shares Outstanding: 1,054,814,000
• 10 Day Avg. Volume: 3,812,100
• 30 Day Avg. Volume: 3,985,218
• PEG Ratio: -0.97
• Price to Book (P/B): 9.36
• Price to Sales (P/S): 4.68
• P/FCF Ratio: 49.20
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 7.48
• Enterprise Value/Gross Profit: 19.79
• Enterprise Value/Ebitda: 29.39
• 1Y Price Target: $343.89
• Price Target Upside: 9.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9

• Rating: 77 Outperform
• Price Target: $345.00 ▲(10.28% Upside)

GE Aerospace's strong financial performance and positive earnings call are the primary drivers of its stock score. The company's robust revenue growth, high profit margins, and raised guidance contribute significantly. Technical analysis supports a stable outlook, though valuation concerns due to a high P/E ratio slightly temper the overall score.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for GE Aerospace's products and services, enhancing its market position and supporting long-term financial stability.

Operational Efficiency

Enhanced operational efficiency and supply chain improvements boost productivity and cost-effectiveness, supporting sustainable profit margins and competitive advantage.

Cash Flow Generation

Strong cash flow conversion underscores GE Aerospace's ability to generate cash, facilitating reinvestment in growth opportunities and debt reduction.

Negative Factors

Debt Reliance

Reliance on debt financing can strain financial flexibility and increase risk, particularly if interest rates rise or cash flow generation weakens.

9X Program Losses

Projected losses in the 9X program could negatively impact profit margins and divert resources from other growth initiatives, affecting long-term profitability.

Spare Engine Ratio Decline

A decline in spare engine ratios may indicate potential challenges in meeting service demand, which could affect customer satisfaction and future service revenue.

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 for commercial and military aircraft. Key revenue streams include the sale of new engines, aftermarket services such as maintenance, repair, and overhaul (MRO), and long-term service agreements with airlines and defense contractors. The company benefits from significant partnerships with major aircraft manufacturers and airlines, which secure long-term contracts and contribute to steady revenue. Additionally, advancements in aerospace technology and a focus on fuel efficiency and sustainability initiatives play a crucial role in driving demand for GE Aerospace's products and services.

GE Aerospace Financial Statement Overview

Summary

GE Aerospace demonstrates strong financial performance with robust revenue growth and efficient cash flow management. The company maintains a healthy EBIT margin and low leverage, although attention to maintaining EBITDA margins 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.99B	38.70B	35.35B	29.14B	56.47B	75.83B
Gross Profit	16.62B	14.39B	12.41B	10.15B	13.09B	17.96B
EBITDA	11.19B	9.79B	12.65B	4.04B	-1.54B	12.95B
Net Income	8.06B	6.56B	9.48B	336.00M	-6.34B	5.70B
Balance Sheet
Total Assets	128.24B	125.76B	176.11B	188.85B	198.87B	256.21B
Cash, Cash Equivalents and Short-Term Investments	13.51B	14.60B	20.91B	23.42B	28.07B	43.85B
Total Debt	20.84B	20.38B	21.76B	26.15B	38.03B	78.10B
Total Liabilities	109.22B	106.20B	147.50B	153.94B	157.11B	218.65B
Stockholders Equity	18.81B	19.34B	27.40B	33.70B	40.31B	35.55B
Cash Flow
Free Cash Flow	6.50B	3.68B	3.58B	4.74B	2.37B	194.00M
Operating Cash Flow	7.61B	4.71B	5.18B	5.92B	3.48B	3.60B
Investing Cash Flow	-899.00M	-1.67B	3.98B	2.27B	21.38B	16.64B
Financing Cash Flow	-10.02B	-6.73B	-8.61B	-5.58B	-45.40B	-19.85B

GE Aerospace Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 312.84
• 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 312.84 is above the 20-day moving average (MA) of 300.98, above the 50-day MA of 289.65, and above the 200-day MA of 238.31, indicating a bullish trend. The MACD of 4.38 indicates Negative momentum. The RSI at 64.17 is Neutral, neither overbought nor oversold. The STOCH value of 63.34 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
GD	―	$94.35B	22.73	17.78%	1.67%	11.86%	17.39%
GE	―	$320.53B	40.52	42.74%	0.43%	-19.21%	31.83%
NOC	―	$86.43B	21.74	26.15%	1.47%	-0.14%	72.35%
RTX	―	$239.53B	36.68	10.49%	1.46%	8.79%	39.63%
LMT	―	$112.32B	27.10	62.78%	2.71%	2.88%	-35.15%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BA	―	$167.38B	―	―	―	2.41%	-193.57%

GE Aerospace Corporate Events

GE Aerospace Earnings Call: Strong Growth Amid Challenges

The recent earnings call for GE Aerospace was marked by a robust performance, showcasing significant growth in both revenue and profit. The company reported operational improvements and increased guidance, painting a positive picture overall. While challenges such as a decline in spare engine ratios and expected losses in the 9X program were noted, the positive aspects of the report significantly outweighed these concerns.

GE Aerospace Reports Strong Q3 2025 Earnings Growth

GE Aerospace, a global leader in the aerospace sector, specializes in commercial and military propulsion systems, with a significant aftermarket services business that constitutes around 70% of its revenue. The company is renowned for its innovation and strategic focus on safety, quality, and cost efficiency.

GE Aerospace Elects Wesley Bush to Board

On September 29, 2025, GE Aerospace announced the election of Wesley G. Bush, former Chairman and CEO of Northrop Grumman Corporation, to its Board of Directors, effective December 1, 2025. This change follows the announcement of current director Stephen Angel’s new role as CEO of CSX Corp., leading to his resignation from the Board on December 4, 2025. The Board will adjust its size to accommodate these changes, with Bush joining the Audit Committee and other committee leadership roles being reassigned. The inclusion of Bush, with his extensive experience in the aerospace and defense industry, is expected to enhance GE Aerospace’s strategic direction and shareholder value.

The most recent analyst rating on (GE) stock is a Buy with a $340.00 price target. To see the full list of analyst forecasts on GE Aerospace stock, see the GE Stock Forecast page.

GE Aerospace Completes $2 Billion Notes Offering

On July 29, 2025, GE Aerospace completed its public offering of $2 billion in aggregate principal amount of notes, with $1 billion due in 2030 and another $1 billion due in 2036. This strategic financial move is expected to bolster the company’s capital structure and enhance its market positioning in the aerospace sector.

The most recent analyst rating on (GE) stock is a Buy with a $216.00 price target. To see the full list of analyst forecasts on GE Aerospace stock, see the GE Stock Forecast page.