GE Aerospace (GE)
NYSE:GE
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GE Aerospace
(NYSE:GE)
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Rating:70Outperform
Price Target:
$301.00
▼(-5.35% Downside)
Action:UpgradedDate:01/30/26
The score is driven by strong financial momentum (material margin and FCF improvement) and constructive 2026 guidance backed by a large and growing backlog. Offsetting factors are weak near-term technical signals and a demanding valuation (high P/E, low yield), along with acknowledged margin headwinds and GE9X loss ramp risk.
Positive Factors
Free cash flow strength
Sustained and improving free cash flow (2025 FCF growth and 2026 guidance) supports reinvestment in MRO, R&D and capacity expansion, funds share reductions and debt servicing, and provides durable financial flexibility to weather industry cycles and fund long-term strategic initiatives.
Negative Factors
GE9X program losses
Persisting and increasing GE9X program losses as shipments ramp materially erode equipment margins and operating profit. If not contained, program overhang can compress consolidated margins and consume cash, posing a structural risk to sustained profitability during the ramp period.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow strength
Sustained and improving free cash flow (2025 FCF growth and 2026 guidance) supports reinvestment in MRO, R&D and capacity expansion, funds share reductions and debt servicing, and provides durable financial flexibility to weather industry cycles and fund long-term strategic initiatives.
Read all positive factors
GE Aerospace (GE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$325.88B
Dividend Yield0.48%
Average Volume (3M)5.37M
Price to Earnings (P/E)37.8
Beta (1Y)1.47
Revenue Growth-19.21%
EPS Growth31.83%
CountryUS
Employees53,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.57
Shares Outstanding1,044,829,600
10 Day Avg. Volume4,813,300
30 Day Avg. Volume5,366,241
Financial Highlights & Ratios
PEG Ratio1.08
Price to Book (P/B)17.60
Price to Sales (P/S)7.17
P/FCF Ratio45.25
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue7.39
Enterprise Value/Gross Profit20.04
Enterprise Value/Ebitda28.12
Forecast
1Y Price Target
$361.64Price Target Upside13.72% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering15
EPS Forecast (FY)7.48
Revenue Forecast (FY)$48.16B
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 Avi...
How the Company Makes Money
GE Aerospace primarily makes money through (1) original equipment (OE) sales and (2) aftermarket services over the life of an engine platform. OE revenue comes from selling new engines and related components/systems to airframe manufacturers, airl...
GE Aerospace Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down revenue contributions from different business areas, showing which segments are leading growth and which may require more focus.
Breaks down revenue contributions from different business areas, showing which segments are leading growth and which may require more focus.
Data provided by:
The Fly
The FlyGE Aerospace Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 21, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial momentum: substantial order, revenue, profit, and cash flow growth in 2025, record LEAP output and aftermarket improvements, sizeable backlog and confident 2026 guidance. However, notable near-term headwinds remain—primarily GE9X program losses, margin mix pressure from higher OEM shipments and a lower spare engine ratio, inventory build to support ramp, and continued supply-chain execution work. Management provided clear actions and investments (MRO expansion, integration of T&O into CES, R&D) to address constraints and sustain growth.Positive Updates
Strong Orders and Backlog Growth
Orders surged 74% in the fourth quarter and 32% for the full year 2025, driving backlog to roughly $190 billion—up nearly $20 billion year over year—providing multi-year revenue visibility.
Negative Updates
GE9X (NINEX) Program Losses
GE9X (9x/NINEX) program produced a couple-hundred-million-dollar loss in 2025 (in line with expectations) and management expects those losses to roughly double in 2026 as shipments increase; guidance already incorporates the incremental headwind.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Orders and Backlog Growth
Orders surged 74% in the fourth quarter and 32% for the full year 2025, driving backlog to roughly $190 billion—up nearly $20 billion year over year—providing multi-year revenue visibility.
Read all positive updates
Company Guidance
GE Aerospace guided to low-double-digit company revenue growth for 2026, with CES revenue growth in the mid-teens (services up mid‑teens; internal shop visit revenue and spare parts up mid‑teens; LEAP internal shop visits +25%; equipment up mid‑ to high‑teens with LEAP deliveries +15%) and DPT revenue mid‑to‑high single digits, targeting total operating profit of $9.85–$10.25 billion (CES profit $9.6–$9.9B; DPT profit $1.55–$1.65B), EPS of $7.10–$7.40 (≈+15% at the midpoint), free cash flow of $8.0–$8.4 billion with conversion well above 100%, CapEx at ~3% of sales, interest expense ≈$900M, a tax rate below 17%, an ~18 million share reduction, and corporate costs & eliminations of $1.2–$1.3 billion.GE Aerospace Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
68
Positive
Cash Flow
82
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 45.85B | 38.70B | 35.35B | 29.14B | 56.47B |
| Gross Profit | 16.89B | 14.39B | 12.41B | 10.15B | 13.09B |
| EBITDA | 12.06B | 9.79B | 12.65B | 4.04B | -1.54B |
| Net Income | 8.70B | 6.56B | 9.48B | 336.00M | -6.34B |
Balance Sheet | |||||
| Total Assets | 130.17B | 125.76B | 176.11B | 188.85B | 198.87B |
| Cash, Cash Equivalents and Short-Term Investments | 12.39B | 14.60B | 20.91B | 23.42B | 28.07B |
| Total Debt | 20.49B | 20.38B | 21.76B | 26.15B | 38.03B |
| Total Liabilities | 111.27B | 106.20B | 147.50B | 153.94B | 157.11B |
| Stockholders Equity | 18.68B | 19.34B | 27.40B | 33.70B | 40.31B |
Cash Flow | |||||
| Free Cash Flow | 7.26B | 3.68B | 3.58B | 4.74B | 2.37B |
| Operating Cash Flow | 8.54B | 4.71B | 5.18B | 5.92B | 3.48B |
| Investing Cash Flow | -1.15B | -1.67B | 3.98B | 2.27B | 21.38B |
| Financing Cash Flow | -8.68B | -6.73B | -8.61B | -5.58B | -45.40B |
GE Aerospace Technical Analysis
Positive
318.00
Price Trends
312.25
Positive
307.78
Positive
295.10
Positive
Market Momentum
-0.31
Negative
58.76
Neutral
91.34
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 318 is above the 20-day moving average (MA) of 294.79, above the 50-day MA of 312.25, and above the 200-day MA of 295.10, indicating a bullish trend. The MACD of -0.31 indicates Negative momentum. The RSI at 58.76 is Neutral, neither overbought nor oversold. The STOCH value of 91.34 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $96.69B | 19.57 | 26.50% | 1.55% | -0.14% | 72.35% | |
75 Outperform | $270.35B | 36.54 | 10.62% | 1.44% | 8.79% | 39.63% | |
74 Outperform | $92.14B | 21.58 | 17.57% | 1.73% | 11.86% | 17.39% | |
74 Outperform | $142.82B | 22.26 | 80.53% | 2.77% | 2.88% | -35.15% | |
70 Outperform | $325.88B | 37.76 | 45.88% | 0.48% | -19.21% | 31.83% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $174.57B | 74.05 | -94.94% | ― | 10.19% | -6.03% |
* Industrials Sector Average
GE
GE Aerospace
318.00
136.51
75.22%
BA
Boeing
223.77
67.30
43.01%
GD
General Dynamics
339.88
68.24
25.12%
LMT
Lockheed Martin
611.58
147.19
31.69%
NOC
Northrop Grumman
680.13
151.12
28.57%
RTX
RTX
202.81
75.71
59.56%
GE Aerospace Corporate Events
Business Operations and StrategyExecutive/Board Changes
GE Aerospace announces leadership reshuffle and CES expansion
Positive
Jan 15, 2026
On January 15, 2026, GE Aerospace announced a major leadership reshuffle and organizational realignment, naming Mohamed Ali as President and CEO of an expanded Commercial Engines and Services (CES) unit effective February 1, 2026, while confirming...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.