GE Aerospace (GE)
NYSE:GE
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GE Aerospace
(NYSE:GE)
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Rating:70Outperform
Price Target:
$374.00
▲(26.11% Upside)
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, improving FCF demonstrates durable cash-generation capacity. Strong operating cash flow and multi-year positive FCF support reinvestment in MRO capacity, targeted share reductions and guided $8.0–$8.4B FCF for 2026, providing flexibility to fund growth and service obligations.
Negative Factors
GE9X (NINEX) program losses
Program-level losses tied to GE9X are a structural ramp risk as shipments increase. Even though guidance incorporates this, rising NRE and unit loss exposure can depress consolidated margins and cash conversion during scale-up, requiring sustained execution to normalize program economics.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow strength
Sustained, improving FCF demonstrates durable cash-generation capacity. Strong operating cash flow and multi-year positive FCF support reinvestment in MRO capacity, targeted share reductions and guided $8.0–$8.4B FCF for 2026, providing flexibility to fund growth and service obligations.
Read all positive factors
GE Aerospace (GE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$311.04B
Dividend Yield0.48%
Average Volume (3M)5.23M
Price to Earnings (P/E)37.8
Beta (1Y)1.45
Revenue Growth-19.21%
EPS Growth31.83%
CountryUS
Employees53,000
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.57
Shares Outstanding1,048,813,600
10 Day Avg. Volume6,057,204
30 Day Avg. Volume5,230,436
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 Cap0.99
Enterprise Value/Revenue6.73
Enterprise Value/Gross Profit18.25
Enterprise Value/Ebitda25.61
Forecast
1Y Price Target
$372.00Price Target Upside25.44% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
EPS Forecast (FY)7.45
Revenue Forecast (FY)$48.09B
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 generates revenue primarily through the sale of jet engines and related components, as well as through aftermarket services, which include maintenance, repair, and overhaul (MRO) services for its products. The company benefits from lo...
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
Negative
296.56
Price Trends
315.46
Negative
309.23
Negative
291.64
Positive
Market Momentum
-8.64
Positive
39.51
Neutral
32.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GE, the sentiment is Negative. The current price of 296.56 is below the 20-day moving average (MA) of 314.68, below the 50-day MA of 315.46, and above the 200-day MA of 291.64, indicating a neutral trend. The MACD of -8.64 indicates Positive momentum. The RSI at 39.51 is Neutral, neither overbought nor oversold. The STOCH value of 32.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $98.10B | 19.57 | 26.50% | 1.55% | -0.14% | 72.35% | |
75 Outperform | $261.75B | 36.54 | 10.62% | 1.44% | 8.79% | 39.63% | |
74 Outperform | $95.31B | 21.58 | 17.57% | 1.73% | 11.86% | 17.39% | |
74 Outperform | $143.62B | 22.26 | 80.53% | 2.77% | 2.88% | -35.15% | |
70 Outperform | $311.04B | 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 | $156.76B | 74.05 | -94.94% | ― | 10.19% | -6.03% |
* Industrials Sector Average
GE
GE Aerospace
296.56
91.76
44.81%
BA
Boeing
199.61
20.50
11.45%
GD
General Dynamics
352.50
88.11
33.33%
LMT
Lockheed Martin
624.20
193.68
44.99%
NOC
Northrop Grumman
691.21
185.52
36.69%
RTX
RTX
195.00
63.79
48.61%
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.