GE Aerospace (GE) AI Stock Analysis

• Market Cap: $324.05B
• Dividend Yield: 0.48%
• Average Volume (3M): 4.62M
• Price to Earnings (P/E): 41.0
• Beta (1Y): 1.37
• 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: 5,828,168
• 30 Day Avg. Volume: 4,617,410
• 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: 1.02
• Enterprise Value/Revenue: 7.48
• Enterprise Value/Gross Profit: 19.79
• Enterprise Value/Ebitda: 28.68
• 1Y Price Target: $342.36
• Price Target Upside: 8.78% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 6.23
• Revenue Forecast (FY): $41.56B

• Rating: 72 Outperform
• Price Target: $319.00 ▲(1.36% Upside)

GE Aerospace's overall stock score reflects strong financial performance and positive earnings call outcomes, which are the most significant factors. The technical analysis and valuation present some concerns, but the company's strategic improvements and raised guidance support a positive outlook.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for GE Aerospace's products and services, supporting long-term financial stability and market position.

Strategic Agreements

The strategic agreement with Saudia Group strengthens GE Aerospace's market position and ensures a steady revenue stream through long-term partnerships.

Operational Improvements

Operational improvements and supply chain enhancements increase efficiency and support sustainable growth, enhancing competitive advantage.

Negative Factors

Debt Levels

Moderate leverage could pose risks if not managed carefully, potentially impacting financial flexibility and long-term stability.

9X Program Losses

Projected losses in the 9X program could strain profit margins and affect overall financial performance, posing a challenge to sustained profitability.

Spare Engine Ratios

Declining spare engine ratios may indicate potential issues in inventory management, affecting service reliability and customer satisfaction.

GE Aerospace Business Overview & Revenue Model

Company Description

GE Aerospace, a division of General Electric Company, is a leading provider of jet engines, aircraft systems, and avionics for commercial, military, and business aviation. The company specializes in designing, manufacturing, and servicing advanced technology jet engines and offers a comprehensive portfolio of products and solutions that enhance aircraft performance and operational efficiency. GE Aerospace serves a diverse range of clients, including airlines, aircraft manufacturers, and defense contractors, positioning itself at the forefront of the aerospace industry.

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 long-term contracts and partnerships with major aircraft manufacturers and airlines, ensuring a steady stream of income from both initial sales and ongoing service agreements. Additionally, GE Aerospace leverages its technological advancements and innovations to create high-value products that meet the needs of the evolving aviation market, contributing to its profitability. Strategic collaborations with defense agencies and international partnerships also play a significant role in enhancing its revenue, especially in the military sector.

GE Aerospace Financial Statement Overview

Summary

GE Aerospace exhibits strong financial performance with robust revenue growth and high profit margins. The company shows efficient operational management and solid cash flow generation. However, a moderate level of leverage and reliance on debt financing present potential risks.

Income Statement

GE Aerospace has demonstrated strong revenue growth with a 5.72% increase in TTM, supported by robust gross and net profit margins of 37.79% and 18.33%, respectively. The EBIT and EBITDA margins are also healthy at 23.38% and 25.45%, indicating efficient operational management. The consistent improvement in profitability metrics over the years highlights a positive trajectory.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.11, reflecting a balanced approach to leveraging. Return on Equity is impressive at 42.13%, showcasing effective use of shareholders' equity to generate profits. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

GE Aerospace's cash flow performance is strong, with a significant 18.34% growth in free cash flow. The operating cash flow to net income ratio is 0.20, indicating solid cash generation relative to net income. The free cash flow to net income ratio of 0.85 further underscores the company's ability to convert earnings into cash, supporting future investments and debt servicing.

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	11.47B	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: 314.73
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 314.73 is above the 20-day moving average (MA) of 294.22, above the 50-day MA of 300.05, and above the 200-day MA of 258.22, indicating a bullish trend. The MACD of 1.86 indicates Negative momentum. The RSI at 64.12 is Neutral, neither overbought nor oversold. The STOCH value of 89.61 is Negative, 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	80 Outperform	$91.67B	21.99	17.78%	1.73%	11.86%	17.39%
NOC	76 Outperform	$81.13B	20.41	26.15%	1.54%	-0.14%	72.35%
RTX	74 Outperform	$244.03B	37.37	10.49%	1.44%	8.79%	39.63%
GE	72 Outperform	$324.05B	40.96	42.74%	0.48%	-19.21%	31.83%
LMT	70 Outperform	$109.71B	26.47	62.78%	2.76%	2.88%	-35.15%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BA	54 Neutral	$167.64B	-15.84	―	―	10.19%	-6.03%

GE Aerospace Corporate Events

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.