GE Aerospace (GE) AI Stock Analysis

• Market Cap: $345.67B
• Dividend Yield: 0.48%
• Average Volume (3M): 5.66M
• Price to Earnings (P/E): 40.5
• Beta (1Y): 1.38
• Revenue Growth: -19.21%
• EPS Growth: 31.83%
• Country: US
• Employees: 53,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 1.57
• Shares Outstanding: 1,048,813,600
• 10 Day Avg. Volume: 4,446,037
• 30 Day Avg. Volume: 5,658,682
• PEG Ratio: 1.08
• Price to Book (P/B): 17.60
• Price to Sales (P/S): 7.17
• P/FCF Ratio: 45.25
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 7.97
• Enterprise Value/Gross Profit: 21.60
• Enterprise Value/Ebitda: 30.31
• 1Y Price Target: $370.83
• Price Target Upside: 8.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $378.00 ▲(10.13% Upside)
• Action: Upgraded Date: 01/30/26
• Date: Action: Upgraded 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

Large backlog & order strength

A ~ $190B backlog from strong orders provides multi-year revenue visibility, smoothing near-term cyclicality and underpinning production planning. Durable backlog supports steady aftermarket conversion, production cadence, and predictable cash flows across the 2–6 month horizon and beyond.

Improving free cash flow generation

Significantly stronger operating cash flow and FCF sustain reinvestment, MRO expansion, and debt reduction capacity. Durable cash generation enhances financial flexibility to fund automation, R&D, and shop capacity increases while supporting shareholder actions or cushioning program losses.

CES integration & leadership reshuffle

Consolidating lifecycle functions under the expanded CES and promoting focused commercial leadership strengthens cross-functional execution and customer responsiveness. Structurally this should raise agility, reduce friction across OE-to-aftermarket flows, and accelerate durable improvements in service margins and delivery.

Negative Factors

GE9X program losses

Escalating GE9X losses as shipments ramp pose a structural earnings and cash drag through the production scale-up. Even if expected, doubling losses in 2026 can absorb profit margins and FCF, requiring ongoing funding and execution focus to return the engine to normalized profitability.

Moderate-to-elevated leverage

Debt slightly exceeding equity limits balance-sheet resilience and reduces optionality for additional investment or absorbing program overruns. Compressed equity amplifies leverage ratios and makes the company more sensitive to cyclical shocks, constraining capital allocation over upcoming quarters.

Margin mix pressure & inventory build

Higher OEM shipments, a lower spare-engine ratio, and a $1B inventory buildup create persistent margin mix and working-capital headwinds. These structural effects can compress gross and operating margins and tie cash in inventory while production and aftermarket mix normalize over multiple quarters.

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 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

Strong 2024–2025 inflection with high and expanding profitability (net margin ~16.9% to 19.0%) and robust, improving free cash flow (FCF ~$7.3B in 2025). Main offsets are moderate leverage (debt-to-equity ~1.05–1.10), a compressed equity cushion versus prior years, and some historical volatility in results.

Income Statement

Profitability has strengthened materially: net margin improved from a loss in 2021 (-11.2%) to strong profitability in 2024 (16.9%) and 2025 (19.0%), alongside solid operating earnings and high gross margin stability (~37% in 2024–2025). Revenue rebounded meaningfully after earlier declines, with 2025 showing a strong acceleration in growth versus 2024. Main weakness is volatility across the period (sharp revenue drop in 2021 and very weak profitability in 2022), indicating earnings power has not been uniform through the cycle.

Balance Sheet

Leverage is moderate-to-elevated: debt is slightly above equity in 2024–2025 (debt-to-equity ~1.05–1.10), though improved substantially from 2020 when leverage was much higher (~2.11). Equity has declined from 2021–2023 levels, which reduces balance-sheet cushion, but returns on equity are very strong in 2024–2025 (about 34% to 47%), reflecting improved profitability. Key risk is that leverage remains meaningful and the equity base has compressed versus prior years.

Cash Flow

Cash generation is strong and improving: operating cash flow rose sharply in 2025 ($8.5B vs. $4.7B in 2024) and free cash flow expanded to $7.3B with healthy growth. Free cash flow is consistently positive across all years provided, supporting reinvestment and balance-sheet flexibility. Weaknesses include year-to-year volatility (notably a decline in 2023 free cash flow vs. 2022) and some provided cash-conversion fields appearing inconsistent/zero in 2025, limiting visibility on cash-to-earnings conversion for that year.

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

• Technical Analysis Sentiment: Positive
• Last Price: 343.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 343.22 is above the 20-day moving average (MA) of 312.43, above the 50-day MA of 311.38, and above the 200-day MA of 282.17, indicating a bullish trend. The MACD of 6.33 indicates Negative momentum. The RSI at 70.42 is Negative, neither overbought nor oversold. The STOCH value of 94.90 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
NOC	77 Outperform	$102.87B	24.92	26.17%	1.55%	-0.14%	72.35%
RTX	75 Outperform	$274.91B	41.27	10.74%	1.44%	8.79%	39.63%
GD	74 Outperform	$94.50B	22.62	17.66%	1.73%	11.86%	17.39%
LMT	74 Outperform	$149.51B	30.24	76.87%	2.77%	2.88%	-35.15%
GE	70 Outperform	$345.67B	40.53	45.24%	0.48%	-19.21%	31.83%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BA	56 Neutral	$187.64B	123.27	289.00%	―	10.19%	-6.03%

GE Aerospace Corporate Events

GE Aerospace announces leadership reshuffle and CES expansion

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 that longtime executive Russell Stokes will retire on July 31, 2026 after serving as Special Advisor to the Chairman and CEO to ensure a smooth transition. The expanded CES organization will now oversee the full commercial engine lifecycle, integrating technology and operations functions such as product safety, quality, engineering, supply chain, global manufacturing, and aftermarket services, a move aimed at improving agility, cross-functional problem-solving, and customer responsiveness, while a newly created role for Jason Tonich as Chief Commercial Sales & Customer Officer—reporting directly to the CEO—cements a tighter focus on integrated sales and customer experience, with implications for streamlined operations and potentially stronger competitive positioning in the commercial aviation engine market.

The most recent analyst rating on (GE) stock is a Hold with a $352.00 price target. To see the full list of analyst forecasts on GE Aerospace stock, see the GE Stock Forecast page.