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GE Aerospace (GE)
NYSE:GE
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GE Aerospace (GE) AI Stock Analysis

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GE

GE Aerospace

(NYSE:GE)

Rating:78Outperform
Price Target:
$305.00
▲(12.30%Upside)
GE Aerospace scores well due to its strong financial performance and optimistic earnings call outlook. The technical analysis supports a strong upward trend, although valuation concerns and nearing overbought conditions suggest caution. Strategic corporate events further bolster the company's financial position.
Positive Factors
Earnings Growth
Robust aftermarket services demand to underpin one of the fastest earnings growth in the sector.
Financial Performance
GE expects to be price/cost positive through improved pricing strategies and managing supply chain inflation.
Market Position
GE's engines are essential components on nearly every popular commercial jet, boasting significant market shares—67% of the current fleet and 72% of the order backlog.
Negative Factors
Macroeconomic Factors
A downturn in global air traffic due to macroeconomic weakness could negatively impact demand for aftermarket services.
Operational Challenges
OE losses are anticipated to widen from $250MM to $450MM.

GE Aerospace (GE) vs. SPDR S&P 500 ETF (SPY)

GE Aerospace Business Overview & Revenue Model

Company DescriptionGE 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 MoneyGE Aerospace generates revenue primarily through the sale of jet engines and related systems to aircraft manufacturers and airlines worldwide. Additionally, the company provides comprehensive maintenance, repair, and overhaul (MRO) services, which form a significant part of its revenue stream. Long-term service agreements with airlines and military contracts also contribute substantially to its earnings. Strategic partnerships and joint ventures with other aerospace firms enhance its technology offerings and market reach, further bolstering its financial performance.

GE Aerospace Key Performance Indicators (KPIs)

Any
Any
Services Orders
Services Orders
Tracks incoming orders for services, reflecting demand for maintenance and support, and indicating potential for stable, recurring revenue.
Chart InsightsGE Aerospace's Services Orders show robust growth, particularly in the Commercial Engines & Services segment, reflecting a strategic focus on expanding this area. The latest earnings call highlights a 31% increase in orders and a 17% rise in revenue, contributing to a 35% profit growth. Despite challenges like tariffs and supply chain issues, the company's strong backlog and significant R&D investments position it well for continued growth. However, caution is advised due to potential impacts from supply chain delays and uncertainties in departure growth.
Data provided by:Main Street Data

GE Aerospace Earnings Call Summary

Earnings Call Date:Jul 17, 2025
(Q2-2025)
|
% Change Since: 2.03%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue and profit growth, a robust order backlog, and positive long-term outlook, supported by supply chain improvements and technological advancements. However, challenges such as tariff impacts, inflation, and expected losses related to new platform ramps were also noted. Despite these challenges, the overall sentiment is optimistic due to the company's strong market position and increased financial guidance.
Q2-2025 Updates
Positive Updates
Revenue Growth
GE Aerospace reported a 23% increase in revenue for the second quarter of 2025, with Commercial Engines & Services growing by 30% and Defense & Propulsion Technologies by 7%.
Order Increase
Orders were up 27% year-over-year, indicating strong demand across both commercial and defense sectors.
Profit and Margin Expansion
Operating profit was $2.3 billion, up 23% year-over-year, with margins reaching 23%, driven by service volume and pricing improvements.
Strong Backlog
GE Aerospace has a robust commercial services backlog exceeding $140 billion and a total order backlog of 1,600 engines, effectively selling out through the decade.
Positive Long-term Outlook
For 2028, GE Aerospace raised its outlook for profit and free cash flow by $1.5 billion, expecting double-digit revenue growth and substantial free cash flow of at least $8.5 billion.
Supply Chain Improvement
Material input at priority supplier sites was up 10% sequentially, with suppliers delivering over 95% of committed volume.
New Technology and Investment
Significant investments in new technologies, including AI-enabled tools for engine inspections and over $1 billion in MRO and component repair facilities.
Negative Updates
Impact of Tariffs
Reciprocal tariffs are expected to have a net impact of approximately $500 million in 2025, though mitigated by cost controls and pricing actions.
Challenges in Second Half 2025
Guidance implies a nearly $500 million lower EBIT in the second half compared to the first half, despite improved full-year expectations.
GE9X Losses
Incremental GE9X losses are expected to be a few hundred million dollars higher in 2028 versus 2025 due to increased volume.
Rising Inflation
Supply chain materials are expected to remain tight, contributing to a sustained high inflationary environment.
Company Guidance
During the GE Aerospace Investor Update and Second Quarter 2025 Earnings Webcast, the company provided revised guidance and financial outlooks. GE Aerospace reported a significant increase in second-quarter orders by 27% and revenue growth of 23%, reaching over $10 billion. The company raised its fiscal year 2025 guidance, expecting mid-teens revenue growth and operating profit in the range of $8.2 billion to $8.5 billion, with adjusted EPS projected between $5.60 to $5.80. For 2028, GE Aerospace anticipates operating profit to reach approximately $11.5 billion, with margins expanding to over 21% and free cash flow of at least $8.5 billion, reflecting strong double-digit compounded revenue growth driven by commercial services. The company highlighted improvements in the supply chain, with material input at priority supplier sites up 10% sequentially and CES services revenue increasing by nearly 30% year-over-year. Despite ongoing supply chain constraints, GE Aerospace expects pricing actions to offset inflationary pressures.

GE Aerospace Financial Statement Overview

Summary
GE Aerospace demonstrates strong financial performance with significant revenue growth, robust cash flow management, and a stable balance sheet. The company's low leverage and high return on equity are positive, though maintaining EBITDA margins and equity levels is advisable.
Income Statement
85
Very Positive
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
78
Positive
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
82
Very Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue38.70B35.35B29.14B56.47B75.83B
Gross Profit14.39B12.41B10.15B13.09B17.96B
EBITDA9.79B12.65B4.04B-1.54B12.95B
Net Income6.56B9.48B336.00M-6.34B5.70B
Balance Sheet
Total Assets123.14B163.04B188.85B198.87B253.45B
Cash, Cash Equivalents and Short-Term Investments14.60B22.67B23.42B28.07B43.95B
Total Debt19.27B21.76B26.15B38.03B78.10B
Total Liabilities103.58B134.47B153.94B157.26B216.38B
Stockholders Equity19.34B27.38B33.70B40.31B35.55B
Cash Flow
Free Cash Flow3.68B3.58B4.74B1.97B194.00M
Operating Cash Flow4.71B5.18B5.92B3.33B3.60B
Investing Cash Flow-1.67B3.98B2.27B21.31B16.64B
Financing Cash Flow-6.73B-8.61B-5.58B-45.18B-19.85B

GE Aerospace Technical Analysis

Technical Analysis Sentiment
Positive
Last Price271.59
Price Trends
50DMA
247.56
Positive
100DMA
222.24
Positive
200DMA
203.08
Positive
Market Momentum
MACD
6.53
Negative
RSI
68.96
Neutral
STOCH
73.94
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 271.59 is above the 20-day moving average (MA) of 257.31, above the 50-day MA of 247.56, and above the 200-day MA of 203.08, indicating a bullish trend. The MACD of 6.53 indicates Negative momentum. The RSI at 68.96 is Neutral, neither overbought nor oversold. The STOCH value of 73.94 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$284.21B36.7440.20%0.47%-32.80%69.39%
76
Outperform
$84.53B21.2817.91%1.86%11.85%16.12%
76
Outperform
$207.77B34.3810.13%1.64%15.44%164.00%
71
Outperform
$81.40B20.9026.50%1.49%-0.65%77.20%
64
Neutral
$98.18B23.6173.06%3.10%1.09%-35.50%
59
Neutral
$174.38B-162.23%-9.15%-406.76%
58
Neutral
HK$14.94B4.62-2.78%5.07%3.80%-54.55%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GE
GE Aerospace
271.59
102.87
60.97%
BA
Boeing
233.06
46.17
24.70%
GD
General Dynamics
314.02
29.58
10.40%
LMT
Lockheed Martin
421.17
-90.14
-17.63%
NOC
Northrop Grumman
569.74
97.73
20.71%
RTX
Raytheon Technologies
156.88
45.27
40.56%

GE Aerospace Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
GE Aerospace Secures $2 Billion in Notes Sale
Positive
Jul 24, 2025

On July 22, 2025, GE Aerospace entered into an underwriting agreement with major financial institutions for the issuance and sale of $2 billion in notes, split between 4.300% Notes due 2030 and 4.900% Notes due 2036. This financial move is part of the company’s strategic efforts to strengthen its market position and secure funding for future operations, potentially impacting stakeholders by enhancing the company’s financial stability.

The most recent analyst rating on (GE) stock is a Buy with a $198.00 price target. To see the full list of analyst forecasts on GE Aerospace stock, see the GE Stock Forecast page.

Shareholder MeetingsBusiness Operations and Strategy
GE Aerospace Shareholders Meeting Approves Key Proposals
Neutral
May 9, 2025

On May 6, 2025, GE Aerospace held its annual shareholders meeting where all company nominees for director were elected, the advisory vote on executive compensation was approved, and Deloitte & Touche LLP was ratified as the independent auditor for 2025. However, a shareholder proposal requesting a vote on severance payments was not approved. These decisions reflect the company’s strategic direction and governance priorities, impacting its operational focus and stakeholder engagement.

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.Date of analysis: Jul 25, 2025