GE Aerospace (GE) AI Stock Analysis

• Market Cap: $309.98B
• Dividend Yield: 0.48%
• Average Volume (3M): 4.64M
• Price to Earnings (P/E): 36.1
• 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): 1.57
• Shares Outstanding: 1,054,814,000
• 10 Day Avg. Volume: 6,071,629
• 30 Day Avg. Volume: 4,636,998
• 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: 1.03
• Enterprise Value/Revenue: 7.23
• Enterprise Value/Gross Profit: 19.13
• Enterprise Value/Ebitda: 27.73
• 1Y Price Target: $356.50
• Price Target Upside: 21.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 7.31
• Revenue Forecast (FY): $46.51B

• Rating: 68 Neutral
• Price Target: $322.00 ▲(9.57% Upside)

The score is driven primarily by strong financial performance and constructive forward guidance with robust backlog and cash generation. Offsetting factors are weaker near-term technicals (price below key moving averages), a rich valuation (high P/E and low yield), and execution/margin headwinds (GE9X losses, mix pressure, and inventory build).

Positive Factors

Backlog and Order Growth

A ~ $190B backlog and large order acceleration provide multi-year revenue visibility that supports sustained production scheduling, supplier commitments, and predictable aftermarket demand. This durable backlog underpins guidance, reduces cyclical exposure and aids long-term cash flow planning.

Aftermarket & MRO expansion

Expanding MRO capacity and improving turnaround times materially strengthen recurring aftermarket revenue and margins. Doubling LEAP internal capacity and dedicated MRO investment creates durable service footprint, enhances time-on-wing performance, and raises long-term resilience versus OE cyclicality.

Strong cash generation and conversion

High free cash flow growth and conversion above 100% generate durable financial flexibility to fund R&D, MRO investments, capex, and debt servicing. Consistent FCF supports multi-year targets, optionality for program remediation, and lowers execution risk on strategic investments.

Negative Factors

GE9X program losses

Program-level losses that grow with ramp present a persistent drag on operating profit and margins until unit costs decline or pricing shifts. As shipments increase, incremental GE9X losses can materially offset CES profitability and compress returns for several quarters to years.

Margin pressure from mix and OE growth

Structural mix shift toward higher OEM shipments and a lower spare-engine ratio reduces aftermarket margin contribution, weighing consolidated margins. Combined with elevated R&D and investment spend, this mix dynamic can keep margin expansion constrained over the medium term.

Relatively low equity ratio / leverage reliance

Moderate leverage and a low equity ratio imply greater reliance on debt to fund growth and capex. In a rising-rate or industry stress scenario this reduces capital flexibility, increases interest cost sensitivity and can constrain strategic spending or accelerate deleveraging demands.

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 profitability and operating efficiency (healthy EBIT/EBITDA margins) with solid free-cash-flow growth support a high score. Balance-sheet leverage is moderate, but the relatively low equity ratio is a risk factor.

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	22.72B	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: Negative
• Last Price: 293.87
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 293.87 is below the 20-day moving average (MA) of 316.50, below the 50-day MA of 304.47, and above the 200-day MA of 270.50, indicating a neutral trend. The MACD of 0.45 indicates Positive momentum. The RSI at 39.06 is Neutral, neither overbought nor oversold. The STOCH value of 17.87 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$98.13B	23.54	17.78%	1.73%	11.86%	17.39%
NOC	76 Outperform	$96.04B	24.16	26.15%	1.55%	-0.14%	72.35%
RTX	74 Outperform	$262.70B	40.23	10.49%	1.44%	8.79%	39.63%
LMT	70 Outperform	$136.71B	32.98	62.78%	2.77%	2.88%	-35.15%
GE	68 Neutral	$309.98B	36.10	45.24%	0.48%	-19.21%	31.83%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BA	54 Neutral	$197.45B	-18.42	―	―	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.