GE Aerospace (GE), headquartered in Cincinnati, Ohio, is a major global manufacturer of engines and systems used in commercial, military, and business aviation. The company supports an installed base of approximately 49,000 commercial engines and 29,000 military engines, including engines on aircraft that are not currently in service. Its technologies are used by airlines, defense agencies, and corporate aviation customers worldwide.
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Company Snapshot
| Price | $299 | Category | Moderate | |
| Market Cap | $317B | Dividend | $1.44 | 0.51% |
| P/E Ratio | 40.4 | Analyst Avg | 1-Yr Target | $339 |
| Consensus EPS Estimate | 1Q | 2Q | 3Q | 4Q |
| 2026 | 1.60E | 1.82E | 1.89E | 1.62E |
| 2025 | 1.49A | 1.66A | 1.66A | 1.40E |
| 2024 | 0.82A | 1.20A | 1.15A | 1.32A |
*Aggressive/Moderate/Conservative labels describe broad business characteristics for educational purposes only. They are not risk ratings, investment guidance, or recommendations. A = Actual, E = Estimated. Market metrics such as beta, valuation multiples, and analyst estimates are widely referenced in financial research. Their relevance depends on an individual’s goals, time horizon, and risk tolerance. These figures are for informational purposes only and should not be interpreted as predictions or guidance.
Keys for Success
There are two businesses within GE Aerospace. The foundation of the business is the jet engines it builds. That business feeds into the company’s parts and services business, which effectively maintains the jet engines for airlines. This can be a powerful combination. Third-quarter 2025 adjusted earnings rose a huge 44% year over year, alongside an adjusted revenue advance of 26%.
The commercial side of the business is the larger of the company’s two divisions, with the other being focused on defense. Commercial services revenues advanced 28%. Internal shop visit revenue increased by 33%, with revenue from parts rising by approximately 25%. Equipment revenue grew 22%, with the sale of each new jet engine further expanding the installed base that supports the company’s annuity-like parts and services business.
Services and parts are tied to the actual use of the engines that are being maintained. Therefore, the amount of flight activity has a significant impact on GE Aerospace’s top and bottom lines. While the budget battle in Washington, D.C. had caused some turbulence in air travel, the company believes that air travel is likely to grow at a rate of 3% to 4% a year under normal conditions.
That has put a brighter spin on the company’s outlook for 2026. According to CFO Rahul Ghai, “the number of engines that need a shop visit is projected to be up double digits in ’26, just based on the number of cycles that they’ve already flown.” The industrial giant has already bumped up its 2025 earnings guidance. 2026 will likely see even more growth.
In 2025, paid dividends of $1.1 billion, representing a 52.6% increase. At the end of the third quarter of 2025, the company’s cash and equivalents totaled $12.5 billion. This implies that the company has sufficient cash to meet its short-term debt obligations.
Keys for Concern
GE Aerospace has been dealing with the adverse impacts of high sales and operating expenses. In the third quarter of 2025, its cost of sales increased 24.7% year-over-year to $7.76 billion. The company’s rising debt level is concerning. GE Aerospace is heavily reliant on a global supply chain, particularly in the face of shortages of critical materials essential for defense technologies.
Mark Notes
GE Aerospace (GE) is one of the original 12 companies on the Dow Jones Industrial Average. Market share has increased this cycle with 15.2% annual revenue growth over the last two years. GE’s performance is not a secret, and the price reflects a lot of good news, but the stock is a good long-term hold.
New to investing? These explanations may help:
• Understanding Earnings Season
• Risk Categories & Diversification
This article is for general informational and educational purposes only. It is not intended as financial advice, investment guidance, or a recommendation to buy or sell any security. The content reflects publicly available information and broad market commentary. Readers should conduct their own research and consult a licensed financial professional before making investment decisions.