Business Description
Based in Evendale, Ohio, GE Aerospace is a prominent American aviation enterprise with roots tracing back to its 1878 founding by Thomas Alva Edison. The company specializes in manufacturing and supplying jet and turboprop engines, along with integrated systems, for an extensive range of aircraft, including those in commercial, military, business, and general aviation use. Its robust brand lineup features Avio Aero, Unison, GE Additive, and Dowty Propellers. GE Aerospace organizes its activities into two core segments: Commercial Engines & Services, and Defense & Propulsion Technologies. The Commercial Engines & Services division oversees the design, development, production, and maintenance of jet engines for commercial airframes, business aviation, and aeroderivative applications. Meanwhile, the Defense & Propulsion Technologies segment is dedicated to providing vital engines and critical systems for defense-related aerospace needs.
Business History
Generated: Jun 24, 2026 3:03amPrice Overview
Last updated: Jun 24, 2026 3:00am (3d ago)Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 8.16
Total Equity: $18.68B
Shares: 1,067,000,000
Total Debt: $20.49B
Cash: $12.39B
EBITDA: $12.06B
Total Debt: $20.49B
Cash: $12.39B
Revenue: $45.86B
Revenue: $45.86B
Revenue: $45.86B
Total Equity: $18.68B
Tax Rate: 14.1%
Equity: $18.68B
Total Debt: $20.49B
Cash: $12.39B
Current Liabilities: $38.98B
Long-Term Debt: $18.81B
Total Debt: $20.49B
Total Equity: $18.68B
Shares: 1,067,000,000
Shares: 1,067,000,000
CapEx: -$1.27B
Shares: 1,067,000,000
Stock Price: $356.47
Net Income: $8.70B
Industry Benchmarks
Advanced Analysis Forensic deep-dive · three lenses
Since the 2023-2024 reshape into a pure-play aerospace business, the operating profile has stepped up materially: gross margin expanded from 23.2% (2021) to 36.8% (2025), operating margin from 1.9% to 19.1%, and revenue rebased to $45.9B with FCF doubling year-over-year to $7.26B in 2025. Earnings quality reads clean - accruals at -0.8% of assets, OCF/NI of 3.86x, Beneish M of -2.19, and Altman Z of 3.54 - consistent with a mature industrial earning real cash, not paper profits. Net income of $8.7B against $7.26B FCF is a believable conversion ratio for a business with heavy aftermarket service economics.
Verify before trusting this (6)
- Composition of 2025 FCF - how much came from customer advances, LTSA billings, or working-capital release versus underlying earnings
- Customer/program concentration: CFM/LEAP exposure and Boeing/Airbus build-rate sensitivity
- Aftermarket vs OEM revenue mix and services margin disclosure
- Pension and discontinued-operations liabilities post-GE Vernova/HealthCare spins
- Debt maturity ladder and any remaining legacy GE Capital obligations
- LEAP durability/time-on-wing issues and warranty reserve adequacy
At $356.47 and a $372B market cap, GE Aerospace trades like a premium pure-play aero franchise that the market fully understands. On consensus, GE earns roughly $5.5-6 of EPS in 2025 scaling toward $7-8 by 2026-27, which puts the stock at ~60x trailing and ~45-50x forward - well above the S&P and above large-cap A&D peers (RTX ~22x, LMT ~17x). EV/EBITDA in the high-20s and an FCF yield near 2-2.5% similarly say 'priced for the bull case.' The e2e synthesis flagging 'High Conviction Required' is consistent with that: methods are likely scattered and the high marks lean on heroic aftermarket growth assumptions.
Verify before trusting this (5)
- LEAP shop-visit cadence and services margin trajectory in next 10-Q
- 2026 guidance for commercial services revenue growth and segment margin
- Boeing 737 MAX and 787 build rates - direct read-through to OE deliveries
- Defense segment margin recovery pace
- Capital return mix - buyback pace at these multiples is value-destructive if sustained
GE Aerospace sits inside an active, moderate-intensity 'aerospace supercycle' narrative that the tape is still respecting: commercial aviation normalization plus rising defense budgets, anchored by sticky aftermarket services. News flow over the last 72h is predominantly constructive on the parent (capital returns piece, '333% three-year surge' framing, mega-cap inclusion) and on the sibling GEHC (RBC initiation, AI-imaging cycle), which keeps the family halo positive. The bear angle (electric/hydrogen propulsion, Boeing MAX exposure) is dormant in current flow, so narrative durability is doing work here.
Verify before trusting this (4)
- Whether VIX pushes above 22 and risk-off accelerates - high-beta industrials would feel it
- Any Boeing MAX production headline that re-injects the bear case into flow
- Sustained analyst target revisions above $380 to confirm the upgrade cycle is alive
- Rotation out of the multi-year industrial winners as 'too late to buy' framing spreads
Deep Analysis
Pre-flight intelligence scans the company first, then routes to the right analytical methods.
Income Statement (Annual)
Last updated: Jun 24, 2026 3:04am (3d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $56.5B | $29.1B | $35.3B | $38.7B | $45.9B |
| Cost of Revenue | $43.4B | $19.0B | $22.9B | $24.3B | $29.0B |
| Gross Profit | $13.1B | $10.2B | $12.4B | $14.4B | $16.9B |
| Operating Expenses | $12.0B | $6.6B | $7.7B | $7.6B | $8.1B |
| Operating Income | $1.1B | $3.6B | $4.7B | $6.8B | $8.8B |
| Net Income | -$6.3B | $336.0M | $9.5B | $6.6B | $8.7B |
| EBITDA | -$1.5B | $4.0B | $12.6B | $9.8B | $12.1B |
| EPS | $-6.16 | $0.04 | $8.44 | $6.04 | $8.16 |
| EPS (Diluted) | — | — | — | — | — |
Balance Sheet (Annual)
Last updated: Jun 24, 2026 3:00am (3d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $15.8B | $15.8B | $15.2B | $13.6B | $12.4B |
| Total Current Assets | $66.3B | $58.4B | $42.6B | $37.6B | $40.6B |
| Total Assets | $198.9B | $188.9B | $176.1B | $125.8B | $130.2B |
| Current Liabilities | $52.0B | $49.4B | $32.1B | $34.4B | $39.0B |
| Long-Term Debt | $30.8B | $20.3B | $19.4B | $17.2B | $18.8B |
| Total Liabilities | $157.1B | $153.9B | $147.5B | $106.2B | $111.3B |
| Total Equity | $40.3B | $33.7B | $27.4B | $19.3B | $18.7B |
| Retained Earnings | $85.1B | $83.0B | $86.6B | $80.5B | $87.7B |
Cash Flow (Annual)
Last updated: Jun 23, 2026 3:04am (4d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $3.5B | $5.9B | $5.2B | $4.7B | $8.5B |
| Capital Expenditure | -$1.1B | -$1.2B | -$1.6B | -$1.0B | -$1.3B |
| Free Cash Flow | $2.4B | $4.7B | $3.6B | $3.7B | $7.3B |
| Acquisitions (net) | $2.6B | $4.7B | $8.6B | $5.6B | -$360.0M |
| Debt Repayment | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | -$107.0M | -$1.0B | -$1.2B | -$5.8B | -$7.6B |
| Net Change in Cash | -$20.7B | $40.0M | $663.0M | -$3.9B | -$1.1B |
Analyst Estimates (Annual)
Last updated: Jun 24, 2026 3:00am (3d ago)| Metric | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|
| Revenue |
$53.2B $51.8B – $54.2B
|
$58.2B $58.1B – $58.2B
|
$62.1B $60.3B – $64.5B
|
$65.9B $64.0B – $68.4B
|
| EBITDA |
$10.5B $10.2B – $10.7B
|
$11.5B $11.4B – $11.5B
|
$12.2B $11.9B – $12.7B
|
$13.0B $12.6B – $13.5B
|
| Net Income |
$9.7B $8.9B – $9.8B
|
$10.6B $9.0B – $11.9B
|
$11.6B $11.2B – $12.2B
|
$12.9B $12.5B – $13.6B
|
| EPS | — | — | — | — |
Growth Trends (YoY %)
Last updated: Jun 24, 2026 3:04am (3d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | -48.4% | +21.3% | +9.5% | +18.5% |
| Gross Profit Growth | -22.5% | +22.2% | +16.0% | +17.3% |
| Operating Income Growth | +239.9% | +31.2% | +43.3% | +29.7% |
| Net Income Growth | +105.3% | +2,722.0% | -30.9% | +32.8% |
| EBITDA Growth | +361.8% | +212.7% | -22.6% | +23.2% |
Insider Trading (Recent)
Last updated: Jun 24, 2026 3:04am (3d ago)All SEC Form 4 codes
- P Purchase
- Open-market or private purchase of shares.
- S Sale
- Open-market or private sale of shares.
- A Award / grant
- Grant or award of securities (RSUs, options, etc.) under Rule 16b-3.
- D Return to issuer
- Securities disposed back to the company under Rule 16b-3.
- F In-kind (tax)
- Shares withheld or delivered to pay the option-exercise price or tax — not an open-market sale.
- I Discretionary
- Discretionary transaction under an employee plan — Rule 16b-3(f).
- M Option exercise
- Exercise or conversion of a derivative (option/RSU) into shares — exempt.
- C Conversion
- Conversion of a derivative security into the underlying shares.
- E Short expiration
- Expiration of a short derivative position.
- H Long expiration
- Expiration or cancellation of a long derivative position with value received.
- O OTM exercise
- Exercise of an out-of-the-money derivative.
- X ITM exercise
- Exercise of an in-the-money or at-the-money derivative.
- G Gift
- Bona fide gift of securities.
- L Small acquisition
- Small acquisition under Rule 16a-6.
- W Inheritance
- Acquisition or disposition by will or the laws of descent.
- Z Voting trust
- Deposit into or withdrawal from a voting trust.
- J Other
- Other acquisition or disposition (explained in a Form 4 footnote).
- K Equity swap
- Transaction in an equity swap or similar instrument.
- U Tender / buyout
- Disposition via tender of shares in a change-of-control transaction.
Compensation-plan codes (A, D, F, M) are routine and rarely directional. Open-market P (buy) and S (sale) carry the most signal.
| Date | Insider | Type | Shares | Price | Value |
|---|---|---|---|---|---|
| 2026-06-24 | Althoff Judson | A-Award | 517.00 | $0.00 | $0 |
| 2026-06-24 | Althoff Judson | 0.00 | $0.00 | $0 | |
| 2026-05-05 | McDew Darren W | A-Award | 678.00 | $0.00 | $0 |
| 2026-05-05 | LESJAK CATHERINE A | A-Award | 678.00 | $0.00 | $0 |
| 2026-05-05 | HORTON THOMAS W | A-Award | 678.00 | $0.00 | $0 |
| 2026-05-05 | Goren Isabella D | A-Award | 678.00 | $0.00 | $0 |
| 2026-05-05 | Enders Thomas | A-Award | 678.00 | $0.00 | $0 |
| 2026-05-05 | BUSH WESLEY G | A-Award | 678.00 | $0.00 | $0 |
| 2026-05-05 | Billson Margaret S | A-Award | 678.00 | $0.00 | $0 |
| 2026-05-05 | Bazin Sebastien | A-Award | 678.00 | $0.00 | $0 |
| 2026-05-01 | Procacci Riccardo | M-Exempt | 966.00 | $0.00 | $0 |
| 2026-05-01 | Procacci Riccardo | F-InKind | 416.00 | $286.51 | $119,188 |
| 2026-05-01 | Procacci Riccardo | M-Exempt | 966.00 | $0.00 | $0 |
| 2026-05-01 | Phillips John R, III | M-Exempt | 2,255.00 | $0.00 | $0 |
| 2026-05-01 | Phillips John R, III | F-InKind | 1,109.00 | $286.51 | $317,740 |
| 2026-05-01 | Phillips John R, III | M-Exempt | 2,255.00 | $0.00 | $0 |
| 2026-05-01 | Meisner Christian | M-Exempt | 2,255.00 | $0.00 | $0 |
| 2026-05-01 | Meisner Christian | F-InKind | 1,045.00 | $286.51 | $299,403 |
| 2026-05-01 | Meisner Christian | M-Exempt | 2,255.00 | $0.00 | $0 |
| 2026-05-01 | Gowder Amy L | M-Exempt | 966.00 | $0.00 | $0 |
Dividend History (Last 20)
Last updated: Jun 20, 2026 5:08am (7d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2026-03-09 | $0.47 | 2026-02-06 | 2026-03-09 | 2026-04-27 |
| 2025-12-29 | $0.36 | 2025-12-04 | 2025-12-29 | 2026-01-26 |
| 2025-09-29 | $0.36 | 2025-09-18 | 2025-09-29 | 2025-10-27 |
| 2025-07-07 | $0.36 | 2025-06-27 | 2025-07-07 | 2025-07-25 |
| 2025-03-10 | $0.36 | 2025-02-14 | 2025-03-10 | 2025-04-25 |
| 2024-12-27 | $0.28 | 2024-12-13 | 2024-12-27 | 2025-01-27 |
| 2024-09-26 | $0.28 | 2024-09-13 | 2024-09-26 | 2024-10-25 |
| 2024-07-11 | $0.28 | 2024-06-20 | 2024-07-11 | 2024-07-25 |
| 2024-04-12 | $0.28 | 2024-04-05 | 2024-04-15 | 2024-04-25 |
| 2023-12-27 | $0.08 | 2023-12-15 | 2023-12-28 | 2024-01-25 |
| 2023-09-25 | $0.08 | 2023-09-08 | 2023-09-26 | 2023-10-25 |
| 2023-07-10 | $0.08 | 2023-06-30 | 2023-07-11 | 2023-07-25 |
| 2023-03-06 | $0.08 | 2023-02-10 | 2023-03-07 | 2023-04-25 |
| 2022-12-14 | $0.08 | 2022-11-30 | 2022-12-15 | 2023-01-25 |
| 2022-09-26 | $0.08 | 2022-09-09 | 2022-09-27 | 2022-10-25 |
| 2022-06-27 | $0.08 | 2022-06-17 | 2022-06-28 | 2022-07-25 |
| 2022-03-07 | $0.08 | 2022-02-11 | 2022-03-08 | 2022-04-25 |
| 2021-12-20 | $0.08 | 2021-12-10 | 2021-12-21 | 2022-01-25 |
| 2021-09-24 | $0.08 | 2021-09-10 | 2021-09-27 | 2021-10-25 |
| 2021-06-25 | $0.01 | 2021-06-19 | 2021-06-28 | 2021-07-26 |
Narrative Economics
market-narrative step).
Delvantic AI Findings
Looking at the raw quarterly trajectory first: revenue ran $9.09B → $9.84B → $10.81B → $9.93B → $11.02B → $12.22B → $12.72B → $12.39B. The latest print (Mar 2026) is the first sequential decline in five quarters, and net income dropped from $2.54B to $1.94B — margin compressed from 20.0% to 15.6%, a 440bp hit in one quarter. That is not a rounding error on a $372B market cap trading at 42.7x TTM earnings. The "recent_earnings_yoy: 32.8%" headline is true but backwards-looking against an easy Q1'25 comp; the sequential story is deceleration into margin compression. Annual NI of $8.70B against a $372B cap is a 2.3% earnings yield with a 0.44% dividend — you are paying bond-like yield for an industrial cyclical at peak-cycle margins.
Where I disagree with the prior models: the synthesis "High Conviction Required" and the Market Forces "Neutral" reads are too soft. At 42.7x TTM earnings, 17.6x P/B, and 31.7x EV/EBITDA, this is priced like a software compounder, not an aerospace OEM with a 19% operating margin that just printed a margin reversal. The narrative layer correctly flags "anchored / moderate" but understates the asymmetry: if Q1'26's 15.6% margin is the new run-rate rather than a one-off, normalized NI is closer to $7.5-8B, and a generous 25x multiple (still rich for A&D) gets you to $185-200, not $356. The bull story leans on LEAP aftermarket compounding, which is real, but CFM is a 50/50 JV with Safran — GE doesn't capture the full economics the multiple implies. The pre-flight model's "~25x P/E" math is wrong; it's 42.7x TTM, and on the most recent annualized quarter ($7.76B NI run-rate) it's 48x.
The contrarian case the models underweight: FCF CAGR of 42.4% with earnings CAGR of -4.2% over the lookback is a red flag, not a feature — that gap typically means working capital tailwinds (customer advances on a fat backlog), not durable cash generation. FCF Quality is flagged "Weak" and then everyone moves on. Operating CF of $8.54B against $8.70B NI is fine on its face, but with backlog-funded advances normalizing as Boeing/Airbus deliveries catch up, FCF conversion likely compresses. Add in: Boeing 737 MAX production rate is still constrained, which throttles LEAP-1B deliveries (highest-margin new engines); supply chain inflation is showing up in the Q1 margin print; and the long-tail electric/hydrogen disruption isn't priced because it's 15+ years out — fair, but it caps terminal multiple expansion. Insider data is uninformative — all routine awards and tax-withholding F-InKind, no open-market buying or selling of signal value.
Data quality caveats: balance sheet is missing total debt and total equity, which is a serious gap for a company that emerged from a conglomerate spin with complex legacy liabilities (pension, insurance run-off at GE's former financial arm). ROE of 46.4% on P/B of 17.6 implies book equity around $21B — tiny relative to $372B cap, meaning any goodwill impairment or pension remeasurement moves the needle. The 2023 NI of $9.48B vs 2024 NI of $6.56B drop reflects spin-related accounting noise, so the "earnings CAGR -4.2%" is partially artifact — but that cuts both ways: it means we don't have a clean multi-year earnings track record to underwrite a 42x multiple either. I dissent from the synthesis's polite "High Conviction Required" framing and side closer to Market Forces' 15-25% downside, but I'd widen that band. Fair value on normalized $8-9B NI at a 28-30x peak-quality A&D multiple (generous, in line with TDG) is $240-270. The Q1'26 margin print is the tell; if Q2 confirms 15-17% net margin as the new normal, this re-rates hard. If it bounces back to 19-20%, the bulls get another leg. Either way, $356 demands you underwrite the best case.
GPT Critique
In my independent analysis of GE Aerospace, several key elements stand out from the raw data. The company has demonstrated impressive revenue growth, with a recent 18.5% year-over-year increase, leading to a 13.9% CAGR over the past few years. However, the sequential decline in revenue from $12.72 billion to $12.39 billion in the first quarter of 2026, coupled with a significant margin contraction from 20% to 15.6%, raises concerns about sustainability at its current valuation. Despite a robust free cash flow CAGR of 42.4%, the earnings CAGR is negative at -4.2%, indicating potential underlying issues with profitability and cost management. These figures suggest that while GE Aerospace is capitalizing on mid-term cyclical tailwinds, there are emerging risks that could impact future performance.
I agree with Claude Opus that the valuation appears stretched, particularly at the current P/E ratio of 42.7x TTM earnings. Opus rightly points out that this multiple is more akin to a high-growth tech company than an industrial cyclical, especially in light of the recent margin compression. The concern about the elevated valuation is compounded by the company's reliance on the LEAP engine's aftermarket growth, which, while strong, does not fully account for the risks associated with its joint venture structure with Safran.
Where I diverge from Opus is in the interpretation of the market's pricing strategy. While Opus sees the "High Conviction Required" as too lenient, I believe it underscores the necessity for investors to weigh both the potential for sustained aftermarket growth and the margin volatility inherent in aerospace. The market's neutral stance on forces suggests that while the company has a strong moat, the inherent risks associated with supply chain issues and technological disruptions are not fully priced in. The narrative around GE Aerospace as a steady compounder is credible, yet the challenges posed by electric and hydrogen propulsion technology could pressure long-term valuations.
A careful skeptic might argue that both my analysis and Opus's overlook the potential for strategic pivots or industry shifts that could alter the competitive landscape. For instance, any unexpected advancements in engine efficiency or significant defense contract wins could reignite growth and justify higher multiples. Additionally, the lack of debt and equity data introduces uncertainty in balance sheet strength, which could either conceal hidden risks or understate financial stability.