One-glance verdict
Overvalued
$148.12 our estimate vs market $345.73
Wall Street consensus: $384.24 (159.4% higher than our fair-value estimate)
133% above our estimate, beyond the bull case
Fundamentals snapshot
GE Aerospace
GE · NYQ · Industrials · Aerospace & Defense
Current price
$345.73
52-week range
$254.66 - $382.97
Market cap
$361.23B
Balance sheet
Watch
10.30x Adequate
Net debt $10.74B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 10.4% last year.
- Reward Returns 45.4% on equity, ahead of 50% of its peers.
- Reward Free cash flow was positive in 7/10 years.
- Risk Net debt grew 196.9% over 3 years.
What this company does
GE Aerospace
GE Aerospace builds the powerful jet engines used on airplanes for both commercial airlines and the military. The company makes a large portion of its money not just from the initial engine sale, but from long-term service contracts and selling spare parts, which creates predictable recurring revenue (income that comes in regularly, much like a subscription). This means GE can earn money from a single engine for decades after it is first sold, providing a steady business.
How the company got here
GE Aerospace is the current form of the original General Electric, a company co-founded by Thomas Edison in 1892 that was once a sprawling industrial conglomerate making everything from lightbulbs to appliances. The company entered the aviation industry during World War I by developing technology to help planes fly at higher altitudes. In early 2024, after more than a century of operating in many different industries, General Electric split into three independent public companies, spinning off its healthcare and energy businesses to focus solely on aviation. This strategic shift left GE Aerospace as a company dedicated to designing, manufacturing, and servicing aircraft engines.
What it actually does
GE Aerospace primarily builds and services engines for airplanes. If you've ever flown on a commercial airplane, there's a good chance its engines were made by GE or one of its partners; roughly three out of every four commercial flights are powered by their technology. Beyond just selling new engines, a very large and profitable part of their business involves long-term service agreements to maintain, repair, and provide spare parts for those engines over their entire lifespan, which can be 25 years or more. They provide these engines and services for both commercial airliners and military aircraft.
Commercial Engines & Services
This is GE Aerospace's largest business segment, making up about three-quarters of its revenue (the money it brings in from sales). It designs, builds, and sells jet engines for commercial aircraft, which includes everything from smaller regional jets to the largest wide-body planes used for international flights. The customers are airlines and aircraft manufacturers like Boeing and Airbus. A huge and very profitable part of this segment is providing aftermarket services, which means handling all the maintenance, repairs, and spare parts an engine needs over its long life.
Defense & Propulsion Technologies
This segment focuses on the military market and accounts for the remaining quarter of the company's revenue. It builds and services engines for a wide variety of military aircraft, including fighter jets, helicopters, bombers, and transport planes for governments around the world. The primary customer is the U.S. Department of Defense and its allied nations. This part of the business also develops advanced technologies for the future of flight, such as new propulsion systems and aircraft components.
What management is betting on now
The company's main focus is on increasing the production of its newer, more fuel-efficient engines, like the LEAP engine, to meet high demand from airlines. At the same time, they are heavily investing in expanding their capacity to service their massive and growing fleet of engines already in use, as this is a major source of profitability. Management is also dedicated to using its internal operating system, called FLIGHT DECK, to make its manufacturing and supply chain (the network of companies that provide parts and materials) more efficient. Looking further ahead, GE Aerospace is investing billions in research and development to invent the next generation of flight technology, with a focus on sustainability and even more efficient engines.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$1.24B
FY2024 Q4
$1.03B
FY2025 Q1
$1.30B
FY2025 Q2
$1.92B
FY2025 Q3
$2.19B
FY2025 Q4
$1.85B
FY2026 Q1
$1.49B
FY2026 Q2
$2.86B
Revenue
$13.35B
Net income
$2.37B
Diluted EPS
2.26
Operating cash flow
$3.19B
Free cash flow
$2.86B
Fetching…
Sources
Revenue
$12.39B
Net income
$1.90B
Diluted EPS
1.81
Operating cash flow
$1.82B
Free cash flow
$1.49B
Fetching…
Sources
Revenue
$12.72B
Net income
$2.54B
Diluted EPS
2.40
Operating cash flow
$2.28B
Free cash flow
$1.85B
Fetching…
Sources
Revenue
$12.18B
Net income
$2.16B
Diluted EPS
2.02
Operating cash flow
$2.50B
Free cash flow
$2.19B
Fetching…
Sources
Revenue
$11.02B
Net income
$2.03B
Diluted EPS
1.89
Operating cash flow
$2.25B
Free cash flow
$1.92B
Fetching…
Sources
Revenue
$9.94B
Net income
$1.98B
Diluted EPS
1.83
Operating cash flow
$1.51B
Free cash flow
$1.30B
Fetching…
Sources
Revenue
$10.81B
Net income
$1.90B
Diluted EPS
1.75
Operating cash flow
$1.30B
Free cash flow
$1.03B
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Sources
Revenue
$9.84B
Net income
$1.85B
Diluted EPS
1.70
Operating cash flow
$1.51B
Free cash flow
$1.24B
Fetching…
Sources
Is it cheap or expensive?
Fair value $148.12 vs current price $345.73
Wall Street consensus is the average analyst price target: $384.24 (159.4% higher than our fair-value estimate).
Our most-likely fair value is $148.12 a share — about 57.2% below today's price of $345.73, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $10.7B. Interest coverage 10.3x.
Net debt
$10.74B
Interest coverage
10.30x
GE Aerospace's profit covers its interest bill about 10.3 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
GE
BASELINE
GE Aerospace
Total debt $21.32B Interest coverage 10.30x This is the baseline the peer rows are being compared against.
Total debt $38.93B Interest coverage 5.07x -51% vs GE Carries about 2.0x less debt cushion than GE.
Total debt $49.61B Interest coverage -1.95x -100% vs GE This peer has almost no interest-payment cushion compared with GE.
Total debt $20.70B Interest coverage 6.92x -33% vs GE Carries about 1.5x less debt cushion than GE.
Total debt $17.57B Interest coverage 6.44x -37% vs GE Carries about 1.6x less debt cushion than GE.
Total debt $37.75B Interest coverage 4.89x -53% vs GE Carries about 2.1x less debt cushion than GE.
What you should know
The case for and against GE
3 Rewards
1 Risk
Rewards
-
Revenue grew 10.4% last year.
-
Returns 45.4% on equity, ahead of 50% of its peers.
-
Free cash flow was positive in 7/10 years.
Risks
-
Net debt grew 196.9% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
44.84x
Forward P/E
39.59x
P/B
19.98x
P/S
7.48x
EV/EBITDA
35.06x
PEG ratio
8.67x
Profitability
How much profit each dollar creates
Gross margin
31.1%
Operating margin
20.2%
Net margin
17.9%
ROE
45.4%
ROA
4.9%
Health
Liquidity and balance-sheet strength
Debt / equity
1.17x
Current ratio
1.01x
Quick ratio
0.65x
Total debt
$21.32B
Total cash
$10.58B
Growth
How the business has been compounding
Revenue TTM
$50.64B
Revenue 5Y CAGR
-5.1%
EPS TTM
7.71
EPS 5Y CAGR
446.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$9.80B
Free CF TTM
$7.26B
FCF margin
14.3%
Dividend
Shareholder payout
Yield
0.5%
Payout ratio
19.2%
Last ex-div date
2026-07-06