GE Aerospace is positioned for sustained growth driven by rising commercial air travel demand, increased global defense budgets, and its strong engine technology portfolio. The company’s strategic focus on next-generation propulsion systems and supply chain resilience supports a bullish outlook.
- Engine backlog exceeds $120 billion, driven by commercial aviation recovery
- F414 engine supports F/A-18E/F and F-35B programs, enhancing defense relevance
- Service revenue now represents 40% of total revenue, improving margins
- Additive manufacturing cuts maintenance costs by up to 20% for operators
- Forward P/E of 14.8x below sector average of 18.2x
- 78% of analysts maintain a buy rating on the stock
GE Aerospace is advancing as a top-tier industrial play amid structural shifts in global aviation and defense markets. With commercial aircraft deliveries expected to grow at a 4.3% CAGR through 2035, GE’s engine backlog—now exceeding $120 billion—positions it to capture long-term revenue. The company's CFM International joint venture, which powers over 70% of the global narrowbody fleet, remains central to its commercial aviation dominance. Defense spending is also a key tailwind. The U.S. Department of Defense’s 2026 budget request includes a $860 billion allocation, with a focus on advanced propulsion systems for next-generation fighters and unmanned platforms. GE’s F414 engine powers the F/A-18E/F Super Hornet and is under consideration for the F-35B variant, reinforcing its critical role in military modernization efforts. Recent investments in additive manufacturing and digital twin technology have improved engine reliability and reduced maintenance costs by up to 20% for customers. These innovations, combined with a growing service revenue segment—now accounting for 40% of total revenue—enhance profit margins and customer retention. The stock's forward P/E ratio of 14.8x is below the aerospace and defense sector average of 18.2x, suggesting potential undervaluation. With a dividend yield of 2.3% and a buy rating from 78% of analysts, GE Aerospace is drawing interest from both income-focused and growth-oriented investors.