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GE Benefits From Robust Performance in Commercial Engines: Will the Growth Continue?

GE Benefits From Robust Performance in Commercial Engines: Will the Growth Continue?

101 finance101 finance2026/03/09 15:49
By:101 finance

GE Aerospace: Commercial Engines & Services Drive Growth

GE Aerospace has experienced significant progress in its Commercial Engines & Services division. In the fourth quarter of 2025, organic revenue from this segment jumped 24% compared to the previous year, now making up over three-quarters of the company’s total business. Orders for the segment also soared by 76% year over year, reaching $22.8 billion.

The company’s expanding installed engine base and increased usage, especially within commercial and defense aviation, are fueling its long-term prospects. High demand for LEAP, GEnx, and GE9X engines and related services—supported by rising air travel, fleet upgrades, and expansion—continues to benefit this segment.

In 2025, GE Aerospace secured a $5 billion agreement with the U.S. Air Force to provide F110 engines, components, and support as part of a Foreign Military Sales program. Additionally, the company was awarded an Indefinite Delivery Indefinite Quantity (IDIQ) contract from the U.S. Army to supply F110 engines for F-15 and F-16 aircraft operated by allied nations. GE also achieved a successful test of the T901 engine on a Black Hawk helicopter and completed the design review for the new XA102 engine.

Looking ahead, GE Aerospace is well-positioned to sustain robust demand, with both its commercial and military programs benefiting from strong air travel trends and healthy defense spending.

Competitive Landscape in Aerospace

Among GE’s main competitors, Howmet Aerospace Inc. has also capitalized on the strength of the commercial aerospace sector. In the fourth quarter of 2025, Howmet’s commercial aerospace revenue rose 13% year over year, surpassing $1.1 billion and accounting for 53% of its total revenue. The company also reported year-over-year commercial aerospace revenue growth of 9%, 8%, and 15% in the first three quarters, respectively.

Another industry peer, RTX Corporation, is seeing gains from both aftermarket and original equipment manufacturer (OEM) segments in commercial aerospace. RTX posted a 12.1% increase in sales during the fourth quarter, driven by strong performance in its Collins Aerospace and Pratt & Whitney divisions. The company’s growth is further supported by higher aircraft utilization and a focus on sustainable aviation technologies.

GE Aerospace: Stock Performance and Valuation

Over the past year, GE Aerospace shares have climbed 68.2%, outpacing the aerospace and defense industry’s 37.4% gain.

Zacks Investment Research

Image Source: Zacks Investment Research

From a valuation perspective, GE is currently trading at a forward price-to-earnings ratio of 42.18, which is higher than the industry average of 33.30. The company holds a Value Score of F from Zacks Investment Research.

Zacks Investment Research

Image Source: Zacks Investment Research

Analyst estimates for GE’s earnings in 2026 and 2027 have been trending upward over the last two months.

Zacks Investment Research

Image Source: Zacks Investment Research

GE Aerospace currently holds a Zacks Rank #2 (Buy).

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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