Strength in Commercial Engines Unit Aids GE Aerospace: Can It Sustain?

The strongest driver of GE Aerospace’s GE business at the moment is the Commercial Engines & Services segment. In fourth-quarter 2025, organic revenues from the segment increased 24% year over year, constituting more than 75% of its business. Also, in the quarter, the segment’s orders witnessed an increase of 76% year over year, which totaled $22.8 billion.

A growing installed base and higher utilization of engine platforms, particularly in commercial & defense sectors, have set the stage for the company’s long-term growth. GE continues to experience strong orders for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities.

Some of the notable orders secured by the company include more than 500 engine wins at the Dubai Airshow, including deals from flydubai and Riyadh Air. It clinched an order from Cathay Pacific to power their latest Boeing 777 9 aircraft with GE9X engines.

GE Aerospace also inked a deal with Qatar Airways to supply more than 400 GE9X and GEnx engines. It represents the largest widebody engine deal in GE’s history. This apart, the company secured a deal from International Airlines Group to provide GEnx engines for British Airways’ 32 new Boeing 787 aircraft.

GE's Peers in the Aerospace Market

Among its major peers, Howmet Aerospace Inc. HWM is benefiting from persistent strength in the commercial aerospace market. Revenues from Howmet’s commercial aerospace market increased 13% year over year (exceeding $1.1 billion) in the fourth quarter of 2025, constituting 53% of its business. Also, in the first, second and third quarters, revenues from the market increased 9%, 8% and 15% year over year, respectively.

Its another peer, RTX Corporation RTX is benefiting from strength in the commercial aerospace market, with growth in both aftermarket and OEM verticals. RTX reported 12.1% sales growth in the fourth quarter, driven by solid momentum in the Collins Aerospace and Pratt & Whitney segments. Rising aircraft utilization and demand for sustainable technologies are supporting RTX Corp.’s growth.

GE's Price Performance, Valuation and Estimates

Shares of GE Aerospace have surged 72.1% in the past year compared with the industry’s growth of 37.2%.

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From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 37.23X, above the industry’s average of 31.07X. GE Aerospace carries a Value Score of D.

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The Zacks Consensus Estimate for GE’s 2026 earnings has inched down over the past 60 days.

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The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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GE Aerospace (GE): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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