GE Aerospace's Strategic Rebalancing Amid Institutional Buy-In: A New Era of Industrial Resilience

In 2025, GE Aerospace (GE) has emerged as a focal point for institutional investors, with top wealth advisors and asset managers aggressively increasing their stakes in the company. This surge in institutional buying—led by Sax Wealth Advisors LLC (19.2% stake increase) and POM Investment Strategies LLC (1,078.6% surge)—signals a profound shift in market sentiment. While much of the financial world remains fixated on speculative tech stocks, these heavyweights are betting on a cyclical industrial recovery and GE's long-term operational turnaround under new leadership.

Institutional Confidence: A Contrarian Signal

The institutional ownership of GE now stands at 74.77%, with major players like Strategies Wealth Advisors LLC, Brighton Jones LLC, and Revolve Wealth Partners LLC all expanding their positions. This collective action reflects a strategic rebalancing by investors who see GE as a “buy the dip” opportunity in a sector poised for growth. The aerospace industry is navigating a cyclical inflection point: global air travel is rebounding, and GE's $153.8 billion backlog ensures a stable revenue runway.

Financial metrics further validate this optimism. GE reported Q1 2025 earnings per share (EPS) of $1.66, surpassing estimates of $1.43, while revenue hit $10.15 billion. The company's $1.29 billion R&D investment in 2024 underscores its commitment to innovation, particularly in sustainable aviation and next-gen propulsion systems. With free cash flow of $3.68 billion in 2024 and a 17% revenue jump in Q1 2025, GE is demonstrating the financial discipline and operational agility that institutional investors crave.

Leadership-Driven Transformation

Under CEO H. Lawrence Culp, Jr., GE Aerospace has embarked on a $1 billion U.S. manufacturing expansion, doubling its 2024 investment. This includes facility upgrades in Cincinnati, Muskegon, and other key locations to boost production of the CFM LEAP engine—a critical component for narrowbody aircraft. The company also plans to hire 5,000 U.S. workers in 2025, signaling a commitment to domestic supply chain resilience and workforce development.

Central to this transformation is the FLIGHT DECK initiative, a lean operating model that has improved supplier efficiency by 10% and delivery rates to 95%. These gains directly contributed to a 29% year-over-year revenue growth in the Commercial Engines & Services segment and a 45% increase in total engine units. Such operational precision is rare in a sector plagued by supply chain bottlenecks and labor shortages, making GE's execution a standout factor for institutional confidence.

Strategic Positioning for Long-Term Growth

GE's institutional appeal is further bolstered by its alignment with global megatrends. The company's $174.4 billion order backlog includes a $5 billion U.S. Air Force contract for F110-GE-129 engines and a joint venture with Safran on the RISE program, which aims to develop hydrogen-based propulsion systems. These contracts position GE at the forefront of sustainable aviation and defense modernization, two sectors expected to grow significantly in the coming decade.

Moreover, GE's pledge to return 70% of free cash flow to shareholders post-2026—via dividends and buybacks—has reinforced its appeal to value-conscious investors. Q2 2025 free cash flow of $2.1 billion and a 33% year-over-year operating profit increase demonstrate the company's ability to balance reinvestment with shareholder returns.

Investment Implications

While some institutions, like Capital Research Global Investors and FMR LLC, have trimmed their positions, these exits create a discounted entry point for investors who can differentiate between short-term caution and long-term conviction. GE's institutional buy-in, coupled with its strategic initiatives and financial strength, positions it as a rare combination of cyclical recovery and structural growth.

For investors, the key takeaway is clear: GE Aerospace is not just a beneficiary of the aerospace rebound but a leader in shaping its future. With institutional ownership at record levels and a leadership team executing a disciplined, innovation-driven strategy, GE offers a compelling case for those seeking exposure to a resilient industrial core.

In conclusion, the heavy investments by top wealth advisors signal a rare alignment between market fundamentals and strategic vision. As the industrial renaissance gains momentum, GE Aerospace stands out as a company not only navigating the current cycle but actively defining the next era of aerospace innovation. For long-term investors, this is a signal to consider GE as a cornerstone holding in a diversified portfolio.