Institutional Confidence in GE Aerospace Surges as Industrial Aerospace Sector Enters Cyclical Upswing

The industrial aerospace sector is emerging from a prolonged slump, and institutional investors are taking notice. Recent data reveals a sharp increase in institutional ownership of GE Aerospace (NYSE:GE), with major advisors like Sax Wealth Advisors LLC and POM Investment Strategies LLC significantly boosting their stakes. This surge in confidence is not merely speculative—it reflects a broader structural shift in the aerospace industry, driven by a confluence of macroeconomic tailwinds, technological innovation, and strategic positioning by companies like GE.

A Sector on the Cusp of Recovery

The aerospace industry has long been cyclical, but 2025 marks a pivotal inflection point. Global air travel, which cratered during the pandemic, has rebounded with unprecedented vigor. The International Air Transport Association (IATA) reports that air passenger traffic grew by 11.6% in 2024, with year-to-date capacity expanding by 10.2%. Airlines are scrambling to meet demand, accelerating orders for new aircraft and next-generation technologies. This surge in activity is creating a virtuous cycle: higher aircraft production drives demand for engines and components, while advancements in AI and automation are optimizing maintenance and operational efficiency.

GE Aerospace: A Case Study in Strategic Resilience

GE Aerospace is uniquely positioned to capitalize on this recovery. The company's Commercial Engines & Services (CES) segment reported a 17% revenue increase in Q1 2025, fueled by a landmark deal with Qatar Airways involving over 400 engines and extensive MRO agreements. Its $153.8 billion backlog provides a stable revenue runway, while the reinstatement of U.S. licensing for Chinese sales opens a critical growth market.

Financially, GE is demonstrating robust health. Full-year 2024 results show revenue of $38.7 billion, with operating income surging to $6.76 billion and free cash flow remaining strong at $3.68 billion. These metrics underscore the company's ability to navigate macroeconomic headwinds while investing in innovation. GE's RISE program, aimed at improving fuel efficiency and reducing emissions, positions it to meet evolving regulatory standards and compete with peers like Rolls-Royce and Pratt & Whitney.

Institutional Buying as a Contrarian Signal

The recent influx of institutional capital into GE Aerospace is a telling indicator. Sax Wealth Advisors increased its stake by 19.2%, while POM Investment Strategies LLC saw a 1,078.6% jump in holdings. These moves suggest that professional money managers view GE as a contrarian play in a market still dominated by speculative AI stocks. With institutional ownership now at 74.77%, the consensus appears to be that GE's combination of cyclical exposure, operational discipline, and technological edge makes it a compelling long-term bet.

Risks and Considerations

While the outlook is optimistic, investors must remain cautious. Aerospace is a capital-intensive industry prone to supply chain disruptions and regulatory shifts. Additionally, GE faces competition from rivals and the challenge of scaling AI-driven solutions in MRO and predictive maintenance. However, the company's $1.29 billion R&D investment in 2024 and its alignment with global trends like advanced air mobility (AAM) and unmanned systems mitigate these risks.

Investment Thesis

For investors seeking exposure to a cyclical recovery, GE Aerospace offers a rare blend of defensive qualities and growth potential. Its strong backlog, strategic partnerships, and institutional backing make it a standout in a sector poised for expansion. While short-term volatility is inevitable, the long-term fundamentals—driven by air travel growth, AI adoption, and defense spending—favor a bullish stance.

In conclusion, GE Aerospace is not just riding the wave of a sectoral rebound—it's actively shaping it. As institutional investors pile in, the company's ability to balance innovation with operational efficiency positions it as a key player in the next phase of aerospace modernization. For those willing to think long-term, GE represents a compelling opportunity to capitalize on a cyclical upswing with enduring structural underpinnings.