# GE Aerospace (GE.US)

Canonical: https://gigainvestors.com/s/GE

Analysis as of: 2026-10-16T07:28:43.950Z. Financial observations: FY1996–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: $312.00 per share; close as of 2026-10-15.

Estimated value: low $100.56 per share, central $113.32 per share, high $130.31 per share. Buy at or below the central value $113.32 per share. Valuation as of 2026-10-16T07:28:43.950Z; scenarios are not confidence intervals.

Expected annual return: 5.4% at the stated quote. About 5.4% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 6 revenue declines in the last 10 years

- more than 5 revenue declines in ten years

- more than 2 net loss years

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 6

- Years with a net loss: 4

- Operating margin variation: 0.93×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.12×

- FY2017: -0.03×

- FY2018: 0.07×

- FY2019: 0.06×

- FY2020: 0.01×

- FY2021: 0.02×

- FY2022: 0.02×

- FY2023: 0.13×

- FY2024: 0.17×

- FY2025: 0.19×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 4.9%

- ROIC, second-lowest year: 0.9%

- Typical minus recent gross margin: -9.5 pp

- Typical gross margin (annual median): 27.4%

- Recent gross margin (lower of latest and 3-year median): 36.8%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.5%

- ROIC including acquisitions, ten-year median: 4.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 9.5%

- FY2017: -2.5%

- FY2018: 4.0%

- FY2019: 5.4%

- FY2020: 0.9%

- FY2021: 2.3%

- FY2022: 4.3%

- FY2023: 22.1%

- FY2024: 35.6%

- FY2025: 42.5%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 1.13×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $21B

- Net income, five-year total: $19B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: -0.4 pp

- Working capital / revenue, final three-year average: 37.3%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.84×

- FY2022: 6.92×

- FY2023: 0.96×

- FY2024: 1.02×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 4.0% vs 35.6%

- Per-share earnings: -4.99 to 8.15 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.4%

- Ordinary dilution, 5-year annual growth: -4.9%

- Market cap gain: $155B

- Cumulative retained earnings: -$52B

- Diluted shares, 10-year annual growth: -1.4%

- Diluted shares, 5-year annual growth: -4.9%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value change: $13.14

- Per-share value, starting three-year median: -$4.99

- Per-share value, ending three-year median: $8.15

- Buybacks concentrated in cheaper years (correlation): 0.08

- Average buyback yield: 2.7%

- Buyback history: 9 years

- Debt-funded buybacks: Yes

- Acquisition spending: $4.0B

- Cumulative net income, 10 years: -$3.9B

- ROIC, first three-year median: 4.0%

- ROIC, last three-year median: 35.6%

Chart: Earnings per share; fiscal year observations.

- FY2016: $6.74

- FY2017: -$7.81

- FY2018: -$20.55

- FY2019: -$3.64

- FY2020: $4.16

- FY2021: -$4.61

- FY2022: $0.27

- FY2023: $8.63

- FY2024: $5.99

- FY2025: $8.15

### accounting: pass

- Sloan accruals: 0.1%

- Receivables to sales index (DSRI): 1.05×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.98×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.71×

Chart: Sloan accruals; fiscal year observations.

- FY2016: 1.7%

- FY2017: -3.9%

- FY2018: -8.8%

- FY2019: -5.2%

- FY2020: 0.8%

- FY2021: -4.9%

- FY2022: -3.0%

- FY2023: 2.4%

- FY2024: 1.5%

- FY2025: 0.1%

## Holders

- [Nicolai Tangen](https://gigainvestors.com/AKO): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [David Hoeft](https://gigainvestors.com/DAC): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Andrew Adams](https://gigainvestors.com/MPF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Christopher Bloomstran](https://gigainvestors.com/SA): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Robert Torray](https://gigainvestors.com/T): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Nelson Peltz](https://gigainvestors.com/TF): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Arnold Van Den Berg](https://gigainvestors.com/VAN): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Dan Davidowitz](https://gigainvestors.com/pcm): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Chris Hohn](https://gigainvestors.com/tci): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 14.3% a year for ten years · "2028 Profit Outlook: $11.5 billion." (finance.yahoo.com, Jul 2025) · sales +18.5%

Story as of 2026-10-16T09:58:48.503Z; price observation 2026-10-15.

Price needs cash profits to grow 14.3% a year for ten years

- 2025-07-17: GE Aerospace Climbs on Robust Q2 Earnings, Lifts Full-Year Guidance ([finance.yahoo.com](https://finance.yahoo.com/news/ge-aerospace-climbs-robust-q2-131004552.html))

- 2026-02-17: GE Aerospace Wins Big United Deal And Expands Long Term Engine Base ([finance.yahoo.com](https://finance.yahoo.com/news/ge-aerospace-wins-big-united-231308249.html))

- 2026-03-18: Rare Earth Shift Tests GE Aerospace Defense Supply Chain And Margins ([finance.yahoo.com](https://finance.yahoo.com/news/rare-earth-shift-tests-ge-001958734.html))

- 2026-05-16: GE Aerospace Taps US China Deal For Long Term Engine Revenue ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/ge-aerospace-taps-us-china-012116028.html))

- 2026-06-26: General Electric (GE) Is Betting On A $170 Billion Services Backlog ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/general-electric-ge-betting-170-220930021.html))

- 2026-09-24: GE Aerospace Faces Margin Pressure From Rising Costs: Can It Recover? ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/ge-aerospace-faces-margin-pressure-141000210.html))

### Sales · FY2024–2025

sales +18.5%; source https://www.sec.gov/Archives/edgar/data/40545/000004054526000008/ge-20251231.htm; observed 2026-01-29.

- FY2016: $119B 

- FY2017: $99B 

- FY2018: $97B 

- FY2019: $90B 

- FY2020: $76B 

- FY2021: $56B 

- FY2022: $77B 

- FY2023: $35B 

- FY2024: $39B 

- FY2025: $46B 

### Gross margin · FY2025

gross margin 36.8%; source https://www.sec.gov/Archives/edgar/data/40545/000004054526000008/ge-20251231.htm; observed 2026-01-29.

- FY2016: 26.6% 

- FY2017: 23.9% 

- FY2018: 28.5% 

- FY2019: 28.1% 

- FY2020: 23.7% 

- FY2021: 23.2% 

- FY2022: 18.1% 

- FY2023: 35.1% 

- FY2024: 37.2% 

- FY2025: 36.8% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in aerospace & defense; annual sales are USD 45.9 billion.

- Source: https://www.sec.gov/Archives/edgar/data/40545/000004054526000008/ge-20251231.htm (filed 2026-01-29); FY2025: revenue 45855000000; grossProfit 16887000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GE.US: General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and aircraft systems. The company operates through two segments, Commercial Engines & Services, and Defense & Propulsion Technologies. The Commercial Engines & Services segment designs, develops, manufactures, maintenance, repair, and overhaul (MRO) services of jet engines and sale of spare parts for commercial airframes, business aviation, and aeroderivative applications. The Defense & Propulsion Technologies designs, develops, manufactures, and services jet engines and avionics and power systems for governments, militaries, and commercial airframers, as well as MRO of engines and the sale of spare parts. This segment also offers aircraft components and systems, such as small turboprop engines, aeroengine mechanical transmissions, turbines, combustors and controls, additive manufacturing, propeller systems, ignition systems, sensors and engine accessories for fixed wing and rotorcraft applications for commercial and military end users under the Avio Aero, Unison, Dowty Propellers, and Colibrium Additive brands. The company operates in the United States, Europe, Asia, the Americas, the Middle East, and Africa. General Electric Company was incorporated in 1892 and is based in Evendale, Ohio.

### Why customers stay

Margins ranged from 35.1% to 37.2% during 2023–25; it earns 4.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); FY2023: grossProfit / revenue = 35.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); FY2024: grossProfit / revenue = 37.2%.

- Source: https://www.sec.gov/Archives/edgar/data/40545/000004054526000008/ge-20251231.htm (filed 2026-01-29); FY2025: grossProfit / revenue = 36.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); 10-year return on capital observations [[2016,0.09540792980000538],[2017,-0.024635220985039962],[2018,0.040056621744249704],[2019,0.0538436805335027],[2020,0.00923751016351974],[2021,0.022606226165039354],[2022,0.0434600580328063],[2023,0.22103340463785198],[2024,0.35627802495377425],[2025,0.4254086009368474]]; median 0.0486518692831545. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 0.6% of cash earnings on expansion; paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); FY2016: growth capex 129000000; upkeep 7070000000; owner earnings 7500000000. Growth capex / owner earnings = 0.0172.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); FY2020: growth capex 0; upkeep 3403000000; owner earnings 5765000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); FY2022: growth capex 0; upkeep 1174000000; owner earnings 2020000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); FY2023: growth capex 0; upkeep 1595000000; owner earnings 9066000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); FY2024: growth capex 0; upkeep 1032000000; owner earnings 6708000000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/40545/000004054526000008/ge-20251231.htm (filed 2026-01-29); FY2025: growth capex 53000000; upkeep 1220000000; owner earnings 8704000000. Growth capex / owner earnings = 0.006089154411764706.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); Dividend observations: [[2016,8806000000],[2017,8650000000],[2018,4474000000],[2019,649000000],[2020,648000000],[2021,575000000],[2022,639000000],[2023,589000000],[2024,1008000000],[2025,1452000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/40545/000004054526000008/ge-20251231.htm (filed 2026-01-29); FY2025: cash repurchases 7551000000 USD.

### Are managers owners

Insiders own 0.3% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GE.US SharesStats.PercentInsiders = 0.3 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 14.3% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-01-29); Ten-year compound average after fade. Initial solved rate 0.19371161668180564. Price 312; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -6.995621627125547 → FY2025 8.149812734082397. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-11: $147.42 per share

- 2016-12: $151.44 per share

- 2017-01: $142.34 per share

- 2017-02: $142.86 per share

- 2017-03: $142.81 per share

- 2017-04: $138.93 per share

- 2017-05: $131.22 per share

- 2017-06: $129.44 per share

- 2017-07: $122.73 per share

- 2017-08: $117.65 per share

- 2017-09: $115.88 per share

- 2017-10: $96.62 per share

- 2017-11: $87.65 per share

- 2017-12: $83.63 per share

- 2018-01: $77.49 per share

- 2018-02: $67.62 per share

- 2018-03: $64.60 per share

- 2018-04: $67.43 per share

- 2018-05: $67.48 per share

- 2018-06: $65.23 per share

- 2018-07: $65.32 per share

- 2018-08: $62.01 per share

- 2018-09: $54.11 per share

- 2018-10: $48.40 per share

- 2018-11: $35.94 per share

- 2018-12: $36.28 per share

- 2019-01: $48.69 per share

- 2019-02: $51.79 per share

- 2019-03: $49.79 per share

- 2019-04: $50.69 per share

- 2019-05: $47.05 per share

- 2019-06: $52.33 per share

- 2019-07: $52.08 per share

- 2019-08: $41.12 per share

- 2019-09: $44.56 per share

- 2019-10: $49.74 per share

- 2019-11: $56.17 per share

- 2019-12: $55.62 per share

- 2020-01: $62.05 per share

- 2020-02: $54.23 per share

- 2020-03: $39.57 per share

- 2020-04: $33.89 per share

- 2020-05: $32.75 per share

- 2020-06: $34.04 per share

- 2020-07: $30.25 per share

- 2020-08: $31.60 per share

- 2020-09: $31.05 per share

- 2020-10: $36.98 per share

- 2020-11: $50.74 per share

- 2020-12: $53.83 per share

- 2021-01: $53.23 per share

- 2021-02: $62.50 per share

- 2021-03: $65.44 per share

- 2021-04: $65.39 per share

- 2021-05: $70.08 per share

- 2021-06: $67.09 per share

- 2021-07: $64.54 per share

- 2021-08: $65.67 per share

- 2021-09: $64.19 per share

- 2021-10: $65.34 per share

- 2021-11: $59.18 per share

- 2021-12: $58.86 per share

- 2022-01: $58.86 per share

- 2022-02: $59.50 per share

- 2022-03: $57.01 per share

- 2022-04: $46.45 per share

- 2022-05: $48.78 per share

- 2022-06: $39.67 per share

- 2022-07: $46.05 per share

- 2022-08: $45.75 per share

- 2022-09: $38.57 per share

- 2022-10: $48.48 per share

- 2022-11: $53.56 per share

- 2022-12: $52.20 per share

- 2023-01: $64.23 per share

- 2023-02: $67.61 per share

- 2023-03: $76.30 per share

- 2023-04: $78.99 per share

- 2023-05: $81.03 per share

- 2023-06: $87.67 per share

- 2023-07: $91.17 per share

- 2023-08: $91.35 per share

- 2023-09: $88.23 per share

- 2023-10: $86.70 per share

- 2023-11: $97.21 per share

- 2023-12: $101.86 per share

- 2024-01: $105.68 per share

- 2024-02: $125.21 per share

- 2024-03: $140.09 per share

- 2024-04: $161.82 per share

- 2024-05: $165.14 per share

- 2024-06: $158.97 per share

- 2024-07: $170.20 per share

- 2024-08: $174.62 per share

- 2024-09: $188.58 per share

- 2024-10: $171.78 per share

- 2024-11: $182.16 per share

- 2024-12: $166.79 per share

- 2025-01: $203.57 per share

- 2025-02: $206.98 per share

- 2025-03: $200.15 per share

- 2025-04: $201.54 per share

- 2025-05: $245.91 per share

- 2025-06: $257.39 per share

- 2025-07: $271.08 per share

- 2025-08: $275.20 per share

- 2025-09: $300.82 per share

- 2025-10: $308.95 per share

- 2025-11: $298.45 per share

- 2025-12: $308.03 per share

- 2026-01: $306.79 per share

- 2026-02: $342.26 per share

- 2026-03: $283.77 per share

- 2026-04: $289.93 per share

- 2026-05: $323.76 per share

- 2026-06: $373.73 per share

- 2026-07: $360.07 per share

- 2026-08: $335.71 per share

- 2026-09: $312.29 per share

- 2026-10: $307.63 per share

## Annual estimated value (USD per share)

- FY2016: low $153.40 per share, central $163.40 per share, high $176.70 per share

- FY2017: low $72.86 per share, central $78.86 per share, high $86.85 per share

- FY2023: low $27.66 per share, central $28.94 per share, high $30.64 per share

- FY2024: low $42.03 per share, central $46.09 per share, high $51.48 per share

- FY2025: low $92.08 per share, central $103.30 per share, high $118.23 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/40545/000004054526000008/ge-20251231.htm); period 2025-12-31, filed 2026-01-29.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.