General Electric Company (GE) | Investment Case

1. Company Snapshot

1.a. Company Description

General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems.It also offers aftermarket services to support its products.The company operates in the United States, Europe, China, Asia, the Americas, the Middle East, and Africa.

General Electric Company was incorporated in 1892 and is based in Evendale, Ohio.

Show Full description

1.b. Last Insights on GE

GE Aerospace's recent performance has been driven by strong operational results, booming demand for commercial engines, and solid defense orders. The company's Q3 earnings report showed a 44% EPS growth and 24% revenue rise, outpacing estimates and boosting its 2025 outlook. Surging demand for its LEAP engines and high-margin services business have fueled growth. Additionally, GE Aerospace's strategic pivot to a focused aerospace pure-play and substantial debt reduction have contributed to its success. The company has also raised its full-year guidance for the second consecutive quarter.

1.c. Company Highlights

Last Price	283.94
Change Percentage	-2.71%
Open	291.67
Previous Close	291.86
Market Cap ( Millions)	299504
Volume	5080196
Year High	316.67
Year Low	159.36
M A 50	300.45
M A 200	253.26

FCF Yield	2.17%
Dividend Yield	0.48%
ROE	42.13%
Debt / Equity	110.77%
Net Debt / EBIDTA	72.51%
Price To Book	16.1
Price Earnings Ratio	37.58
Price To FCF	46.08
Price To sales	6.81
EV / EBITDA	26.78

2. GE Aerospace Delivers Strong Q3 2025 Results

GE Aerospace reported a robust third quarter in 2025, with revenue growing 26% to $11.3 billion and operating profit up 26% to $2.3 billion. The company's EPS grew 44% to $1.66, beating analyst estimates of $1.46. Free cash flow was $2.4 billion, up 30%. The company's Commercial Engines and Services (CES) segment saw revenue growth of 27%, driven by services revenue up 28%, while Defense and Propulsion Technologies (DPT) revenue grew 26%. The strong financial performance was attributed to the company's FLIGHT DECK operating model, which has improved delivery and reduced turnaround times.

Publication Date: Oct -25

                                    📋 Highlights
                                    Revenue & Profit Growth::
                                                Q3 revenue jumped 26% to $11.3B, with operating profit up 26% to $2.3B, driven by strong performance in both Commercial Engines and Defense segments.
Earnings & Cash Flow Surge::
                                                EPS soared 44% to $1.66, while free cash flow hit $2.4B (+30%), with full-year EPS guidance raised to $6–$6.20 and cash flow guidance to $7.1B–$7.3B.
Segment Strength::
                                                Services revenue grew 28%, boosting CES to 27% growth, while DPT expanded 26%; backlog remains robust at $175B with 90% spare parts in stock.
Operational Improvements::
                                                Shop visits rose 22% YoY (30% for LEAP), driven by material availability and work scope expansion, with $1B invested to expand supply chain capacity.
Future Margin Targets::
                                                LEAP durability kits improved 2x, supporting 2028 margin goals, while 2026 outlook anticipates double-digit spare parts demand growth despite limited margin expansion in core businesses.

                                

Segment Performance

The CES segment's strong performance was driven by services revenue growth, with orders up 32% in the quarter. The backlog remains robust at roughly $175 billion, with 90% of needed spare parts already in hand. The company expects a seasonal step-down in fourth-quarter revenue due to spare parts, but the backlog remains strong. The DPT segment's revenue growth was driven by strong backlog and operational momentum, with the company applying lessons learned from commercial engines to the defense world.

Outlook and Guidance

The company raised its full-year guidance, expecting revenue growth in the high teens, with CES growth in the low 20s, and operating profit between $8.65 billion and $8.85 billion. EPS guidance was raised to $6 to $6.20, and free cash flow guidance to $7.1 billion to $7.3 billion. The company expects strong revenue growth, profit growth, and cash flow in 2026, with CES revenue growth driven by an improving commercial environment and services business growth driven by installed base growth and work scopes.

Valuation and Metrics

With a P/E Ratio of 40.22 and an EV/EBITDA of 29.53, the market is pricing in a certain level of growth for GE Aerospace. The company's ROIC is 32.66%, indicating a strong return on invested capital. The Net Debt / EBITDA ratio is 0.74, indicating a manageable debt burden. Analysts estimate next year's revenue growth at 11.9%, which is slightly lower than the company's current guidance.

Investment Highlights

The company's focus on supply chain management, sustainment models, and product improvements is expected to drive long-term growth. The rollout of the LEAP durability kit is expected to drive significant benefits, with a 2x improvement in durability. The company's hybrid electric turbo generator project could have implications for defense applications, and the defense business is expected to continue growing.

3. NewsRoom

GE Aerospace Board of Directors Authorizes Regular Quarterly Dividend

Dec -04

Source: businesswire.com

GE Aerospace (GE) Declines More Than Market: Some Information for Investors

Dec -01

Source:

US approves potential $455 million sale of F-16 sustainment to Bahrain

Dec -01

Source: reuters.com

How black boxes became key to solving airplane crashes

Nov -30

Source: cnbc.com

GE Aerospace to Pump in $53M to Upgrade West Jefferson Facility

Nov -25

Source: zacks.com

What Every GE Aerospace Investor Should Know Before Buying

Nov -24

Source: fool.com

Saudia Group Selects GE Aerospace GEnx-1B Engines to Power New 787 Dreamliners

Nov -24

Source: globenewswire.com

Why Is GE (GE) Up 1% Since Last Earnings Report?

Nov -20

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.27%)

6. Segments

Commercial Engines & Services

Expected Growth: 8.0%

The 8.0% growth in Commercial Engines & Services at General Electric Company is driven by increasing demand for air travel, fleet expansion, and aftermarket services. The segment benefits from GE's strong position in the commercial aviation industry, with a large installed base and a robust backlog of orders. Services growth is fueled by digital transformation and predictive maintenance solutions.

Defense & Propulsion Technologies

Expected Growth: 6.0%

GE's Defense & Propulsion Technologies growth of 6.0% is driven by increasing demand for advanced military technologies, rising government defense spending, and the company's strong portfolio of innovative solutions, including hypersonic systems, advanced materials, and digital transformation initiatives.

Corporate & Other

Expected Growth: 4.0%

The 4.0 growth in Corporate & Other segment of General Electric Company is driven by increased investments in renewable energy, strong performance in aviation and healthcare sectors, and benefits from cost-saving initiatives and restructuring efforts, leading to improved profitability and competitiveness.

7. Detailed Products

GE Healthcare Medical Imaging

Medical imaging technologies such as MRI, CT, and PET scanners for diagnostic purposes

GE Healthcare Patient Monitoring

Patient monitoring systems and solutions for tracking vital signs and health metrics

GE Renewable Energy Wind Turbines

Wind turbines for renewable energy generation

GE Renewable Energy Solar Energy Systems

Solar energy systems for renewable energy generation

GE Power Gas Turbines

Gas turbines for power generation and industrial applications

GE Power Steam Turbines

Steam turbines for power generation and industrial applications

GE Aviation Jet Engines

Jet engines for commercial and military aircraft

GE Transportation Locomotives

Locomotives for rail transportation

GE Appliances Home Appliances

Home appliances such as refrigerators, washing machines, and air conditioners

8. General Electric Company's Porter Forces

Forces Ranking

Threat Of Substitutes

General Electric Company operates in various industries, including aviation, healthcare, and energy. While there are substitutes available for some of its products and services, the company's diversified portfolio and strong brand reputation reduce the threat of substitutes. However, emerging technologies and innovative solutions from competitors could potentially increase the threat level.

Bargaining Power Of Customers

General Electric Company has a large and diverse customer base across various industries. While some customers may have significant bargaining power, the company's scale and market presence enable it to maintain a relatively strong position in negotiations. Additionally, GE's products and services are often critical to its customers' operations, reducing their bargaining power.

Bargaining Power Of Suppliers

General Electric Company has a large and diversified supply chain, which reduces its dependence on individual suppliers. However, some suppliers may have significant bargaining power due to the high demand for their products or services. GE's scale and market presence enable it to negotiate favorable terms with suppliers, but it may face some pressure from suppliers in certain industries.

Threat Of New Entrants

General Electric Company operates in industries with high barriers to entry, such as aviation and healthcare. The company's strong brand reputation, significant R&D investments, and established relationships with customers and suppliers make it difficult for new entrants to compete. Additionally, regulatory requirements and industry standards create additional hurdles for new entrants.

Intensity Of Rivalry

General Electric Company operates in highly competitive industries, including aviation, healthcare, and energy. The company faces significant competition from established players, such as Boeing, Siemens, and Philips, as well as emerging players from Asia. The competitive landscape is characterized by intense pricing pressure, significant R&D investments, and a high level of innovation.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	49.91%
Debt Cost	5.86%
Equity Weight	50.09%
Equity Cost	10.61%
WACC	8.24%
Leverage	99.64%

11. Quality Control: General Electric Company passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

L3Harris

A-Score: 6.2/10

Value: 3.0

Growth: 5.7

Quality: 6.8

Yield: 4.0

Momentum: 8.0

Volatility: 9.7

1-Year Total Return ->

Northrop Grumman

A-Score: 6.0/10

Value: 3.5

Growth: 5.9

Quality: 6.6

Yield: 3.0

Momentum: 8.5

Volatility: 8.7

1-Year Total Return ->

Raytheon Technologies

A-Score: 5.4/10

Value: 2.3

Growth: 3.8

Quality: 5.0

Yield: 4.0

Momentum: 8.5

Volatility: 8.7

1-Year Total Return ->

HEICO

A-Score: 5.0/10

Value: 0.5

Growth: 7.3

Quality: 7.1

Yield: 0.0

Momentum: 7.5

Volatility: 7.7

1-Year Total Return ->

Lockheed Martin

A-Score: 4.7/10

Value: 2.8

Growth: 5.1

Quality: 4.5

Yield: 6.0

Momentum: 1.0

Volatility: 9.0

1-Year Total Return ->

A-Score: 4.7/10

Value: 0.7

Growth: 3.4

Quality: 6.6

Yield: 0.0

Momentum: 9.0

Volatility: 8.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

18.98%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.24%

General Electric Company - US3696043013

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on GE

1.c. Company Highlights

Expensive

Strong Momentum

Average Growth

Earnings Beats

Revenues Beats

Lower Growth

Revenues Miss

Stable Momentum

Average Quality

Better Quality

Less Volatile

2. GE Aerospace Delivers Strong Q3 2025 Results

Segment Performance

Outlook and Guidance

Valuation and Metrics

Investment Highlights

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.27%)

6. Segments

Commercial Engines & Services

Expected Growth: 8.0%

Defense & Propulsion Technologies

Expected Growth: 6.0%

Corporate & Other

Expected Growth: 4.0%

7. Detailed Products

GE Healthcare Medical Imaging

GE Healthcare Patient Monitoring

GE Renewable Energy Wind Turbines

GE Renewable Energy Solar Energy Systems

GE Power Gas Turbines

GE Power Steam Turbines

GE Aviation Jet Engines

GE Transportation Locomotives

GE Appliances Home Appliances

8. General Electric Company's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: General Electric Company passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

283.94$

Current Price

283.94$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA