In April 2024, GE Aerospace emerged from the former GE conglomerate as a formidable and focused global turbine engine producer, powering about three of every four commercial airline flights on Earth.
Bears vastly underestimate the incremental profits GE will make from operating leverage as commercial aerospace fully recovers and its Leap engine aftermarket program enters its profitable phase.
Bears
GE is all in on its experimental open-fan Rise design for the next generation of commercial engines, which aircraft makers might adopt to enter service in the 2040s.
GE Aerospace is the global leader in designing, manufacturing, and servicing commercial aircraft turbine engines, along with partner Safran in their CFM joint venture. With its massive global installed base of nearly 80,000 commercial and military engines, GE Aerospace earns most of its profits on recurring service revenue of that equipment, which operates for decades. GE Aerospace is the remaining core business of the company formed in 1892 with historical ties to American inventor Thomas Edison; General Electric became a storied conglomerate, with peak revenue of $130 billion in 2000, until it spun off its appliance, finance, healthcare, and wind and power businesses between 2016 and 2024.