GE Aerospace
Key statistics
from XBRL data in SEC filingsAI briefing
from the latest 10-K, 10-Q and 8-K eventsGE Aerospace is the commercial and defense aircraft engine business that emerged from the 2024 split of General Electric, now trading as GE on the NYSE.
What they do
GE Aerospace designs, manufactures, and services jet engines for commercial and military aircraft, operating through Commercial Engines Services and Defense Propulsion Technologies. The services segment provides aftermarket support, including shop visits, spare parts, and maintenance, while the defense segment supplies engines for military platforms.
Revenue drivers
- Commercial Engines Services — Largest segment, generating Q2 2026 adjusted revenue of $9.7B (up 27% YoY) from aftermarket services, including shop visits and spare parts for engines like the LEAP.
- Defense Propulsion Technologies — Generated Q2 2026 adjusted revenue of $3.4B (up 16% YoY), supplying engines to U.S. and allied militaries, including F404 and CT7 engines.
- Equipment sales — New engine deliveries, including LEAP and other commercial/defense engines, grew 31% in H1 2026, contributing to total orders of $16.5B (+17% in Q2).
Recent performance
In Q2 2026, GAAP revenue rose 21% to $13.3B and adjusted revenue rose 24% to $12.6B. Adjusted operating profit grew 18% to $2.7B with a 21.7% margin; adjusted EPS rose 22% to $2.02. Free cash flow jumped 43% to $3.0B. H1 2026 adjusted revenue grew 27% and adjusted EPS grew 24% to $3.88.
Strategy
Management is focused on expanding services capacity, including record internal shop visit output, and investing in next-generation technology. Priorities include improving engine time-on-wing and cost of ownership. They are also advancing defense programs like the XA102 and GE426 engines, and hybrid-electric systems via NASA's EPFD project. Execution is driven by the FLIGHT DECK operating model, targeting supply chain improvements and delivery growth.
Risks
- Supply chain constraints — Although material input from priority suppliers improved double-digits, any disruption could hinder engine and spare part deliveries.
- Concentration in commercial aerospace — Heavy reliance on the commercial aftermarket makes results sensitive to airline traffic, fleet utilization, and engine shop visit volumes.
- Defense program dependency — Delays or cancellations in U.S. and allied defense contracts could impact Defense Propulsion Technologies revenue.
- Technology execution risk — Next-gen programs like the XA102, GE426, and hybrid-electric systems face certification and development risks that could delay milestones.
Outlook
Management raised full-year 2026 guidance across the board, citing strong H1 performance and visibility into the over $210B backlog. They expect continued services growth and equipment delivery increases, with LEAP production ramping. Guidance includes robust cash generation and margin expansion, with full cutover of the LEAP-1B durability kit expected by beginning of 2027.