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Where Will GE Aerospace Stock Be in 3 Years?

newsfeedback@fool.com (Reuben Gregg Brewer)
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⚡ Quantum Brief
The aerospace division retained the GE ticker after General Electric’s 2025 split, now operating as a standalone entity focused solely on jet engines and aviation services. Revenue surged 21% in 2025 to $46 billion, driven by a 7% rise in commercial equipment sales and a 31% jump in service revenues, reflecting strong global air travel demand. A $190 billion backlog—equivalent to three years of current revenue—ensures steady growth through 2029, with long-term service contracts locking in future income streams. The stock has climbed over 80% since early 2025, but high valuation metrics (P/S 7x, P/E 38x) suggest growth investors dominate, while value seekers may hesitate. Analysts project sustained momentum from aircraft modernization and rising travel, though premium valuations could limit near-term upside without accelerated earnings growth.
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By Reuben Gregg Brewer – Apr 15, 2026 at 3:15PM ESTKey PointsGE Aerospace generated nearly $46 billion in revenue in 2025.The company's backlog is $190 billion.GE Aerospace (GE 1.29%) is the company that retained the storied "GE" ticker after General Electric split into separate, publicly traded businesses. As its name implies, GE Aerospace retained GE's aerospace operations. That has set the company up for long-term success, as evidenced by its impressive backlog. Here's why investors already have a pretty clear picture of where GE Aerospace will be in three years. GE Aerospace is well-positioned GE Aerospace makes things like jet engines. Air travel is growing worldwide, and older aircraft are being replaced at the same time. So demand for jet engines is strong right now. For example, commercial equipment sales rose 7% year over year in the fourth quarter of 2025. Image source: Getty Images. However, the sale of a jet engine is just the start of the story. GE Aerospace also provides the parts and services needed to maintain those engines. So every new engine sold helps to build an annuity-like income stream from the sale of parts and services. In the commercial segment of the business, service revenues jumped 31% year over year in the final quarter of 2025. All in, the company's adjusted revenue grew 21% in 2025, with adjusted earnings up 38%. It was a pretty good year, and the stock is up over 80% since the start of 2025. The good financial news isn't going to end anytime soon. GE Aerospace's backlog tells an important story Jet engines are expensive. They are also time-consuming to build. Airlines order them years in advance to ensure they get the engines they need when they need them. These orders, plus long-term service contracts, fill GE Aerospace's backlog. At the end of 2025, the company's backlog was a massive $190 billion. ExpandNYSE: GEGE AerospaceToday's Change(-1.29%) $-4.10Current Price$313.90Key Data PointsMarket Cap$332BDay's Range$311.40 - $318.2452wk Range$176.02 - $348.48Volume163KAvg Vol5.8MGross Margin36.64%Dividend Yield0.49% That's an interesting number, because it provides some certainty to the company's revenues. In 2025, GE Aerospace's revenues were just shy of $46 billion. Rounding that up to $50 billion, the backlog suggests that the company has three years of sales locked in, with some room for growth along the way. In other words, the next three years look just as promising as the one that just ended. One caveat for GE Aerospace Investors aren't ignoring GE Aerospace's success, as evidenced by the 80% stock price advance highlighted above. However, the recent split-up of GE means there's no historical valuation comparison. But the price-to-sales ratio of 7x, the price-to-earnings ratio of 38x, and the price-to-book value ratio of 17x all suggest that the stock is a bit expensive on an absolute basis. Growth investors may find the stock appealing, given the sales runway that is ahead over at least the next three years, but value investors will probably want to look elsewhere.Read NextApr 7, 2026 •By Lou Whiteman6 Best Defense ETFs to Buy in 2026Apr 6, 2026 •By Frank BassBest Nuclear Energy Stocks in 2026 and How to InvestApr 15, 2026 •By Leo SunThe Market Didn't See AST SpaceMobile's Move Coming. These 2 Stocks Are Next to Watch.Apr 15, 2026 •By Courtney Carlsen2 Mining Stocks to Buy in 2026 to Hedge InflationApr 15, 2026 •By Rich SmithWhy Tesla Stock Popped on WednesdayApr 15, 2026 •By Chris NeigerI've Owned Apple Stock for Years. Here's Why I'm Letting Its AI Story Play Out.About the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedGE AerospaceNYSE: GE$313.90(-1.29%)-$4.10*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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