GE Aerospace
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.
What does it do?
GE Aerospace makes the jet engines that power most of the planes you fly on. Think of the LEAP engine inside a Boeing 737 MAX or an Airbus A320 — GE built that. They also make engines for military jets and other aircraft systems. Beyond selling the engine itself, they run a massive repair and maintenance business, so every time an airline needs its engines serviced, GE often gets paid again.
Air travel demand has rebounded strongly since the pandemic, and airlines are ordering new planes at record rates — which means more GE engines. At the same time, GE recently completed a historic split, spinning off its energy and healthcare arms to become a pure-play aerospace company, making it cleaner and more focused for investors. With defense budgets rising globally and commercial aviation booming, GE sits at the center of two of the biggest spending waves in industrials right now.
How does it make money?
GE makes money in two main ways. First, they sell engines to airlines and militaries — commercial engines alone drove a big chunk of their $42.3 billion in revenue, up sharply from $35.1 billion the year before. Second, and more importantly, they earn recurring revenue through long-term service contracts: every engine they sell essentially locks in years of maintenance, repair, and spare parts sales. This aftermarket business is high-margin and sticky, meaning airlines can't easily switch to a competitor once GE engines are already on their fleet.
Why do investors care?
The growth story here is a two-part flywheel. Every new engine sold today creates 20-plus years of service revenue tomorrow — and GE has a massive installed base of over 44,000 engines in service worldwide. Investors also like that GE spun off its legacy businesses, removing old debt and complexity that weighed on the stock for years. What has to go right: airlines need to keep flying at high capacity, Boeing and Airbus need to keep delivering new planes with GE engines on them, and defense spending needs to stay elevated.
Deep Dive
MemberA full investor briefing on GE Aerospace — history, leadership, risks, and outlook.