GE Aerospace (GE 1.26%) 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.
Today’s Change
(-1.26%) $-4.02
Current Price
$313.98
Key Data Points
Market Cap
$332B
Day’s Range
$311.40 – $318.24
52wk Range
$176.02 – $348.48
Volume
138K
Avg Vol
5.8M
Gross Margin
36.64%
Dividend Yield
0.49%
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.
