ticker: GE
step: 01
generated: 2026-05-12
source: quick-research
GE Aerospace (GE) — Business Overview
Business Description
GE Aerospace is the world's largest jet engine manufacturer, formed as the pure-play successor to General Electric after the multi-year breakup that spun off GE HealthCare (Jan 2023) and GE Vernova (April 2024). The company produces and services commercial and military jet engines, with industry-leading positions in both new equipment and the high-margin aftermarket. Two business segments: Commercial Engines & Services (CES) and Defense & Propulsion Technologies (DPT). CEO Larry Culp orchestrated the breakup and remains in place.
Revenue Model
- Commercial Engines & Services (~80% of revenue): Original equipment (engine sales typically at break-even/loss) + Services (aftermarket maintenance, spare parts, shop visits — the high-margin recurring engine)
- Defense & Propulsion Technologies (~20%): Military propulsion (F404, F414, T700, F110), naval propulsion, aero-derivative gas turbines
- Service revenue typically 50%+ of CES sales with operating margins materially higher than OE
- 60%+ of total earnings come from Services
Products & Services
Commercial Engines (via CFM International JV with Safran for narrowbody)
- LEAP: Best-selling commercial engine ever — powers Airbus A320neo, Boeing 737 MAX, COMAC C919. LEAP installed base set to roughly triple between 2024-2030
- CF6, CFM56: Legacy installed base (CFM56 powers older 737 Classic / NG; CF6 powers 747/767)
- GE90: Powers Boeing 777
- GEnx: Powers Boeing 787 and 747-8
- GE9X: New widebody engine for Boeing 777X (entering service)
- CFM RISE: Open fan demonstrator — next-gen narrowbody engine for ~2035 (testbed in Singapore)
Defense
- F110: Powers F-15, F-16
- F404 / F414: Powers F/A-18, advanced trainers (recent Hindustan Aeronautics order for 113 F404 engines)
- T700: Helicopter engine (UH-60 Blackhawk)
- XA100: Next-gen adaptive cycle engine for F-35
- Aero-derivative gas turbines: Naval propulsion + commercial power
Services
- Shop visit maintenance for installed base (most profitable activity)
- Spare parts sales
- Repair services
- Asset management + leasing
Customer Base & Go-to-Market
- Boeing + Airbus: Sell engines as OE for new aircraft
- Airlines + lessors: Direct sales of replacement engines + spare parts + aftermarket
- US Military + Allied Forces: Defense propulsion
- MRO providers: Service partners + competitors
- Geographic mix: ~50% North America, ~30% Europe + Middle East, ~20% Asia Pacific
- Installed base: ~50,000+ commercial engines in service
Competitive Position
GE Aerospace + CFM (with Safran 50/50 JV) dominate commercial narrowbody (LEAP + CFM56 = effectively 100% of Boeing 737 + ~60% A320). Moats: (1) ~50,000 engines in service generating decades of high-margin aftermarket revenue, (2) certification + safety expertise creating massive barriers to entry, (3) CFM JV with Safran is structurally entrenched, (4) ~$190B backlog provides 5-7 year revenue visibility. Pratt & Whitney (RTX) competes in narrowbody (geared turbofan on A320), Rolls-Royce in widebody (Boeing 787, A350). Defense competition: Pratt & Whitney + Rolls-Royce.
Key Facts
- Founded: 1892 (General Electric, by Thomas Edison consolidation); GE Aerospace as standalone April 2, 2024
- Headquarters: Cincinnati, OH
- Employees: ~52,000
- Exchange: NYSE
- Sector / Industry: Industrials / Aerospace & Defense
- Market Cap: ~$245B (May 2026)
- CEO: H. Lawrence "Larry" Culp Jr. (since 2018)
- Dividend: $1.40 annual ($0.35 quarterly) — recently restored/growing
- Total backlog: ~$190B+ (CES ~$170B; DPT ~$20B)