Industrials
Industrial conglomerate focused on aerospace and energy technology.
View forensic reportFree cash flow moved from $3.68 billion in 2024 to $7.26 billion in 2025, a 97% lift, ahead of the Q1 print that will set the tone for the rest of the year. The narrative is finally catching up to the engine franchise economics.
At 41.5x forward earnings, the market is applying a single blended multiple to two distinct businesses. The aftermarket franchise, now entering the LEAP shop visit wave, is worth significantly more.
Freed from the conglomerate, GE Aerospace has tripled in value. With 70% service revenue at 35-40% margins and a 40-year installed base, the premium is earned.
GE Aerospace's LEAP and GE9X engine orders are running at record levels, and management is converting backlog into shareholder returns at a pace that would make any capital allocator envious.