GE Aerospace (GE) Stock Analysis

GE Aerospace’s competitive edge rests on scale, technology, and customer entrenchment. The company operates the world’s largest installed base of commercial and military aircraft engines—approximately 45,000 commercial and 25,000 military units—supporting a high-margin aftermarket business that accounts for roughly 70% of revenue. This scale provides recurring service income and deepens customer relationships, making switching costly for airlines and defense clients.

Technological leadership is another differentiator. GE’s LEAP engine, produced via CFM International (a 50/50 JV with Safran), is the dominant narrowbody engine on Boeing 737 MAX and Airbus A320neo families, outpacing Pratt & Whitney’s GTF in both deliveries and operational reliability. In widebody, GE’s GEnx and GE90 engines are standard on Boeing 787 and 777 platforms, respectively, with Rolls-Royce as the primary competitor. GE’s R&D spend—$1.3 billion in 2024—supports ongoing innovation, including next-generation propulsion and sustainability initiatives.

Customer satisfaction is reinforced by industry-leading engine reliability and turnaround times, underpinned by the proprietary FLIGHT DECK lean operating model. The company’s culture emphasizes safety, quality, and delivery, which is reflected in high shop visit growth and strong contract renewal rates.

Risks include supply chain constraints and exposure to cyclical aerospace demand, but GE’s entrenched position, technological breadth, and service-driven model provide a durable moat relative to Pratt & Whitney and Rolls-Royce.