Core Insights - GE Aerospace has a dominant market position in the aerospace industry, supported by decades of recurring revenue and potential upside from revolutionary technology [1][2] - The company is considered an excellent option for long-term investors, providing a relatively safe investment with exciting growth prospects [2] Market Position - GE Aerospace operates in a highly competitive market with significant barriers to entry, requiring multibillion-dollar investments and expertise, with only three major players: GE Aerospace, RTX's Pratt & Whitney, and Rolls-Royce [3] - GE Aerospace is the leading player, manufacturing engines for key aircraft models, including the sole engine option for the Boeing 737 Max and the upcoming Boeing 777X [6] Revenue Generation - The commercial aerospace engines have a long operational life of about 40 years, generating recurring revenue primarily through maintenance, repair, and overhaul (MRO) services [7] - Approximately 40% of the CFM56 fleet has yet to undergo its first shop visit, indicating substantial future revenue potential [9] Growth Prospects - Management expects LEAP services revenue to match CFM56 services revenue by 2028, indicating a long-term growth trajectory [10] - The company is ramping up LEAP deliveries, with an upgraded estimate for delivery growth to 20% in 2025 [11] Innovative Technology - The long-term growth potential is bolstered by the Revolutionary Innovation for Sustainable Engines (RISE) program, focusing on open fan technology [13][14] - Open fan technology is expected to offer significant advantages in durability and efficiency, with a potential bypass ratio (BPR) exceeding 60, compared to current engines [16][17] Investment Outlook - If the anticipated BPR figures are achieved, RISE technology could solidify GE Aerospace's dominant market position and provide an additional 40 years of lucrative revenue [18]

Core Viewpoint - GE Aerospace is projected to be among the 10 largest defense stocks by 2025, with UBS raising its price target to $366 from $344 while maintaining a Buy rating [1][2]. Group 1: Earnings and Outlook - The price target adjustment by UBS followed GE Aerospace's third-quarter earnings call, where management provided positive commentary and raised the company's outlook for 2025 [2]. - UBS anticipates that GE Aerospace will continue to exceed expectations, despite the company setting a higher performance benchmark for itself [2][3]. Group 2: Market Performance and Analyst Ratings - UBS highlighted the strength of the end markets and commended GE Aerospace's operational performance, although a deceleration in aftermarket growth is expected next year [3]. - RBC Capital reiterated its Outperform rating for GE Aerospace, maintaining a price target of $340 [3]. Group 3: Company Overview - GE Aerospace is a global leader in aerospace propulsion, services, and systems, with an installed base of approximately 25,000 military and 45,000 commercial aircraft engines [4].

Market Performance - The S&P 500 index increased by 2.4% this week, while the Nasdaq rose by 3.9%[1] - Large-cap growth stocks (Russell 1000 Growth) outperformed with a gain of 3.2%, compared to small-cap value (Russell 2000 Value) at +2.5%[1] - The technology hardware and equipment sector led the gains with an increase of 3.9%[1] Fund Flows - Estimated fund flow for S&P 500 components was +$65.6 billion this week, down from +$91.7 billion last week[2] - Semiconductor products and equipment saw the highest inflow at +$22.9 billion, while media and entertainment experienced the largest outflow at -$13.2 billion[2] Earnings Forecast - The forward 12-month EPS estimate for S&P 500 components was revised up by 0.4% this week, consistent with the previous week[3] - The automotive sector saw a significant upward revision of 9.0% in earnings expectations, while durable goods and apparel experienced a downward revision of -0.5%[3] Risk Factors - Key risks include uncertainties in economic fundamentals, international political situations, U.S. fiscal policies, and Federal Reserve monetary policies[3]

GE Aerospace 业绩与展望 - GE Aerospace 实现了强劲的业绩，有机收入增长高达 26% [3] - 公司上调了全年业绩预期 [3] - 商业引擎和服务部门表现出色，设备收入增长 22%，服务收入增长 28% [6] - 内部车间访问收入大幅增长 33% [7] - 预计全年商业引擎服务收入增长率将达到 20% 左右，高于此前预期的 17%-19% [8] - Leap发动机交付量同比增长 40% [11] - 预计全年 Leap 发动机交付量将增长 20% 以上，高于此前预测的 15%-20% [13] GE Aerospace 供应链 - 关键供应商的出货目标持续改善，连续三个季度完成超过 95% 的承诺量 [9] - 供应链的改善有助于 Leap 发动机交付量的增长 [11] GE Vernova 业绩与展望 - GE Vernova 报告了出色的业绩，实现了显著的有机收入增长和利润率上升 [15] - 积压订单同比增长 15%，超过 1350 亿美元 [15] - 新订单额接近 150 亿美元 [15] - 预计到 2030 年，其综合可服务市场将以 10% 的复合年增长率增长，最终翻一番 [20] GE Vernova 战略 - 收购 Prollex 剩余 50% 股权，以扩大在电气化领域的影响力 [18][19] - 认为小型模块化核反应堆是核电领域安全投资的方式 [22] - 今年已回购 22 亿美元的股票，并计划继续择机回购 [23] 市场反应 - 市场对 GE Aerospace 和 GE Vernova 的最初反应不一，但随后股价反弹 [4][16][17] - 认为市场最初低估了两家公司的价值 [24]

Core Viewpoint - The market initially misjudged the performance of GE Aerospace and GE Vernova, both of which reported strong earnings but experienced stock sell-offs before rebounding significantly. Group 1: GE Aerospace - GE Aerospace reported a remarkable 26% organic revenue growth, driven by strong performance in commercial engines, services, and defense sectors [3][6] - The commercial engines and services segment saw a 22% increase in equipment revenue and a 28% rise in services revenue, leading to a 35% growth in earnings for this division [6][7] - Management raised their full-year revenue growth forecast for commercial engines services from high teens to low 20s, indicating positive momentum [8] - Supply chain improvements were noted, with priority suppliers achieving over 95% of committed volumes for three consecutive quarters, contributing to a 40% year-over-year increase in Leap engine deliveries [9][11] - GE Aerospace is positioned to benefit from increased aircraft purchases due to trade dynamics, as evidenced by Korean Air's order for 103 aircraft that will include GE engines [13][14] Group 2: GE Vernova - GE Vernova reported strong organic revenue growth and a 15% year-over-year increase in backlog, reaching over $135 billion [15][16] - The company secured nearly $15 billion in new orders, reflecting robust demand for its products [15][16] - Management's acquisition of the remaining 50% of Prolle aims to enhance exposure to the electrification segment, which is expected to grow significantly [18][20] - The combined serviceable addressable market for GE Vernova is projected to expand at a 10% compound annual growth rate, potentially doubling by 2030 [20] - The company has repurchased $2.2 billion worth of its own stock this year and plans to continue buybacks, indicating confidence in its stock value [23]

Market Performance - GE Aerospace and GE Vernova stocks have increased by over 80% year-to-date, outperforming the market [1] - GE Aerospace experienced initial stock sell-off post earnings, followed by a dramatic rebound [2][4] Financial Highlights - GE Aerospace reported a strong quarter with 26% organic revenue growth [3] - Growth was driven by commercial engines and services, as well as defense and propulsion technologies [3] - Management raised full-year forecast across the board due to strong results [3] Guidance and Outlook - Concerns exist regarding GE Aerospace's implicit guidance for the fourth quarter, potentially due to management conservatism [5] - The company is viewed as well-managed under Larry Cope [5]

Group 1: Company Performance - GE Aerospace and GE Vernova are two of the best performing stocks of the year, each up more than 80% [1] - GE Aerospace reported a remarkable 26% organic revenue growth, driven by strong performance in commercial engines, services, and defense sectors [3] - Management raised their full-year forecast across the board, indicating confidence in future performance [3][5] Group 2: Market Reaction - Despite the strong quarterly results, GE Aerospace's stock initially sold off before rebounding significantly [2][4] - The stock experienced volatility, rallying initially and then declining before a notable rebound of $8.5 [4] - There were mixed reactions from Wall Street regarding the stock's performance following the earnings report [4] Group 3: Management and Guidance - Concerns about GE Aerospace's implicit guidance for the fourth quarter are viewed as management's conservative approach [5] - Larry Cope is highlighted as an effective executive, potentially making GE Aerospace one of the best industrial reports of the year [5]

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.GE Aerospace (NYSE: GE ) once again delivered strong results in the third quarter of 2025, beating analyst estimates on both sales and earnings per share. In my previous coverage , I considered the stock expensive but maintained a BuyDhierin runs t ...

Group 1 - GE Aerospace has shown impressive performance in commercial jet engines and aircraft service, which is a significant revenue driver for the company [1] - The airline industry's robust maintenance needs position GE Aerospace favorably for continued growth, as highlighted by CEO Larry Culp's recent performance [1] - Since spinning off its healthcare and power divisions, GE Aerospace's stock has performed exceptionally well, indicating a strong business focus [2] Group 2 - The aerospace sector is recognized as a phenomenal business, with GE Aerospace being a standout performer in this space [2] - There is a belief that while GE Aerospace has potential, certain AI stocks may offer greater upside potential and lower downside risk [2]

Core Insights - Discussion around buying the post-earnings dip in GE Aerospace and Netflix shares after their Q3 reports is gaining traction, especially given their impressive stock gains of around +300% over the last three years [1] GE Aerospace - GE Aerospace's Q3 sales surged 26% to $11.3 billion from $8.94 billion year-over-year, driven by LEAP engine sales [2] - Earnings for GE Aerospace soared 44% to $1.66 per share, exceeding the Zacks EPS Consensus of $1.46 by 14% [2] - The company raised its full-year 2025 guidance, now expecting adjusted EPS between $6.00-$6.20, up from a previous forecast of $5.90, and projecting mid-teens revenue growth [4] Netflix - Netflix's Q3 sales increased 17% to $11.51 billion from $9.82 billion year-over-year, but slightly missed estimates of $11.52 billion [3] - The company faced a $400 million non-recurring tax expense due to a dispute in Brazil, resulting in Q3 EPS of $5.87, which was 15% below expectations of $6.89 [3] - Netflix raised its full-year revenue growth forecast to approximately 16% from a previous estimate of 14% and increased its operating margin forecast from 21% to 22% [4] Valuation Metrics - GE Aerospace and Netflix are trading at notable premiums to the broader market, with forward P/E ratios of 52X and 47X, respectively [6] - Netflix has a high cash flow per share ratio of 59X, while GE Aerospace's ratio of 8X is above the S&P 500 average of 6X [7] Market Sentiment - Both GE Aerospace and Netflix currently hold a Zacks Rank 3 (Hold), indicating a cautious outlook despite their strong performance and raised guidance [8] - The trend of earnings estimate revisions following their Q3 reports is expected to be positive, particularly for GE Aerospace [9]