3 Reasons to Be Very, Very Excited About GE Aerospace Stock Right Now

Core Viewpoint - General Electric has transformed into GE Aerospace, a promising business focused on jet engines and services, following a significant corporate restructuring after the Great Recession [1] Group 1: Business Model - GE Aerospace operates a recurring revenue business model, where maintenance services for jet engines contribute significantly to revenue [2] - Approximately 70% of GE Aerospace's overall revenue comes from services, with nearly three-quarters from commercial sales and just over half from military sales [3][4] Group 2: Current Performance - In Q2 2025, GE Aerospace reported a 23% increase in adjusted revenue, a 38% rise in adjusted earnings, and a remarkable 92% growth in free cash flow [5] - The company has raised its full-year guidance for 2025 and extended its outlook through 2028, indicating stronger fundamental business health than previously anticipated [7] Group 3: Future Prospects - GE Aerospace has a substantial backlog of $175 billion, representing contracted work yet to be completed, which includes both jet engine sales and services [8]