Fourth Quarter and Full Year 2025 Earnings February 3, 2026 ATI Proprietary and Confidential ©2025 ATI. All rights reserved. Proven to perform anywhere. 1 Forward Looking Statements This presentation contains forward-looking statements. Forward-looking statements, which may contain such words as "anticipates," "believes," "estimates," "expects," "would," "should," "will," "will likely result," "forecast," "outlook," "projects," and similar expressions, are based on management's current expectations. Actual ...

Company Overview - GE Aerospace (NYSE:GE) is a jet engine manufacturer with shares increasing by 45% over the past year, although they have decreased by 6.8% year-to-date [2]. Analyst Ratings - JPMorgan raised the share price target for GE Aerospace to $335 from $325, maintaining an Overweight rating, citing the CFM56 high-bypass engine as a key driver for stable long-term growth [2]. - UBS also maintained a Buy rating and increased the share price target to $374 from $368, following GE Aerospace's fourth quarter earnings, which indicated solid fundamentals [2]. Market Sentiment - Despite a stock decline after earnings, Jim Cramer defended GE Aerospace, highlighting the company's resolution of several issues and suggesting it represents a significant buying opportunity [3].

Core Insights - GE Aerospace reported strong Q3 earnings, leading to a 75% year-to-date stock gain, ranking it first among 79 stocks in the Industrial Select Sector SPDR Fund and 15th in the S&P 500 [1] - Despite an initial 4.5% rally post-earnings, the stock faced selling pressure, dropping below $300 after reaching an all-time high of $315 [2] - The company has consistently exceeded sales estimates in 13 of the last 20 quarters and EPS estimates in 12 consecutive quarters, indicating strong operational performance [3] Analyst Sentiment - Following the Q3 results, at least five analysts revised their estimates, raising the average price target to $331, suggesting an 11% upside from the recent closing price, with the most optimistic target at $375 for a potential 25% gain [4] - Currently, 14 of 16 analysts covering GE rate it as a buy or strong buy, indicating strong market confidence despite a recent 2.8% decline, the largest in two months [5] Investment Considerations - Long-term investors are encouraged to consider any stock weakness as a buying opportunity to initiate or increase their positions in GE Aerospace [5] - While GE Aerospace has shown strong performance, it was not included in a list of the top 10 stocks recommended by The Motley Fool Stock Advisor, which may suggest alternative investment opportunities [6]

Core Insights - French aerospace group Safran raised its full-year forecasts following higher-than-expected third-quarter revenues, primarily driven by its core jet engine division [1] Financial Performance - Safran's third-quarter revenues exceeded expectations, indicating strong performance in its jet engine segment [1]

Core Insights - The growth in global air travel and rising defense spending are driving demand for advanced jet engines, benefiting Rolls-Royce Holdings plc (RYCEY) [1] - RYCEY's Trent family of engines plays a major role in widebody aircraft programs, particularly in the commercial aviation sector [1][9] Commercial Segment - RYCEY's Trent XWB powers the Airbus A350, recognized as one of the most efficient widebody aircraft [2] - Airlines are investing in fuel-efficient engines to modernize their fleets and lower operating costs, leading to strong demand for RYCEY's Trent 1000 and Trent 7000 engines [2] - The Civil Aerospace business delivered double-digit revenue growth in the first half of 2025, supported by a large order backlog of over 2,000 engines in the widebody segment as of July 2025 [3][9] Defense Segment - Rolls-Royce manufactures engines for military aircraft, including the EJ200 for the Eurofighter Typhoon and engines for the C-130J Super Hercules and V-22 Osprey [4] - Increased geopolitical tensions and rising European defense spending are expected to sustain demand for these defense engines in the long term [4] Strategic Partnerships - In September 2025, Rolls-Royce expanded its partnership with Avio Aero and IHI to develop next-generation fighter engines under the Global Combat Air Programme, highlighting its role in future combat air propulsion technology [5] Industry Comparisons - Other jet engine manufacturers like GE Aerospace and RTX Corporation are also experiencing solid order flows due to the same demand trends [6] - GE Aerospace signed an extended services agreement with Silk Way West Airlines for various Boeing aircraft [6] - RTX secured contracts totaling $730.2 million for the F135 propulsion system supporting the F-35 Joint Strike Fighter program [7] Stock Performance - RYCEY shares have surged 124.5% over the past year, outperforming the industry's growth of 36.6% [8] - The company's shares are trading at a relative discount, with a forward 12-month Price/Earnings ratio of 36.51X compared to the industry's average of 48.05X [10] - The Zacks Consensus Estimate for RYCEY's earnings for 2025 and 2026 has improved over the past 60 days [11]