Core Viewpoint - GE Aerospace stock has achieved a remarkable 70% return over the past twelve months, driven by its successful transition into a standalone aviation leader and increasing global demand in the aerospace sector [2] Financial Strength - GE demonstrates high profit margins and consistent, healthy cash flow, indicating strong financial health [3] - The company maintains a disciplined, low-debt capital structure, contributing to its balance sheet strength [3] Market Position and Growth Potential - GE's substantial backlog of approximately $190 billion and service strengths are seen as critical in countering anticipated growth slowdowns and operational risks [6] - The Commercial Engines & Services (CES) revenue increased by 24% in 2025, with the services segment growing at an even higher rate of 26% [7] - The installed base of over 45,000 commercial engines provides a solid foundation for recurring service revenue [7] Revenue and Profitability Metrics - GE Aerospace experienced revenue growth of 18.5% in the last twelve months and an average of 18.3% over the past three years [7] - The average operating cash flow margin was about 14.4%, and the operating margin was 15.5% over the last three years, indicating long-term profitability [7] Market Sentiment and Future Outlook - The stock is currently trading 0.8% below its 52-week high, reflecting strong momentum [7] - FY26 guidance indicates a shift to 'low double-digit' growth, a significant slowdown from 18% in FY25, raising concerns about future performance [8] - The record backlog and increasing high-margin services revenue (+31% YoY) provide multi-year earnings visibility, despite temporary operational challenges [8]