GE Aerospace's Commercial Engines Unit Gains Momentum: Can It Sustain?

The strongest driver of GE Aerospace’s GE business at the moment is the Commercial Engines & Services segment. Organic revenues from the segment increased 24% year over year in the fourth quarter of 2025, constituting more than 75% of its business. Also, in the fourth quarter, orders in the segment rose 76% year over year to $22.8 billion.GE Aerospace is benefiting from a growing installed base and higher utilization of engine platforms, driven by strong momentum and growth across commercial & defense sectors. Solid demand for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities, is proving beneficial for the Commercial Engines & Services business.During 2025, the company secured more than 500 engine wins at the Dubai Airshow, including deals from flydubai for GEnx engines and Riyadh Air for LEAP-1A engines. It received an order from Cathay Pacific to power their latest Boeing 777 9 aircraft with GE9X engines.This apart, GE Aerospace inked a deal with Qatar Airways to supply more than 400 GE9X and GEnx engines. It represents the largest widebody engine deal in GE Aerospace’s history.With both commercial and military aircraft programs expected to continue benefiting from strength in air travel and defense budgets, GE is poised to maintain strong demand momentum in the quarters ahead.GE's Peers in the Aerospace MarketAmong its major peers, Howmet Aerospace Inc. HWM is benefiting from persistent strength in the commercial aerospace market. Revenues from the commercial aerospace market increased 15% year over year (exceeding $1.1 billion) in the third quarter of 2025, constituting 53% of its business. Also, in the first and second quarters, revenues from the market increased 9% and 8% year over year, respectively.Its another peer, RTX Corporation RTX is benefiting from strength in the commercial aerospace market, with growth in both aftermarket and OEM verticals. RTX reported 12.1% sales growth in the third quarter, driven by solid momentum in the Collins Aerospace and Pratt & Whitney segments. Rising aircraft utilization and demand for sustainable technologies are supporting RTX Corp.’s growth.GE's Price Performance, Valuation and EstimatesShares of GE Aerospace have surged 49.7% in the past year compared with the industry’s growth of 29.5%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 40.81X, above the industry’s average of 32.60X. GE Aerospace carries a Value Score of F.Image Source: Zacks Investment ResearchThe Zacks Consensus Estimate for GE’s 2026 and 2027 earnings has been on the rise over the past 60 days.Image Source: Zacks Investment ResearchThe company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GE Aerospace (GE): Free Stock Analysis Report Howmet Aerospace Inc. (HWM): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks