Key insights
- GE Aerospace's commercial engine segment is experiencing strong growth, driven by increased air traffic and fleet renewal. Orders are up significantly, and the company has secured major deals with airlines. This positive trend suggests continued growth for GE and potentially positive sentiment for the broader aerospace sector, although the impact on overall US equities is moderate.
GE Aerospace GE is witnessing persistent strength in its Commercial Engines & Services segment. In first-quarter 2026, revenues from the segment increased 34% year over year to $8.9 billion. Also, in the quarter, the segment’s orders witnessed an increase of 93% year over year, which totaled $17.3 billion.A growing installed base and higher utilization of engine platforms, particularly in commercial & defense sectors, have set the stage for the company’s long-term growth. GE continues to experience strong orders for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities.In the first quarter, the company received orders for more than 650 commercial engines, including commitments from American Airlines, United Airlines and Delta Airlines. It also entered into a long-term materials agreement to support Ryanair’s fleet of about 2,000 CFM56 and LEAP engines.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. GE Aerospace also inked a deal with Qatar Airways to supply more than 400 GE9X and GEnx engines. It represents the largest widebody engine deal in GE’s history.Solid demand for commercial engines and aftermarket services, with strength in air travel, will augur well for the segment in the quarters ahead. For 2026, adjusted revenues from the commercial engines and services unit are expected to experience mid-teens growth.
Among its major peers, Howmet Aerospace Inc. HWM is benefiting from solid momentum in the commercial aerospace market. Revenues from Howmet’s commercial aerospace market increased 20% year over year (exceeding $1.1 billion) in the first quarter of 2026, constituting 53% of its business. The sustained strength was attributed to increasing demand for Howmet’s engine spares and a record backlog for new, more fuel-efficient aircraft.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 10% organic sales growth in the first 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.
Shares of GE Aerospace have surged 33.2% in the past year compared with the industry’s growth of 7.9%.
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From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 37.70X, above the industry’s average of 32.27X. GE Aerospace carries a Value Score of D.
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The Zacks Consensus Estimate for GE’s 2026 earnings has up 0.3% over the past 60 days.
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The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
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