Is GE a good stock to buy? We came across a bullish thesis on GE Aerospace on LongYield’s Substack. In this article, we will summarize the bulls’ thesis on GE. GE Aerospace’s share was trading at $303.60 as of April 20th. GE’s trailing and forward P/E were 37.71 and 40.82 respectively according to Yahoo Finance.
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General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and aircraft systems. GE delivered a breakout year in 2025, highlighting the success of its transformation into a pure-play aviation company following the spin-off of its energy and healthcare divisions. The company posted $45.9 billion in full-year revenue, up 18% year-on-year, with GAAP net profit of $10.0 billion (+31%) and free cash flow of $7.7 billion (+24%), reflecting strong earnings quality.
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Its Commercial Engines & Services (CES) segment drove growth, with $32 billion in revenue (+24%) and operating profit of $8.9 billion (+26%), supported by a surge in both engine deliveries and aftermarket services. Record LEAP engine shipments and higher shop visit activity underpinned robust aftermarket momentum, while improved component availability cleared backorders and strengthened service offerings.
CES margins expanded to 26.6% for the full year, demonstrating profitability resilience despite expected mix-related compression in Q4. GE Aerospace’s backlog swelled to roughly $190 billion, fueled by new engine orders and long-term service agreements, highlighting strong commercial demand. Strategic initiatives, including the integration of Technology & Operations into CES and organizational realignment under new leadership, are designed to enhance end-to-end lifecycle management, improve customer responsiveness, and support future innovation.
The Defense & Propulsion Technologies segment also contributed solidly, with revenue of $12.2 billion (+11%) and backlog growth to $21 billion, driven by military engine deliveries and higher-volume production at Avio Aero.
With operational execution, a growing installed base of over 38,000 engines, and favorable industry tailwinds, GE Aerospace is positioned to continue capturing aftermarket growth and new engine demand. Investors can view the company as a compelling bullish opportunity, given its strong free cash flow generation, robust backlog, and the potential for continued margin expansion and value creation in both commercial and defense segments.
Previously, we covered a bullish thesis on GE Aerospace (GE) by Asymmetric Ventures in May 2025, which highlighted its market-leading MRO services, global service network, and strong competitive moats. GE’s stock price has appreciated by approximately 25.56% since our coverage. LongYield shares a similar view but emphasizes GE’s 2025 breakout as a pure-play aerospace company, driven by record engine shipments, CES growth, and organizational realignment.
GE Aerospace is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 117 hedge fund portfolios held GE at the end of the fourth quarter which was 102 in the previous quarter. While we acknowledge the risk and potential of GE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GE and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
