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Can GE Aerospace Continue Its Robust Capital Returns to Shareholders?
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Key Takeaways
GE returned $7.6B via buybacks and $1.45B in dividends in 2025, up 44% YoY.
GE approved a new $20B buyback plan and raised its dividend by 30.6% in 2026.
GE targets $8.0-$8.4B free cash flow in 2026, supporting future shareholder returns.
GE Aerospace (GE - Free Report) is a leading designer, developer and producer of jet engines, components and integrated systems for military, commercial and business aircraft. Its products and services range from jet engines like LEAP, GE9X & GEnx, airframes, engine gear, and transmission components and services, among others.
The company’s commitment to reward its shareholders through dividends and share buybacks is encouraging. In 2025, it bought back shares for $7.6 billion. In the same period, the company paid dividends of $1.45 billion, up 44% year over year, to its shareholders. In March 2024, the company approved a plan to buy back up to $15 billion of its shares. After the first quarter of 2026, share repurchases will be made under a new $20 billion authorization approved in December 2025.
GE Aerospace also raised its dividend by 30.6% to 36 cents per share in February 2026. The company expects to generate $8.0-$8.4 billion in free cash flow in 2026. Also, from 2024-2026, the company announced its plan to boost total shareholder returns by 20% to approximately $24 billion through a mix of dividends and share repurchases. After 2026, it aims to consistently return at least 70% of its free cash flow each year through both dividends and buybacks.
Do GE’s Peers Focus on Returning Capital to Shareholders?
Honeywell International Inc. (HON - Free Report) paid out dividends worth $2.98 billion and repurchased shares worth $3.8 billion in 2025. In September 2025, Honeywell hiked its quarterly dividend by approximately 5% to $1.19 per share (annually: $4.76). This marks Honeywell’s 16th consecutive dividend hike since 2010.
RBC Bearings Incorporated (RBC - Free Report) remains focused on rewarding its shareholders handsomely through dividends and share buyback programs. RBC Bearings paid preferred stock dividends of $17.2 million and repurchased shares for $9.5 million in fiscal 2025. Also, RBC Bearings repurchased shares worth $11 million and distributed preferred dividends worth $22.9 million in fiscal 2024.
GE's Price Performance, Valuation and Estimates
Shares of GE Aerospace have gained 74.3% in the past year compared with the industry’s growth of 30.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 40.90X, above the industry’s average of 32.52X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 earnings has inched down, while the same for 2027 has increased over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Can GE Aerospace Continue Its Robust Capital Returns to Shareholders?
Key Takeaways
GE Aerospace (GE - Free Report) is a leading designer, developer and producer of jet engines, components and integrated systems for military, commercial and business aircraft. Its products and services range from jet engines like LEAP, GE9X & GEnx, airframes, engine gear, and transmission components and services, among others.
The company’s commitment to reward its shareholders through dividends and share buybacks is encouraging. In 2025, it bought back shares for $7.6 billion. In the same period, the company paid dividends of $1.45 billion, up 44% year over year, to its shareholders. In March 2024, the company approved a plan to buy back up to $15 billion of its shares. After the first quarter of 2026, share repurchases will be made under a new $20 billion authorization approved in December 2025.
GE Aerospace also raised its dividend by 30.6% to 36 cents per share in February 2026. The company expects to generate $8.0-$8.4 billion in free cash flow in 2026. Also, from 2024-2026, the company announced its plan to boost total shareholder returns by 20% to approximately $24 billion through a mix of dividends and share repurchases. After 2026, it aims to consistently return at least 70% of its free cash flow each year through both dividends and buybacks.
Do GE’s Peers Focus on Returning Capital to Shareholders?
Honeywell International Inc. (HON - Free Report) paid out dividends worth $2.98 billion and repurchased shares worth $3.8 billion in 2025. In September 2025, Honeywell hiked its quarterly dividend by approximately 5% to $1.19 per share (annually: $4.76). This marks Honeywell’s 16th consecutive dividend hike since 2010.
RBC Bearings Incorporated (RBC - Free Report) remains focused on rewarding its shareholders handsomely through dividends and share buyback programs. RBC Bearings paid preferred stock dividends of $17.2 million and repurchased shares for $9.5 million in fiscal 2025. Also, RBC Bearings repurchased shares worth $11 million and distributed preferred dividends worth $22.9 million in fiscal 2024.
GE's Price Performance, Valuation and Estimates
Shares of GE Aerospace have gained 74.3% in the past year compared with the industry’s growth of 30.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 40.90X, above the industry’s average of 32.52X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 earnings has inched down, while the same for 2027 has increased over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.