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Can GE's Growth Investments Create Long-Term Value for Investors?
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Key Takeaways
GE plans to invest more than $1B in global MRO facilities over the next few years.
GE will invest another $1B in U.S. manufacturing and technology during 2026.
GE expects 2026 adjusted revenue growth led by commercial engines and defense businesses.
GE Aerospace (GE - Free Report) has been making significant investments in its manufacturing facilities to boost growth. The company has been on track to invest more than $1 billion in its Maintenance, Repair and Overhaul (MRO) facilities around the world over the next few years. This includes the acquisition of a dedicated LEAP test cell, which will unlock a major constraint in its shop visit output. The company is also expanding several MRO facilities, including Dallas, Malaysia and Celma and a new on-wing support site in Dubai.
In 2026, GE Aerospace plans to invest an additional $1 billion in U.S. manufacturing and technology. Also, it decided to invest more than €110 million across its European manufacturing facilities this year. These investments will allow the company to boost its operational capacities, introduce new technologies to further reduce turnaround time and costs and provide better customer services.
Also, the company plans to invest up to $300 million over five years (2025-2029) to boost engine repair capabilities in Singapore. It has a strong pipeline of MRO contracts from several customers like Airbus, El Al Israeli Airlines, Royal Jordanian, flydubai and China Airlines.
GE’s continued investment activities, driven by a strong pipeline of projects, are expected to drive its long-term growth. For 2026, the company expects adjusted revenues to increase in the low-double-digit range. This includes mid-teens growth in the commercial engines and services unit and mid-to-high single-digit growth in the defense and propulsion technologies unit.
Notable Investments of GE’s Peers
RTX Corporation’s (RTX - Free Report) Collins Aerospace business recently committed an investment of $26.5 million for the expansion of its Largo, FL, facility. With the investment, RTX will boost the production and delivery of commercial aviation radars and security solutions for its defense clients.
In January 2026, L3Harris Technologies, Inc. (LHX - Free Report) proposed a first-of-its-kind partnership with the U.S. Department of War. The proposed deal will involve the government investing $1 billion in its Missile Solutions unit through a convertible preferred security to expand solid rocket motor production capacity.
GE's Price Performance, Valuation and Estimates
Shares of GE Aerospace have increased 31.4% in the past year compared with the industry’s growth of 3.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 40.39X, above the industry’s average of 32.78X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 and 2027 earnings has been on the rise over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Can GE's Growth Investments Create Long-Term Value for Investors?
Key Takeaways
GE Aerospace (GE - Free Report) has been making significant investments in its manufacturing facilities to boost growth. The company has been on track to invest more than $1 billion in its Maintenance, Repair and Overhaul (MRO) facilities around the world over the next few years. This includes the acquisition of a dedicated LEAP test cell, which will unlock a major constraint in its shop visit output. The company is also expanding several MRO facilities, including Dallas, Malaysia and Celma and a new on-wing support site in Dubai.
In 2026, GE Aerospace plans to invest an additional $1 billion in U.S. manufacturing and technology. Also, it decided to invest more than €110 million across its European manufacturing facilities this year. These investments will allow the company to boost its operational capacities, introduce new technologies to further reduce turnaround time and costs and provide better customer services.
Also, the company plans to invest up to $300 million over five years (2025-2029) to boost engine repair capabilities in Singapore. It has a strong pipeline of MRO contracts from several customers like Airbus, El Al Israeli Airlines, Royal Jordanian, flydubai and China Airlines.
GE’s continued investment activities, driven by a strong pipeline of projects, are expected to drive its long-term growth. For 2026, the company expects adjusted revenues to increase in the low-double-digit range. This includes mid-teens growth in the commercial engines and services unit and mid-to-high single-digit growth in the defense and propulsion technologies unit.
Notable Investments of GE’s Peers
RTX Corporation’s (RTX - Free Report) Collins Aerospace business recently committed an investment of $26.5 million for the expansion of its Largo, FL, facility. With the investment, RTX will boost the production and delivery of commercial aviation radars and security solutions for its defense clients.
In January 2026, L3Harris Technologies, Inc. (LHX - Free Report) proposed a first-of-its-kind partnership with the U.S. Department of War. The proposed deal will involve the government investing $1 billion in its Missile Solutions unit through a convertible preferred security to expand solid rocket motor production capacity.
GE's Price Performance, Valuation and Estimates
Shares of GE Aerospace have increased 31.4% in the past year compared with the industry’s growth of 3.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 40.39X, above the industry’s average of 32.78X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 and 2027 earnings has been on the rise 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.