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Strength in Commercial Engines Unit Drives GE Aerospace: A Sign for More Upside?
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Key Takeaways
GE secured more than 650 engine orders in Q1 2026, lifting segment orders 93% to $17.3B.
GE signed a long-term Ryanair agreement and a 10-year support deal with Japan Airlines.
GE plans $1B in U.S. investments and over Eur110M in Europe as mid-teens segment growth is forecast.
GE Aerospace (GE - Free Report) is witnessing strong momentum in its Commercial Engines & Services segment. The company continues to experience strong orders for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities.
In first-quarter 2026, GE secured orders for more than 650 engines, which helped drive a 93% increase in the segment’s orders, reaching $17.3 billion. It also entered into a long-term materials agreement to support Ryanair’s fleet of about 2,000 CFM56 and LEAP engines. The company also recently entered into a 10-year maintenance and overhaul deal with Japan Airlines to offer support services for the latter’s Boeing 787 fleet’s avionics systems.
GE has also been investing in its manufacturing capabilities, MRO facilities and new technologies to meet the growing demand for its engines and services. In 2026, the company plans to invest an additional $1 billion in U.S. manufacturing and technology. Also, in the same period, GE Aerospace plans to invest more than €110 million across its European manufacturing facilities.
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.
GE's Peers in the Aerospace Market
Textron Inc.’s (TXT - Free Report) Aviation business unit is benefiting from improving commercial air passenger traffic. Strong fleet utilization, backed by improving commercial air travel, contributed to Textron Aviation unit’s revenue growth of 22% in the first quarter. Thanks to growing air travel, Textron has also been witnessing strong order activity, which resulted in a backlog of $8 billion (exiting the first quarter) for the Aviation segment.
RTX Corporation (RTX - Free Report) is witnessing persistent 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 strong growth 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 Estimates
Shares of GE Aerospace have gained 9.7% in the past month compared with the industry’s growth of 3.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 39.48X, above the industry’s average of 32.07X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 earnings has up 0.4% over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Strength in Commercial Engines Unit Drives GE Aerospace: A Sign for More Upside?
Key Takeaways
GE Aerospace (GE - Free Report) is witnessing strong momentum in its Commercial Engines & Services segment. The company continues to experience strong orders for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities.
In first-quarter 2026, GE secured orders for more than 650 engines, which helped drive a 93% increase in the segment’s orders, reaching $17.3 billion. It also entered into a long-term materials agreement to support Ryanair’s fleet of about 2,000 CFM56 and LEAP engines. The company also recently entered into a 10-year maintenance and overhaul deal with Japan Airlines to offer support services for the latter’s Boeing 787 fleet’s avionics systems.
GE has also been investing in its manufacturing capabilities, MRO facilities and new technologies to meet the growing demand for its engines and services. In 2026, the company plans to invest an additional $1 billion in U.S. manufacturing and technology. Also, in the same period, GE Aerospace plans to invest more than €110 million across its European manufacturing facilities.
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.
GE's Peers in the Aerospace Market
Textron Inc.’s (TXT - Free Report) Aviation business unit is benefiting from improving commercial air passenger traffic. Strong fleet utilization, backed by improving commercial air travel, contributed to Textron Aviation unit’s revenue growth of 22% in the first quarter. Thanks to growing air travel, Textron has also been witnessing strong order activity, which resulted in a backlog of $8 billion (exiting the first quarter) for the Aviation segment.
RTX Corporation (RTX - Free Report) is witnessing persistent 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 strong growth 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 Estimates
Shares of GE Aerospace have gained 9.7% in the past month compared with the industry’s growth of 3.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 39.48X, above the industry’s average of 32.07X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 earnings has up 0.4% over the past 60 days.
Image Source: Zacks Investment Research
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.