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Can GE's Commercial Engines & Services Unit Sustain Its Growth Momentum?
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Key Takeaways
GE's Commercial Engines & Services segment is gaining from strong engine and services demand.
GE secured major GEnx and LEAP orders from airlines including United, Delta, American and Copa.
GE's Q2 engine deliveries rose 26%, while segment revenues and orders climbed 27% and 18%
GE Aerospace (GE - Free Report) is gaining from continued momentum in the Commercial Engines & Services segment. A growing installed base and higher utilization of engine platforms, driven by strong momentum and growth across commercial & defense sectors, are aiding GE. Solid demand for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities, is proving beneficial for the Commercial Engines & Services segment.
In the first half of 2026, GE Aerospace secured several major engine orders and service agreements. GE Aerospace secured GEnx engine orders from United Airlines and Delta Air Lines for their Boeing 787 Dreamliners, while it secured LEAP engine orders from American Airlines and Copa Airlines for their narrowbody fleet. The company also secured an order from Copa Airlines for up to 120 LEAP-1B engines to power the airline's expanding Boeing 737 MAX fleet. GE signed a long-term materials agreement to support Ryanair's fleet of approximately 2,000 CFM56 and LEAP engines.
During 2025, it secured more than 500 engine wins at the Dubai Airshow, including deals from flydubai for GEnx engines and Riyadh Air for LEAP-1A engines. It received an order from Cathay Pacific to power its latest Boeing 777 9 aircraft with GE9X engines. GE Aerospace inked a deal with Qatar Airways to supply more than 400 GE9X and GEnx engines. It represents the largest widebody engine deal in GE Aerospace’s history. The company also secured a deal from International Airlines Group to provide GEnx engines for British Airways’ 32 new Boeing 787 aircraft.
The company is advancing its FLIGHT DECK lean model, with supplier improvements supporting revenue growth in the Commercial Engines & Services segment. In the second quarter of 2026, engine deliveries rose 26% year over year, reflecting improved throughput amid strong customer demand. Segment revenues and orders increased 27% and 18%, respectively, year over year in the second quarter. The Commercial Engines & Services segment is expected to remain a key growth driver, supported by strong engine demand, a growing installed base and higher aircraft utilization.
GE's Peers in the Aerospace Market
Among its major peers, RTX Corporation (RTX - Free Report) is also witnessing solid momentum in the commercial aerospace market, with growth in aftermarket and OEM verticals. RTX reported 16% organic sales growth in the second quarter, driven by solid momentum in the Collins Aerospace and Pratt & Whitney segments. Rising aircraft utilization and demand for sustainable technologies bode well for RTX Corp.’s growth.
Howmet Aerospace Inc. (HWM - Free Report) is benefiting from persistent strength in the commercial aerospace market. Revenues from Howmet’s commercial aerospace market increased 28% year over year in the second quarter of 2026, constituting 53% of its business. Also, in 2025, revenues from the market increased 12% year over year.
GE's Price Performance, Valuation and Estimates
Shares of GE Aerospace have gained 7.2% in the past six months against the industry’s 15.7% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 35.32X, above the industry’s average of 27.81X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 earnings has gone up 0.6% over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Can GE's Commercial Engines & Services Unit Sustain Its Growth Momentum?
Key Takeaways
GE Aerospace (GE - Free Report) is gaining from continued momentum in the Commercial Engines & Services segment. A growing installed base and higher utilization of engine platforms, driven by strong momentum and growth across commercial & defense sectors, are aiding GE. Solid demand for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities, is proving beneficial for the Commercial Engines & Services segment.
In the first half of 2026, GE Aerospace secured several major engine orders and service agreements. GE Aerospace secured GEnx engine orders from United Airlines and Delta Air Lines for their Boeing 787 Dreamliners, while it secured LEAP engine orders from American Airlines and Copa Airlines for their narrowbody fleet. The company also secured an order from Copa Airlines for up to 120 LEAP-1B engines to power the airline's expanding Boeing 737 MAX fleet. GE signed a long-term materials agreement to support Ryanair's fleet of approximately 2,000 CFM56 and LEAP engines.
During 2025, it secured more than 500 engine wins at the Dubai Airshow, including deals from flydubai for GEnx engines and Riyadh Air for LEAP-1A engines. It received an order from Cathay Pacific to power its latest Boeing 777 9 aircraft with GE9X engines. GE Aerospace inked a deal with Qatar Airways to supply more than 400 GE9X and GEnx engines. It represents the largest widebody engine deal in GE Aerospace’s history. The company also secured a deal from International Airlines Group to provide GEnx engines for British Airways’ 32 new Boeing 787 aircraft.
The company is advancing its FLIGHT DECK lean model, with supplier improvements supporting revenue growth in the Commercial Engines & Services segment. In the second quarter of 2026, engine deliveries rose 26% year over year, reflecting improved throughput amid strong customer demand. Segment revenues and orders increased 27% and 18%, respectively, year over year in the second quarter. The Commercial Engines & Services segment is expected to remain a key growth driver, supported by strong engine demand, a growing installed base and higher aircraft utilization.
GE's Peers in the Aerospace Market
Among its major peers, RTX Corporation (RTX - Free Report) is also witnessing solid momentum in the commercial aerospace market, with growth in aftermarket and OEM verticals. RTX reported 16% organic sales growth in the second quarter, driven by solid momentum in the Collins Aerospace and Pratt & Whitney segments. Rising aircraft utilization and demand for sustainable technologies bode well for RTX Corp.’s growth.
Howmet Aerospace Inc. (HWM - Free Report) is benefiting from persistent strength in the commercial aerospace market. Revenues from Howmet’s commercial aerospace market increased 28% year over year in the second quarter of 2026, constituting 53% of its business. Also, in 2025, revenues from the market increased 12% year over year.
GE's Price Performance, Valuation and Estimates
Shares of GE Aerospace have gained 7.2% in the past six months against the industry’s 15.7% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 35.32X, above the industry’s average of 27.81X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 earnings has gone up 0.6% 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.