General Electric (GE) Stock Forecast & Price Target

GE Aerospace has demonstrated robust financial performance, with a notable 38% increase in CES equipment revenues and an operating margin of 28.2%, reflecting a significant improvement of 490 basis points. The company's ability to generate recurring service revenue from its extensive global installed base of nearly 70,000 commercial and military engines contributes to a positive outlook, supported by expected delivery ramp-ups for the GE9X engine in the latter half of 2025. Additionally, the rise in military engine deliveries by 20% year-over-year and the recovery in leisure and domestic travel bolsters GE Aerospace's position as a leading supplier in the aviation sector.

GE Aerospace faces significant challenges that contribute to a negative outlook on its stock. A projected slowdown in economic recovery or the risk of a prolonged recession may adversely affect the company's financial performance, particularly as LEAP engine deliveries have decreased by 5% year-over-year, indicating a contraction in demand or operational inefficiencies. Additionally, anticipated delays in engine deliveries due to supply chain issues could hinder profitability for key products like the LEAP engine, with management forecasting new deliveries to be sold at a slight loss in 2025 and only breakeven by 2026.