GE Aerospace (GE) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: GE Aerospace

Updated on October 21, 2026 · accounts published on October 20, 2026

A business with record margins and fast-growing earnings

GE Aerospace trades at a P/E of 36.2 over the last 12 months, 40 % above its sector median of 25.8, with EPS up 36 % in a year.

• Is GE Aerospace expensive or cheap? At a P/E of 36.2, GE Aerospace trades 40 % above the 25.8 median of its sector over the last 12 months.
• How is the business doing? GE Aerospace's 19.1 % operating margin in fiscal 2025 was its highest in 12 years, double its 9.4 % average for 2014-2025.
• How strong is the balance sheet? Net debt is only 0.7× EBITDA in fiscal 2025: $8.38 per share, or 2.7 % of the current share price.
• What to expect from the next earnings? Analysts expect EPS of $2.02 for the quarter GE Aerospace reports on January 28, 2027, after 8 straight beats.
• Does GE Aerospace turn its margin into cash, and at what multiple of the cycle does it trade? Fiscal 2025 free cash flow was 83.5 % of net income, just under the 85 % healthy mark for industrials.

Is GE Aerospace expensive or cheap?

Over the last 12 months GE Aerospace trades at a P/E of 36.2, 40 % above the 25.8 median of its 404-company sector, and at 25.0× EV/EBITDA. Each dollar paid for the stock buys 3.6 cents of earnings and 3.0 cents of free cash flow, which are thin yields for an industrial. Its own history gives mixed signals. The P/E sits far below its six-year average of 220.6, an average distorted by years of very low earnings, while EV/EBITDA is well above its six-year average of 16.6×. The stock is down 0 % in 12 months and trades 18 % below its 52-week high of $381.22.

How is the business doing?

Growth is strong over the last 12 months: revenue rose 18.5 % and EPS 36 %, so profit is growing about twice as fast as sales. The operating margin stands at 19 %, against an average of 9.4 % for fiscal 2014-2025. The 51 % ROE looks spectacular, but a small equity base inflates it: the stock trades at 17.8× book value. Returns on capital are more modest. A ROIC of 10.0 % beats the 9.0 % sector median by only 1 point, falls short of the 15 % that marks a healthy industrial, and has not topped 10 % in any of the last 10 fiscal years.

How strong is the balance sheet?

Debt is not a worry. In fiscal 2025, net debt of $8.38 per share ($20.00 of debt minus $11.61 of cash) equals 0.7× EBITDA, far below the 3× ceiling considered healthy for industrials. The Altman Z of 3.3 over the last 12 months sits in the safe zone. Two figures deserve a look: debt/equity is 1.10, and a current ratio of 0.98 means short-term assets fall just short of short-term liabilities. The Piotroski score of 5 out of 9 is middling. Shareholders receive little in cash: the dividend yields 0.6 %, and the payout ratio was 17 % of fiscal 2025 earnings.

What to expect from the next earnings?

GE Aerospace has beaten EPS estimates in 8 of the last 8 quarters. On October 20, 2026 it reported $2.25 per share against $2.01 expected, an 11.9 % surprise. The next report, due January 28, 2027, is expected to show EPS of $2.02, below the quarter just published. Over the last 30 days the 2026 EPS consensus barely moved, from $7.92 to $7.94 across 13 analysts, and revenue forecasts held steady too. Of the 35 analysts covering the company, 24 rate it a buy, 11 a hold and none a sell.

Does GE Aerospace turn its margin into cash, and at what multiple of the cycle does it trade?

Industrials are semicyclical, so profit in a strong year can flatter the picture. That is why this sector is judged by operating margin, by how much of that margin turns into free cash flow, and by multiples measured across the cycle. GE Aerospace passes on margin, with 19.1 % in fiscal 2025 against a healthy threshold of 12 %. On cash it sits right at the limit, converting 83.5 % of net income into free cash flow against an 85 % bar. Capex was 2.8 % of revenue, below the usual 4-8 % range, and revenue per share fell 9.1 % a year over fiscal 2020-2025. Cycle-adjusted EV/EBITDA of 25.1× is well above its 16.6× six-year average.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.