Strength in Commercial Engines Unit Drives GE Aerospace: Can It Sustain?

A growing installed base and higher utilization of engine platforms, particularly in the commercial aerospace sector, have set the stage for the company’s long-term growth. GE continues to experience strong orders for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities.

In the first half of 2026, the company secured several major engine orders and service agreements. GE recently clinched an order from Jet2 plc to supply CFM LEAP-1A engines for the latter’s Airbus A321neo aircraft. It secured an order from Copa Airlines for up to 120 LEAP-1B engines to power the airline's expanding Boeing 737 MAX fleet. 

It also entered into a long-term materials agreement to support Ryanair’s fleet of about 2,000 CFM56 and LEAP engines. It also secured orders for GEnx engines from United Airlines and Delta Air Lines for their Boeing 787 Dreamliners.

With commercial aircraft programs expected to continue benefiting from the strength in air travel, GE is poised to maintain strong demand momentum in the quarters ahead. For 2026, adjusted revenues from the Commercial Engines & Services segment are expected to experience growth of about 20%.

GE's Peers in the Aerospace Market

Among its major peers, RTX Corporation RTX is benefiting from strength in the commercial aerospace market, with growth in both 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 are supporting RTX Corp.’s growth.

Another peer, Textron Inc.’s TXT Aviation business unit is benefiting from improving commercial air passenger traffic. Strong commercial aircraft demand and aftermarket activity contributed to Textron Aviation unit’s revenue growth of 1% in the second quarter. Thanks to growing air travel, Textron has also been witnessing strong order activity, which resulted in a backlog of $8 billion (as of July 4, 2026) for the Aviation segment.

GE's Price Performance, Valuation and Estimates

Shares of GE Aerospace have gained 23.4% in the past three months compared with the industry’s growth of 8.6%.

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From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 44.20X, above the industry’s average of 34.03X. GE Aerospace carries a Value Score of D.

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The Zacks Consensus Estimate for GE’s 2026 earnings has gone up 5.1% over the past 60 days.

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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.

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This article originally published on Zacks Investment Research (zacks.com).

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