GE
GE Aerospace
Industrials · Aerospace & Defense · United States · Stock
Score Breakdown
Scored for Speculative Opportunities profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The growth factor was a primary driver, with double-digit revenue growth and even faster net income and EPS expansion in FY2025 reflecting strong operating leverage.
- The dividend factor contributed meaningfully, as the combination of rapidly rising dividends per share and a low 16.7% payout ratio signals both shareholder commitment and financial headroom.
- Quarterly momentum through 2025Q4 was strong across revenue, operating income, and net income, though the 2026Q1 pullback across all three metrics moderated the momentum contribution.
Why Not Higher
- The financial health factor scored lower relative to other factors, with a debt-to-equity ratio of 1.1 and a return on assets of only 6.7% in FY2025 tempering the overall composite.
- The absence of any macro theme assignment means GE Aerospace received zero thematic tailwind credit, which structurally limits the total score under the current model methodology.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $38,702,000,000 to FY2025's $45,855,000,000, a gain of +18.5%. Net income rose +32.8% over the same period, and diluted EPS expanded +35.9% from FY2024 to FY2025.
The model rewarded the combination of double-digit top-line expansion and even faster bottom-line and per-share growth, which signals improving operating leverage and efficiency alongside volume gains.
In FY2025, GE Aerospace posted an operating margin of 21.8%, a net margin of 19.0%, and a return on assets of 6.7%.
The model recognized healthy margin levels, particularly the operating and net margins above 19%, though the relatively moderate return on assets of 6.7% in FY2025 likely tempered the score below the maximum.
Filing evidence currently available does not support a more specific explanation for this factor.
Revenue trended upward from 2025Q2's $11,023,000,000 through 2025Q4's $12,716,000,000 before a modest pullback to $12,392,000,000 in 2026Q1. Operating income followed a similar arc, rising from $2,389,000,000 in 2025Q2 to $2,851,000,000 in 2025Q4, then easing to $2,198,000,000 in 2026Q1. Net income showed the same pattern, peaking at $2,541,000,000 in 2025Q4 before declining to $1,904,000,000 in 2026Q1.
The model rewarded the sustained multi-quarter build through 2025Q4 across revenue, operating income, and net income, while the 2026Q1 pullback across all three metrics likely prevented a higher score.
Dividends per share rose from $0.32 in both FY2022 and FY2023 to $1.12 in FY2024 and $1.44 in FY2025, while the FY2025 payout ratio stood at 16.7% of net income.
The model rewarded the meaningful step-up in per-share dividends alongside a low payout ratio in FY2025, which signals that distributions are well-covered by earnings and leave substantial room for continued growth.
GE Aerospace is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment means the security did not qualify for any thematic tailwind credit under the current methodology; this reflects the model's classification state and should not be read as a commentary on the company's business positioning.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
GE Aerospace delivered strong FY2025 results, with revenue rising 18.5% to $45.9 billion and net income growing 32.8%, reflecting meaningful operating leverage as bottom-line growth outpaced top-line expansion. Profitability metrics were healthy, with an operating margin of 21.8% and a net margin of 19.0% in FY2025, though return on assets of 6.7% was more moderate. Quarterly momentum built steadily through 2025Q4 before a modest pullback in 2026Q1 across revenue, operating income, and net income. The dividend profile is a standout, with dividends per share rising from $0.32 in FY2022 to $1.44 in FY2025 at a conservative 16.7% payout ratio, leaving substantial room for continued distribution growth.
Plain English
GE Aerospace is growing fast — revenue jumped nearly 19% last year and profits grew even faster — while paying a rising dividend that still only uses about 17 cents of every dollar earned, suggesting the company has plenty of financial cushion.
Bull Case vs. Bear Case
Bull Case
- Revenue grew 18.5% year-over-year to $45.9 billion in FY2025, while net income surged 32.8% and diluted EPS expanded 35.9%, demonstrating strong operating leverage where profits are growing much faster than sales.
- Operating and net margins of 21.8% and 19.0% respectively in FY2025 reflect a highly profitable business model capable of converting a significant share of revenue into earnings.
- Dividends per share have grown from $0.32 in FY2022 to $1.44 in FY2025, with a payout ratio of only 16.7%, signaling that distributions are well-covered and have substantial room to continue growing.
Bear Case
- All three key quarterly metrics — revenue, operating income, and net income — pulled back in 2026Q1 after peaking in 2025Q4, introducing uncertainty about whether the prior growth trajectory will resume.
- The financial health factor scored notably lower than other factors, and the debt-to-equity ratio stood at 1.1 in FY2025, indicating a leveraged balance sheet that warrants monitoring.
- GE Aerospace is not assigned to any of the 24 tracked macro themes, meaning it receives no thematic tailwind credit under the current model methodology, which limits its composite score ceiling.
What Could Change the Picture
Bullish Triggers
- A sustained reacceleration in revenue and operating income in subsequent quarters beyond 2026Q1 would suggest the pullback was temporary and that the multi-quarter growth trend remains intact.
- A reduction in the debt-to-equity ratio or improvement in return on assets above 6.7% would strengthen the financial health picture and could support a more favorable overall assessment.
Bearish Triggers
- If the 2026Q1 pullback in net income from $2.54 billion to $1.90 billion deepens in future quarters, it would signal that the peak profitability seen in 2025Q4 may not be sustainable.
- A meaningful increase in the payout ratio well above the current 16.7% without corresponding earnings growth could raise concerns about dividend sustainability and capital allocation discipline.
Risk Profile
High RiskThe debt-to-equity ratio of 1.1 in FY2025 indicates a leveraged balance sheet, and the 2026Q1 pullback in revenue, operating income, and net income from their 2025Q4 peaks introduces near-term execution uncertainty. These factors together support the High risk rating assigned to this security.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.