GE Rides on Commercial Engines Unit Strength: Will the Uptrend Continue?

GE Aerospace GE is experiencing persistent strength in its Commercial Engines & Services segment. The company 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 Aerospace secured GEnx engine orders from United Airlines and Delta Air Lines for their Boeing 787 Dreamliners, while CFM International (the 50/50 joint venture between GE and Safran Aircraft Engines) extended its partnership with American Airlines for LEAP engine deliveries. CFM International also entered into a Memorandum of Understanding with IndiGo for delivery of more than 1,000 LEAP-1A engines.

GE Aerospace clinched an order from Jet2 plc to supply CFM LEAP-1A engines for the latter’s Airbus A321neo aircraft. 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 further signed a long-term materials agreement to support Ryanair's fleet of approximately 2,000 CFM56 and LEAP engines.

Driven by strength across its business, revenues from the Commercial Engines & Services segment increased 27% year over year to $9.73 billion in second-quarter 2026. Equipment revenues in the segment advanced 30%, supported by unit volume growth of 26%, including a 24% increase in LEAP deliveries. Total orders in the segment rose 18% year over year to $12.93 billion. For 2026, adjusted revenues from the Commercial Engines & Services segment are expected to grow about 20%.

GE's Peers in the Aerospace Market

Among its major peers, Howmet Aerospace Inc. HWM 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.

RTX Corporation RTX 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.

GE's Price Performance, Valuation and Estimates

Shares of GE Aerospace have gained 4.2% in the past three months against the industry’s 0.7% decline.

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From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 38.40X, above the industry’s average of 31.21X. 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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