Recent developments highlight strong commercial engine demand, management's response to pricing concerns, and ongoing order backlog growth.

• Delta Air Lines selected GE Aerospace GEnx engines to power new 787-10 aircraft, indicating continued commercial engine demand [N1].
• GE Aerospace CEO publicly pushed back against airline concerns regarding engine pricing power, reflecting active management of customer relations [N2].
• The company’s outlook has been described as outpacing estimates due to resilient air travel demand, supporting business momentum [N1].
• Order backlogs and remaining performance obligations increased as of December 31, 2024, driven by contract modifications and engines under long-term service agreements [S1].
• The company completed spin-offs of GE HealthCare and GE Vernova, which involve certain tax and operational risks [S1].

The company benefits from resilient demand in commercial air travel and defense sectors, as evidenced by increasing order backlogs and contract modifications. Its ability to secure new engine selections, such as Delta Air Lines' choice of GEnx engines, demonstrates market acceptance and product competitiveness. Management's active engagement on pricing power issues suggests a focus on maintaining profitability. The spin-offs of GE HealthCare and GE Vernova allow GE Aerospace to concentrate on its core aerospace business, potentially enhancing operational focus and capital allocation [N1][N2][S1].

Risks include potential tax liabilities and operational challenges related to recent spin-offs of GE HealthCare and GE Vernova. Customer concentration, particularly reliance on U.S. Government agencies, may expose the company to budgetary and political risks. Pricing pressures from airlines and competitive dynamics in the aerospace industry could impact margins. The complexity of long-term service agreements and contract modifications requires effective execution to realize expected revenues. Liquidity ratios near 1.0 indicate limited cushion against short-term obligations [S1][N2].

GE Aerospace's moat is supported by its technological expertise in aircraft engine manufacturing, long-term service agreements that create recurring revenue streams, and strong relationships with major customers including government agencies and leading airlines. The company's extensive order backlog and remaining performance obligations provide revenue visibility. The complexity and certification requirements of aerospace engines create high barriers to entry for competitors, reinforcing its competitive position.

• Spin-off related risks: The recent spin-offs of GE HealthCare and GE Vernova entail risks including potential tax liabilities and operational disruptions if the transactions are determined to be taxable or if integration challenges arise [S1].
• Customer concentration: Significant reliance on U.S. Government agencies and major airline customers exposes the company to risks from changes in government spending, regulatory policies, and airline industry dynamics [S1].
• Pricing pressure: Airlines have expressed concerns about engine pricing power, which the company is actively addressing. Pricing pressures could affect profitability if not managed effectively [N2].
• Execution of long-term contracts: The company’s revenue depends on successful execution of long-term service agreements and contract modifications. Delays or cost overruns could impact financial results [S1].
• Liquidity constraints: Current ratio of 1.08 and cash ratio of 1.16 as of Q3 2025 indicate limited liquidity buffer, which may constrain flexibility in adverse conditions [S2].

• GE Aerospace operates in the Industrials sector within Specialty Industrial Machinery industry.
• The company manufactures commercial and defense aircraft engines and related products and services.
• Revenue for the quarter ended September 30, 2025, was $12.181 billion, with net income of $2.157 billion and basic EPS of $2.04, as per the 10-Q filed on 2025-10-21 [S2].
• As of September 30, 2025, current assets were $40.074 billion and current liabilities were $37.203 billion, yielding a current ratio of 1.08 and a cash ratio of 1.16 [S2].
• Cash and cash equivalents were $43.299 billion as of December 31, 2017, per the 10-K filed on 2018-02-23 [S1].
• GE Aerospace's business includes long-term service agreements and contract modifications that have increased remaining performance obligations (RPO) by $17.6 billion as of December 31, 2024, reflecting strong order backlog in Commercial Engines & Services and Defense & Propulsion Technologies [S1].
• Revenue recognition for equipment occurs at the point in time when control transfers to the customer, generally upon physical possession or customer acceptance [S1].
• The company has significant customer concentration with U.S. Government agencies as major customers [S1].
• Recent news highlights include Delta Air Lines selecting GE Aerospace GEnx engines for new 787-10 aircraft, indicating ongoing commercial engine demand [N1].
• The CEO has publicly addressed concerns about engine pricing power raised by airlines, indicating active management of customer relations and pricing strategy [N2].
• The company completed spin-offs of GE HealthCare and GE Vernova, which entail certain tax and operational risks [S1].
• Liquidity and capital resources disclosures indicate ongoing capital contributions to insurance subsidiaries and management of debt maturities [S1].