GE Aerospace: Overlooked defense exposure to drive meaningful growth

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GE Aerospace: Overlooked defense exposure to drive meaningful growth

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GE Aerospace

Overlooked defense exposure to drive

meaningful growth

Maintain Rating: BUY | PO: 365.00 USD | Price: 298.72 USD

GE Defense day in Lynn, MA 20 May 2026

Yesterday, we toured GE Aerospace's Lynn, MA facility. The site has a history dating Equity

back more than 130 years, is recognized as home to the first US jet engine. The day was

focused on GE's Defense & Propulsion Technologies (DPT). Management (CEO Larry Ronald J. Epstein Research Analyst

Culp, CFO Rahul Ghai, President of Defense and Systems Amy Gowder, and President of BofAS

Propulsion and Additive Technologies Ricardo Procacci) discussed their strategy for DPT +1r.epstein@bofa.com646 855 5695

today, the near term and the decades to come. We maintain our Buy rating and $365 PO. Mariana Perez Mora

Research Analyst

2026 is off to a strong start BofAS+1 646 855 5696

GE's DPT engines power 2/3rds of all US military combat and helicopter fleets. DPT also mariana.perezmora@bofa.com

produces transmissions, turbines, electro-mechanical controls and additive machines and Jordan Lyonnais

powder. The segment generated Ş12.2bn in revenue in 2025 and boasts a $30bn backlog BofAS

(with book-to-bill >1x for seven consecutive quarters). The strong start of the year, from jordan.lyonnais@bofa.com

both performance and demand, positions DPT to be on track towards the higher end of Alexander Preston

the mid-to-high single-digit revenue growth outlook in 2026. BofAS

alexander.preston@bofa.com

DPT to grow HSD through 2028, margins to expand

The HSD revenue growth outlook through 2028 is supported by mid-teens growth from

FMS and international programs, double digit growth in aeroderivative engines and Stock Data