GE Aerospace: Strong albeit decelerating results, conservative guide

研报英文原文证据摘录

GE Aerospace: Strong albeit decelerating results, conservative guide

Global Research

16 July 2026ab

First Read

EquitiesGE Aerospace

Strong albeit decelerating results, conservative Americas

guide Aerospace

12-month rating Buy

12m price target US$426.00

Overall take

Beat and raise across the board including a 6% EBIT raise and a particularly strong FCF

quarter, up 43% yoy / >60% beat. The $10.65bn EBIT guide midpoint is in the Price (15 Jul 2026) US$360.35

neighborhood of expectations and commensurate with the stock price near record RIC: GE.N BBG: GE US

levels, and we believe there is more upside to that range in 2H. Guidance continues to

Trading data and key metrics

look conservative, with the updated low 20% CES Services revenue growth for the year

implying just mid teens growth in 2H. 52-wk range US$378.68-259.00

Market cap. US$380b

Shares o/s 1,054m (COM)

CES revenue (6% beat) was up 27% yoy, with a 40bps margin beat at 27.3% margin

despite OE growing faster than Services. Servicers orders were up 22% in the quarter, a Free float 100%

notable deceleration from +49% in 1Q and flat sequentially, but still a 1.3X book to bill. Avg. daily volume ('000) 1,502

Internal shop visit output continues to progress, reaching record levels during the Avg. daily value (m) US$486

quarter, with the recently certified LEAP-1B durability kit potentially offering additional Common s/h equity (12/26E) US$16.9b

upside in 2H and beyond. We expect the call to focus on the Services market outlook P/BV (12/26E) 22.2x

(2H, 2027) and the OE ramp. Net debt to EBITDA (12/26E) 0.8x

Notable Pros: CES orders +18% (Services +22% = 1.3X book to bill, Equipment EPS (UBS, diluted) (USD)

+7%), CES margin beat, >60% FCF Beat, LEAP-1B durability kit certified, LEAP 12/26E

deliveries +24%. UBS Cons.