Global Aerospace Giants: A Comparative Investment Outlook
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Global Aerospace Giants: A Comparative Investment Outlook
- GE Aerospace reported $42.3 billion in sales compared to Rolls-Royce's $26.8 billion, demonstrating GE's larger revenue base.
- Rolls-Royce's stock performance over the past five years saw a gain of 994%, significantly outperforming GE Aerospace's 377% gain in the same period, though recent one-year performance has been comparable.
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GE Aerospace and Rolls-Royce, two prominent jet engine manufacturers, present distinct profiles for investors. GE Aerospace, which became an independent company in April 2024 after the spin-off of GE Vernova, has shown strong growth metrics. In 2023, GE Aerospace generated $42.3 billion in sales and reported an 11.1% growth in sales, 12.8% in EBITDA, and 11.2% in free cash flow. The company’s backlog stands at $190.6 billion, representing 4.5 times its sales. GE Aerospace is heavily focused on commercial sales, which constitute 79% of its business, with 25% in defense.
Rolls-Royce, headquartered in the UK, reported revenues of £15.4 billion in 2023 and an underlying operating profit of £1.6 billion, with a significant increase to £2.5 billion in 2024. The company’s underlying operating margin rose to 10.3% in 2023 and 13.8% in 2024, with a target of 15-17% in the mid-term. Rolls-Royce’s market share in wide-body installed fleet grew from 32% at the end of 2022 to 36% at the end of 2024. Its order book stands at over £78 billion.
From a stock performance perspective, Rolls-Royce has seen a remarkable turnaround under CEO Tufan Erginbilgic, with its stock gaining 994% over the past five years. Over the past year, Rolls-Royce’s stock gained 62.7%, comparable to GE Aerospace’s 64.8% gain. Analysts have a consensus “Strong Buy” rating for GE Aerospace with an average price target of $396.45, implying a potential 5.1% upside as of August 2026. Rolls-Royce’s AI price target for three months is GBX 1,723.86, representing a 12.21% upside from its last price of GBX 1,536.28.