GE-AEROSPACE-2026: Financial & Cashflow Analysis

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Explore our comprehensive research brief on GE-Aerospace-2026. This detailed brief covers key financial insights, cash flow analysis, and qualitative findings.

šŸ“Š Interactive Cash Flow Visualizations

Sankey Diagram: Source & Application

Waterfall Chart: Net Movement

šŸ“ˆ Key Financial Parameters

ParameterValue
Capital expenditures1273
Cash and cash equivalents, end of year14782
Depreciation and amortization1220
EBITDA12707
Gross Profit8513
Income tax provision1405
Interest-net882
Long-term debt, excluding current maturities18808
Net Earnings8601
Net Sales45855
Operating income9055
Profit before tax10000
Total Assets130169
Total Equity18898
Total current assets40596
Total current liabilities38980
Total liabilities and Equity130169

🧮 Calculated Metrics

MetricValue
Cost of Debt0.0469
Cost of Equity0.1532
Total Debt and Equity37,706
EBIT11,487
tax rate0.0747
Net working capital1,616
FCF012,191.8952
FCF112,923.4089
FCF213,698.8135
WACC0.0984
Terminal Value377,687.1034
Enterprise Value336,140.1774
Equity value332,114.1774
Intrinsic Share price319.3406

šŸ“ Detailed Cashflow Breakdown

Line ItemValue
Closing Cash and cash equivalents, end of year13657
Net (decrease)/increase in cash and cash equivalents-2223
Net cash provided by operating activities8537
Net cash provided by/(used in) financing activities-8682
Net cash used in investing activities-1153
Opening Cash and cash equivalents, beginning of year15880

šŸ” Management Commentary & Qualitative Insights

Q: Analyze the auditor’s assessment of Internal Control over Financial Reporting (ICFR). Were any material weaknesses or significant deficiencies identified?
Not Found
Q: Are there any issues like pending lawsuits (contingent liabilities)?
Yes
Q: Does the auditor's report mention any material uncertainty related to going concern? Identify any language suggesting the company might not survive the next 12 months.
Not Found
Q: Extract the Auditor's Report section. Does the auditor provide an unqualified opinion? If the opinion is modified (qualified, adverse, or a disclaimer), explain the specific reasons provided by the auditor for this modification.
Yes, the auditor provides an unqualified opinion; no modification was made.
Q: Is the revenue growth sustainable?
Not Found
Q: List the Key Audit Matters (KAMs) identified by the auditor. For each, summarize why the auditor considered it a significant risk and what specific procedures they performed to address it.
Sales of services - Revenue recognition on certain Aerospace long-term service agreements', 'Risk': 'Significant judgment in estimating future costs and timing', 'Procedures': 'Tested controls, evaluated assumptions, performed analytical procedures, involved specialists, Future policy benefits', 'Risk': 'High uncertainty in morbidity assumptions', 'Procedures': 'Tested controls, performed retrospective reviews, validated data, recalculated discount rates
Q: What are the biggest risks ahead?
The biggest risks identified include macroeconomic and market volatility, fluctuations in demand for air travel and defense budgets, safety or quality issues with products, operational execution challenges, geopolitical and trade tensions, tariff impacts, regulatory and compliance risks, litigation and contingent liabilities, and uncertainties related to future transactions or acquisitions.
Q: What are the competitive advantages that protect the business from rivals?
Competitive advantages include the largest and growing commercial propulsion fleet, a strong aftermarket services business representing about 70% of revenue, a proprietary lean operating model (FLIGHT DECK), extensive intellectual property, long‑term customer relationships, and scale across commercial and defense segments.
Q: What are the details on Executive Compensation and "Promoter Pledging"?
Executive compensation includes life‑insurance, pension, restoration, excess‑benefits, deferred‑salary, long‑term incentive, stock‑option and RSU plans; promoter pledging is not referenced.
Q: What are the key insights from the Management Discussion and Analysis report?
The MD&A highlights revenue growth of 18% to $45.9 billion, segment profit increase of $2.4 billion, improvement in profit margin to 21.8%, growth in remaining performance obligations, details on equipment and services revenue, and discussion of strategic priorities and risk factors.
Q: What are the key insights on the expansion of the product portfolio?
The key insights on expansion of the product portfolio include the ramp of LEAP engine deliveries, development of GEnx and GE9X engines, dust ingestion testing, the RISE program’s Open Fan and hybrid electric technologies, and continued investment in additive manufacturing and ceramic matrix composites.
Q: What is the company's stated future outlook and growth strategy?
The company states its future outlook and growth strategy focuses on ramping services and equipment now, expanding capacity and capabilities tomorrow, and inventing the future of flight; it emphasizes aftermarket services, expanding engine portfolio (LEAP, GEnx, GE9X), investing in RISE technologies, and growing MRO capacity.
Q: What is the core revenue model, key products, and major customers?
The core revenue model is driven by equipment sales and aftermarket services, with key products being jet engines such as LEAP, GEnx, and GE9X, and major customers including airframers (Boeing, Airbus) and airlines (Qatar Airways, Emirates, etc.) as well as defense customers.
Q: Who is the CEO and Chairman of the Company?
H. Lawrence Culp, Jr.
Q: what is the "Operating Cash Flow" and is it growing?
Operating Cash Flow was $8.5 billion in 2025, an increase of $2.7 billion compared to 2024, indicating growth.

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