Aero engines · aftermarket annuity (LEAP, CFM)
GE Aerospace
The world's largest aircraft-engine maker, split from GE, running a 'razor-and-blade' model — selling engines near cost and earning on decades of installed-base servicing, with services/aftermarket about 70% of revenue. It builds the narrow-body winner LEAP through CFM, its 50/50 JV with Safran, capturing 75% of A320neo orders and the 737 MAX, so every LEAP delivery seeds a multi-decade service annuity. FY2025 revenue was about $45.9B. The re-rating axis is whether aftermarket profit compounds as the surging LEAP fleet matures.
GE Updated Sep 11, 2026 4 AI consumers· 2 recurring
Per the valuechain.wiki graph, GE Aerospace is directly linked to 6 companies (1 supply, 5 revenue relationships) and reaches 14 companies within two hops; the links are backed by 10 dated sources, 3 of them primary filings (as of 2026-09-11).
Financials & Segments
- Total revenue · Total revenue $45.86B (FY2025, +18.5%), segment profit $10.16B, net income $8.7B
- Customer concentration · Services ~70% of revenue; installed base ~50,000 commercial and ~30,000 military engines; LEAP built via CFM (Safran 50-50 JV); US government 10% of revenue.
- Segments · Commercial Engines & Services (CES, 73%) · Defense & Propulsion Technologies (DPT, 23%)
Revenue from
- Airbus High confidence· engine share 75% · 2024 · share of A320neo orders selecting LEAP
Supplies CFM LEAP engines for the A320neo family (50/50 CFM JV with Safran) — 75% of 2024 A320neo orders selected LEAP, showing its winning position in the narrow-body engine duopoly. - 항공사 (카타르·에미레이트·ANA·대한항공 등 LEAP 선정) High confidence· Revenue share 70% · FY2025 · aftermarket services share of total revenue
Airlines selecting LEAP — decades of servicing (MRO, spare parts), not engine sales, are the body. Aftermarket services are ~70% of total revenue (CES services are 75% of CES, $25.0B), and an installed base of ~50,000 commercial and ~30,000 military engines generates the annuity; LTSA billings of $9.89B show the scale of that recurring revenue.Mentions EN Morgan Stanley (via Investing.com) Published Jun 1, 2026: Morgan Stanley Overweight GE Aerospace, PT $400 (Jefferies $455) - Boeing High confidence
Supplies LEAP and GEnx engines for Boeing commercial aircraft; the world's largest aero-engine maker.Mentions EN GE Aerospace Published Jan 1, 2025: Second Boeing 777X Makes First Flight Powered by GE9X - Baker Hughes Company High confidence
GE Aerospace maintains a long-term contractual framework to supply Baker Hughes with aeroderivative technology and related intellectual property, but payments were not disclosed. - Leonardo S.p.A. Medium confidence
Supplies engines for Leonardo helicopter and aircraft programs.Confirms EN GE Aerospace Published Dec 6, 2017: How Avio Aero and Leonardo Elicotteri's collaboration boosted military missions - Korea Aerospace Industries Medium confidence
KAI's FA-50/T-50 are powered by the GE F404-GE-102 turbofan (17,700 lbf thrust) — a defense-export link where Korea's homegrown jets depend on GE for the engine.
Pays to
- Engine materials & precision forgings (titanium, nickel superalloys, forgings/castings) High confidence
A jet engine's hot section hinges on precision forgings/castings of titanium and nickel superalloys — GE sources these from a global supply chain but depends in part on limited/sole-source suppliers (such as Howmet), so material input and inflation are the upstream bottleneck on deliveries and aftermarket throughput. It uses FLIGHT DECK to improve material input and cost, but supply stability is the real constraint on the LEAP ramp and MRO-capacity expansion. - Howmet Aerospace High confidence
Depends on Howmet for engine hot-section castings/forgings (airfoils) — GE was ~11% of Howmet's 2025 third-party sales per Howmet's 10-K, a heavy mutual dependence, and GE's own 10-K states it depends on limited/sole-source suppliers for some parts. This hot-section supply is the upstream bottleneck for the LEAP ramp.Confirms EN SEC / Howmet Aerospace Published Feb 12, 2026: Howmet Aerospace FY2025 Annual Report (Form 10-K)
Investments
- CFM International (Safran 50-50 non-consolidated JV) High confidence· jv stake 50% · FY2025
CFM International, which produces LEAP and CFM56, is a 50-50 non-consolidated JV with Safran Aircraft Engines and the heart of GE's narrow-body business — a $1.68B equity-method investment balance and $376M equity-method income (2025) come from it. Per the mutual-stake basket rule it is recorded as a 'CFM JV' basket rather than a separate Safran investment edge; GE and Safran share the risk, profit and aftermarket of narrow-body engines half-and-half.Mentions EN GE Aerospace Published Oct 21, 2025: GE Aerospace and CFM International expand LEAP MRO capacity
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| Viasat | lead2 | +36.4 | -28.9 | -11.7 | -69.6 | +304.9 | +118.6 |
| Chevron Corporation | lead2 | +46.2 | +58.5 | -13.6 | +1.3 | +10.1 | +40.7 |
| FedEx | lead2 | +0.7 | -31.6 | +49.1 | +13.5 | +5.1 | +39.6 |
| ExxonMobil | lead2 | +57.6 | +87.4 | -6.3 | +11.3 | +16 | +35.2 |
| Voyager Technologies | lead2 | · | · | · | · | · | +29.8 |
| United Parcel Service, Inc. | lead2 | +30 | -16.2 | -6 | -15.9 | -15.9 | +8 |
| Eutelsat Group | lead2 | +17.8 | -30.7 | -51.8 | -48.9 | +32.1 | -21.7 |
| SES S.A. | lead2 | +2.8 | +10.6 | -13 | -36 | +141.5 | -28.2 |
| Baker Hughes Company | lead1 | +19 | +26 | +18.6 | +23.1 | +13.4 | +40.9 |
| Airbus | lead1 | +34.8 | +3.9 | +30.5 | +15 | +18.3 | +4.8 |
| Boeing | lead1 | -6 | -5.4 | +36.8 | -32.1 | +22.7 | -2.2 |
| Leonardo S.p.A. | lead1 | +11.3 | +50.3 | +73.6 | +89.1 | +88.1 | -9.3 |
| Korea Aerospace Industries | lead1 | +15.4 | +34.6 | +7 | +5.5 | +217.9 | -24.6 |
| GE Aerospace | node | +9.7 | -10.9 | +95.7 | +64.8 | +85.7 | +9.7 |
| Howmet Aerospace | benef1 | +11.7 | +24.2 | +37.8 | +102.7 | +88 | +26.7 |
YTD as of 2026-09-04 · source: Yahoo Finance
GE Aerospace operates across Aero engines, aftermarket annuity (LEAP, CFM). It is +9.7% in 2026. Demand side (avg -7.8%), the stock (+9.7%) and supply side (avg +26.7%) are moving in step. Propagation has completed a lap, so the next leg depends on individual results more than chain direction. Among connected nodes the furthest ahead is Howmet Aerospace (+26.7%) and the furthest behind is Korea Aerospace Industries (-24.6%). If chain logic explains the gap, the laggard is the next propagation candidate; if not, the link itself deserves a second look. The re-rating axis is whether aftermarket profit compounds as the surging LEAP fleet matures.
Analysis generated from returns as of 2026-09-04