New York, January 23, 2026, 05:02 EST — Premarket
- Shares of GE Aerospace rose 0.8% in premarket trading following a 7.4% drop in the previous session
- Airlines are boosting maintenance budgets amid aircraft shortages, pushing their 2026 profit forecasts above expectations
- Pressure from airlines on repair costs and turnaround times has returned to the spotlight
GE Aerospace shares ticked higher in early trading Friday, rebounding slightly after a steep drop the day before. The jet-engine maker’s stock rose 0.8% to $297.40 by 5:00 a.m. EST, following a 7.4% slide that pushed it down to $295 on Thursday. (Public)
Investors are parsing GE’s 2026 forecast, which leans heavily on robust performance in its aftermarket segment — the parts and repair work that kicks in once engines are operational. The company projects adjusted earnings of $7.10 to $7.40 per share for 2026, nudging just above the $7.11 consensus from analysts tracked by LSEG. It also anticipates low double-digit growth in adjusted revenue. (Reuters)
Why it matters now: airlines are extending the life of their current fleets as new aircraft deliveries lag, sending more engines into maintenance. This trend is also stoking battles over pricing power and how long engines sit in repair queues. (Reuters)
CEO Larry Culp fired back at airline complaints, emphasizing that GE “invest[s] heavily in technology” and calling airlines “the ultimate customer.” He highlighted the company’s roughly $3 billion annual R&D budget and confirmed a regular summer review of aftermarket pricing is coming. Bain & Co. estimates repair-shop turnaround times for newer engines have surged to about 150% above pre-pandemic levels. (Reuters)
GE reported adjusted earnings of $1.57 per share in the fourth quarter, with adjusted revenue hitting $11.9 billion. Orders surged 74% to $27.0 billion, while the company noted its backlog stands near $190 billion. (GE Aerospace)
GE reported a 21% jump in full-year adjusted revenue, reaching $42.3 billion. Free cash flow, which is cash after capital spending, increased 24% to $7.7 billion. The company said material input from priority suppliers surged over 40% year-on-year, driving a 25% rise in engine deliveries. For the quarter, internal shop-visit revenue was up 30%, while spare parts revenue climbed more than 25%. (GE Aerospace)
Engine makers hit their sweet spot here: more shop visits usually translate to higher-margin parts sales, outpacing new engine orders. But this is also where operational pressures tend to surface first.
The risk is clear. Should airlines secure price concessions, or regulators clamp down on repair competition, margins could come under pressure. If aircraft shortages ease quicker than expected—or travel demand falters—the maintenance cycle driving this trade could lose steam.
Next, watch how the outlook shifts when the market reopens and analysts adjust their models after this big move. GE’s earnings presentation projected 2026 operating profit between $9.85 billion and $10.25 billion, with free cash flow expected to hit $8.0 billion to $8.4 billion. The company scheduled its next earnings update for April 21, followed by the second-quarter report on July 16. (MarketScreener)
