December 20, 2025 — GE Aerospace (NYSE: GE) is closing out the year with its stock hovering near record territory, as investors weigh a steady stream of operational updates, a fresh FAA directive affecting the LEAP engine program, and a wave of bullish Wall Street coverage that has pushed many price targets well above current levels.
As of the latest available quote (with U.S. markets closed for the weekend), GE Aerospace shares were around $307.21.
Below is a detailed look at what’s moving GE Aerospace stock, what analysts are forecasting next, and the catalysts—and risks—investors are watching into early 2026.
GE Aerospace stock price action: near the 52-week high after a volatile week
GE Aerospace stock has remained in a tight range near the top of its 52-week band in December. During the most recent sessions:
- The stock fell to $292.18 on Wednesday, Dec. 17, then
- rebounded to $301.69 on Thursday, Dec. 18, outperforming several industrial and aerospace peers in that session. [1]
MarketWatch data also shows the stock is still below its 52-week high of $316.67, which was set on Oct. 28, 2025—a level traders and long-only investors continue to treat as a key psychological threshold. [2]
The December 2025 news flow: dividends, defense wins, and production investments
One reason GE remains firmly on investors’ radar is that news has not been confined to earnings season. In recent weeks, the company has continued to publish updates tied to cash returns, defense programs, and manufacturing expansion.
Dividend update: $0.36 per share, payable in January
On Dec. 4, GE Aerospace announced a regular quarterly dividend of $0.36 per share, payable Jan. 26, 2026 to shareholders of record Dec. 29, 2025. [3]
At the latest share price (about $307), that dividend implies an annualized payout of $1.44 per share, or roughly a 0.47% yield—meaning GE’s shareholder story remains more growth-and-cash-flow led than income-driven. [4]
Defense catalyst: LM2500 engines ordered for U.S. Navy destroyers
On Dec. 10, GE Aerospace said it secured an order for eight LM2500 marine gas turbines to support two Arleigh Burke-class Flight III destroyers (DDG 145 and DDG 146). GE noted that LM2500 engines power all active Arleigh Burke destroyers, citing an installed base of 296 engines across 74 ships. [5]
For investors, deals like this matter less for a single-quarter revenue bump and more because defense programs can add multi-year visibility and long-tail service demand—often with different cycle characteristics than commercial aviation.
Helicopter engine milestone: CT7-2E1 crosses 500,000 flight hours
On Dec. 16, GE Aerospace announced the CT7-2E1 turbo-shaft engine surpassed 500,000 in-service flight hours. The company positioned the milestone as a durability signal for helicopter operators and OEM partners. [6]
While this is not the core driver of GE’s equity narrative compared with LEAP/GEnx/GE9X, it reinforces a recurring theme in the investment case: high utilization and services intensity.
Manufacturing expansion: UK and U.S. facility investments
GE Aerospace has also continued investing into capacity and modernization—an important storyline given that engine supply constraints have been a central bottleneck across commercial aerospace.
- Dec. 1: GE Aerospace said it will invest £19 million to refurbish and modernize its Wales site, including building upgrades intended to improve working conditions and reduce energy consumption. [7]
- Nov. 24: GE Aerospace announced a $53 million investment to expand its West Jefferson, North Carolina facility by 35,000 square feet, with the goal of strengthening production for critical parts used in the CFM LEAP program and related output ramp initiatives. [8]
For GE stockholders, these updates matter because the bull case increasingly hinges on two linked outcomes:
- improved engine delivery capability, and
- sustaining the aftermarket flywheel that’s been boosted by airlines keeping older fleets in service longer.
A key new factor for GE stock: FAA airworthiness directive affecting LEAP-1A engines
One of the most consequential December headlines for the broader GE/Safran CFM LEAP ecosystem is regulatory:
- On Dec. 12, 2025, the U.S. Federal Register published a new FAA airworthiness directive (AD) for certain CFM LEAP‑1A engines, with an effective date of Dec. 29, 2025. [9]
- The DOT summary states the AD was prompted by reports of two in-flight shutdowns and investigation findings tied to cracks in high-pressure turbine (HPT) rotor stage 1 blades, requiring initial and repetitive borescope inspections, and in some cases blade replacement. [10]
- The Federal Register text details that the AD applies to specified LEAP‑1A variants with certain blade part numbers and more than 1,100 “South Asia takeoffs” accumulated on the affected blades. [11]
Industry coverage from FlightGlobal emphasizes the issue is linked to dust-related accelerated deterioration and notes CFM characterized it as a “known issue,” with customers already complying with guidance—while also stating it does not expect operational disruption. [12]
Why investors care
This type of directive can cut both ways for GE’s equity story:
- Risk angle: More frequent inspections or part replacements can add operational friction for airlines and can signal durability challenges under harsh conditions—often a sensitive topic for next-gen engines that run hotter and at higher pressures. [13]
- Aftermarket angle: Inspections, shop visits, and replacement activity also tend to increase service work, which is traditionally where GE captures attractive economics.
The critical question for GE stock into 2026 is whether durability-related actions remain manageable “in the flow” of normal maintenance—or whether they escalate into broader fleet disruption.
The fundamental driver: aftermarket demand, services growth, and an output ramp
GE’s most important operational storyline remains the same: services are strong, and the company is still pushing to deliver more engines into a supply-constrained world.
Reuters has repeatedly highlighted that:
- Limited aircraft and engine supply has forced airlines to keep older jets flying longer, driving spending on maintenance, and
- GE’s commercial engine business is heavily tied to parts and services. [14]
That dynamic showed up in GE’s own third-quarter performance, which management framed as supported by robust demand and improved output.
Financial guidance and company outlook: raised 2025 targets, with long-term ambition to 2028
Q3 2025: raised full-year guidance “across the board”
In its Q3 2025 earnings release (Oct. 21), GE Aerospace reported:
- Total revenue (GAAP): $12.2B (+24%)
- Adjusted revenue: $11.3B (+26%)
- Adjusted EPS: $1.66 (+44%)
- Free cash flow: $2.4B (+30%) [15]
Crucially for valuation, the company also raised its full-year 2025 guidance, including:
- Adjusted EPS:$6.00–$6.20 (raised from prior range)
- Operating profit:$8.65–$8.85B
- Free cash flow:$7.1–$7.3B [16]
The same release also pointed to operational momentum: record LEAP deliveries up 40% year over year in Q3, and defense deliveries up 83% year over year. [17]
Long-term framing: 2028 targets and a large backlog
In its Q2 2025 update, GE Aerospace reiterated longer-term ambitions, referencing an operating profit outlook of about $11.5B and free cash flow around $8.5B in 2028, while also referencing a roughly $175B backlog. [18]
For investors, these long-range targets are central to the premium multiple debate: GE stock is increasingly priced as a multi-year compounding story, not a cyclical trade.
Analyst forecasts and price targets: Citi’s $386 call and a consensus in the mid-$340s
In the days leading up to Dec. 20, GE has seen a notable burst of sell-side activity—particularly around the aerospace and defense “megatrend” narrative.
Citi initiates with “Buy,” price target $386
A Reuters/Refinitiv item reported that Citigroup initiated coverage of GE Aerospace with a Buy rating and a $386 price target, arguing GE is well-positioned to benefit from long-duration aerospace/defense trends and even floating the idea GE could be among the first public A&D companies to approach a $1 trillion market cap on a multi-year view. [19]
Investor’s Business Daily also reported Citi’s “$1 trillion market cap” framing, noting GE’s market value was roughly $318.6B at the time and pointing to technical levels around the $316.67 record high/buy point. [20]
Other bullish targets: $350–$365 range from major shops
Beyond Citi:
- Jefferies reiterated a Buy rating and $365 price target in November, according to Investing.com’s analyst coverage report. [21]
- Susquehanna initiated coverage with a Positive rating and $350 price target (reported via GuruFocus). [22]
What the broader consensus says
Depending on the data source, the “street” consensus clusters around the mid-$340s:
- TipRanks shows an average price target around $342.17, with a high forecast of $386 and a low forecast of $275. [23]
- MarketWatch lists an average target price around $343.29 (with 23 ratings shown). [24]
If GE is trading around $307, a mid-$340s target implies low double-digit upside—though the dispersion (from $275 to $386) underscores that analysts do not agree on how much multiple expansion GE “deserves” from here.
The valuation debate: premium multiple vs. premium business model
Bulls argue GE deserves a premium because it sits at the center of multiple durable themes:
- Commercial aviation utilization remains high, with airlines investing heavily in maintenance amid aircraft shortages.
- Engine services can be structurally attractive, especially on modern fleets with large installed bases.
- Defense propulsion and naval programs can provide diversified demand.
Skeptics counter that GE’s premium may already discount much of the good news. Barron’s has highlighted valuation concerns in prior coverage, including commentary that GE was trading at a large premium to peers on forward earnings estimates at certain points in 2025. [25]
This tension—quality compounding story vs. expensive stock—is likely to remain the central push-pull for GE shares into earnings.
Key risks and watch-items for GE Aerospace stock into 2026
Here are the themes most likely to move the stock over the next several weeks:
- LEAP durability and regulatory actions
FAA directives and inspection requirements can increase service workload and reinforce safety discipline, but also raise questions about time-on-wing, shop visit cadence, and the pace of durability upgrades. [26] - Supply chain and delivery cadence
GE has pointed to improved output and supplier progress, but the broader aerospace supply chain remains fragile. Boeing’s ongoing labor negotiations and complex supplier integration environment matter because airframe build rates influence engine demand timing. [27] - Geopolitics and China exposure
In July, Reuters reported the U.S. authorized GE to resume shipping engines to COMAC, after earlier license suspensions—an example of how quickly policy can move around aerospace supply chains. [28] - Airline profitability and travel demand
Industry-wide tailwinds matter for services. Reuters reported IATA expects global airlines to be set for record net profit next year, which supports the case that carriers can keep spending on fleet upkeep and reliability initiatives. [29] - Policy risk around defense contractor payouts
Reuters reported the Trump administration was preparing an executive order aimed at restricting dividends/buybacks/executive pay for defense contractors with major cost overruns and delays—news that can ripple across aerospace/defense sentiment even when not directly targeted at GE. [30]
What to watch next: the January earnings catalyst
The next major scheduled event on GE Aerospace’s calendar is its 4th Quarter 2025 Earnings Webcast, listed by the company for Jan. 22, 2026 (7:30–8:20 a.m. EST). [31]
With the stock already priced near record highs, investors will likely focus on:
- updated 2026 demand and delivery assumptions,
- LEAP durability and shop-visit cadence commentary,
- margin trajectory as equipment output rises,
- and any update to longer-range cash-flow expectations.
Bottom line
As of Dec. 20, 2025, GE Aerospace stock sits in a powerful position: close to record highs, supported by raised guidance, continued investment in capacity, and a drumbeat of bullish analyst targets—most notably Citi’s $386 initiation.
But the same moment also highlights the “cost of leadership” in jet engines: durability and inspection requirements (like the FAA’s new LEAP-1A directive) can become headline risk, and a premium valuation leaves less room for execution stumbles.
Disclosure: This article is for informational purposes only and does not constitute investment advice.
References
1. www.marketwatch.com, 2. www.marketwatch.com, 3. www.geaerospace.com, 4. www.geaerospace.com, 5. www.geaerospace.com, 6. www.geaerospace.com, 7. www.geaerospace.com, 8. www.geaerospace.com, 9. www.federalregister.gov, 10. www.transportation.gov, 11. www.federalregister.gov, 12. www.flightglobal.com, 13. www.flightglobal.com, 14. www.reuters.com, 15. www.geaerospace.com, 16. www.geaerospace.com, 17. www.geaerospace.com, 18. www.geaerospace.com, 19. www.tradingview.com, 20. www.investors.com, 21. www.investing.com, 22. www.gurufocus.com, 23. www.tipranks.com, 24. www.marketwatch.com, 25. www.barrons.com, 26. www.transportation.gov, 27. www.reuters.com, 28. www.reuters.com, 29. www.reuters.com, 30. www.reuters.com, 31. www.geaerospace.com
