New York, January 22, 2026, 17:03 (EST) — After-hours trading
- GE Aerospace shares dropped roughly 7% in late trading following the release of its quarterly results and 2026 outlook.
- The jet-engine maker highlighted robust demand for high-margin parts and maintenance services, despite airlines voicing concerns over repair delays.
- Traders are shifting focus to service pricing, shop capacity, and aircraft delivery rates as they search for the next cue.
GE Aerospace shares dropped roughly 7.4% to $295 in after-hours Thursday, erasing earlier gains following the release of its 2026 targets alongside the quarterly report. RTX slipped about 0.6%, while Boeing edged up 0.5% in late trading.
This shift is significant since GE’s main source of profit comes from the aftermarket—spare parts and maintenance—where margins tend to be higher than on new engines. That segment has remained strong as airlines keep older planes flying longer and jetmakers wrestle with the shortfall between demand and deliveries. 1
Investors have been betting heavily on that narrative. But when repair shops get backed up or airlines resist raising prices, doubts creep in about the steadiness of cash flow from one quarter to the next.
GE reported adjusted fourth-quarter revenue climbing 20% to $11.87 billion, with adjusted earnings per share hitting $1.57. Looking ahead to 2026, the company expects adjusted EPS between $7.10 and $7.40, operating profit ranging from $9.85 billion to $10.25 billion, and free cash flow of $8.0 billion to $8.4 billion—this last figure representing cash remaining after capital expenditures. CEO H. Lawrence Culp Jr remarked, “We enter 2026 with solid momentum.” 2
GE warned growth will slow after a strong 2025, when adjusted revenue surged 21% to $42.3 billion. In its commercial engines and services division, quarterly margins slipped, hit by weaker spare-engine sales and rising R&D costs that erased gains from higher service volume.
The company highlighted a backlog nearing $190 billion alongside a spike in fourth-quarter orders, which fueled increased material flow through its supply chain. Priority suppliers boosted material input by over 40% in 2025, supporting a 25% jump in engine deliveries, including a record LEAP output. It also confirmed plans to invest upwards of $1 billion in its maintenance network. 3
The aftermarket is far from quiet. Culp has publicly challenged airlines’ claims that engine makers have gained pricing power as repair times stretch out. Bain & Company estimates that turnaround times for newer-generation engine shop visits — those major scheduled maintenance events — run about 150% longer than before the pandemic. “We invest heavily in technology,” Culp said, pointing to roughly $3 billion a year in R&D. 4
Risks are clear: airlines are raising alarms over soaring maintenance costs, grounded planes pile up due to parts shortages, and repairs for durability issues demand both time and cash. If customers push for discounts or repair shops get overwhelmed, the servicing boost underpinning GE’s outlook could vanish quickly.
GE’s core narrowbody engine business remains closely linked to production forecasts at Airbus and Boeing, as well as the competitive pressures from Pratt & Whitney’s geared turbofan programs. Changes in delivery timelines rapidly turn into issues around parts and repairs.
Traders are turning their focus to Boeing’s Q4 earnings due Jan. 27, seeking clues on 737 MAX production. That figure plays a crucial role in engine delivery schedules and the service backlog GE has repeatedly highlighted. 5
