Can GE's Growth Investments Create Long-Term Value for Investors?

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Can GE's Growth Investments Create Long-Term Value for Investors?

GE Aerospace GE has been making significant investments in its manufacturing facilities to boost growth. The company has been on track to invest more than $1 billion in its Maintenance, Repair and Overhaul (MRO) facilities around the world over the next few years. This includes the acquisition of a dedicated LEAP test cell, which will unlock a major constraint in its shop visit output. The company is also expanding several MRO facilities, including Dallas, Malaysia and Celma and a new on-wing support site in Dubai. 

In 2026, GE Aerospace plans to invest an additional $1 billion in U.S. manufacturing and technology. Also, it decided to invest more than €110 million across its European manufacturing facilities this year. These investments will allow the company to boost its operational capacities, introduce new technologies to further reduce turnaround time and costs and provide better customer services.

Also, the company plans to invest up to $300 million over five years (2025-2029) to boost engine repair capabilities in Singapore. It has a strong pipeline of MRO contracts from several customers like Airbus, El Al Israeli Airlines, Royal Jordanian, flydubai and China Airlines. 

GE’s continued investment activities, driven by a strong pipeline of projects, are expected to drive its long-term growth. For 2026, the company expects adjusted revenues to increase in the low-double-digit range. This includes mid-teens growth in the commercial engines and services unit and mid-to-high single-digit growth in the defense and propulsion technologies unit.

Notable Investments of GE’s Peers

RTX Corporation’s RTX Collins Aerospace business recently committed an investment of $26.5 million for the expansion of its Largo, FL, facility. With the investment, RTX will boost the production and delivery of commercial aviation radars and security solutions for its defense clients.

In January 2026, L3Harris Technologies, Inc. LHX proposed a first-of-its-kind partnership with the U.S. Department of War. The proposed deal will involve the government investing $1 billion in its Missile Solutions unit through a convertible preferred security to expand solid rocket motor production capacity.

GE's Price Performance, Valuation and Estimates

Shares of GE Aerospace have increased 31.4% in the past year compared with the industry’s growth of 3.6%.

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From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 40.39X, above the industry’s average of 32.78X. GE Aerospace carries a Value Score of D.

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Image Source: Zacks Investment Research

The Zacks Consensus Estimate for GE’s 2026 and 2027 earnings has been on the rise over the past 60 days.

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Image Source: Zacks Investment Research

The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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GE Aerospace (GE): Free Stock Analysis Report
 
L3Harris Technologies Inc (LHX): Free Stock Analysis Report
 
RTX Corporation (RTX): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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