GE Aerospace GE is a leading designer, developer and producer of jet engines, components and integrated systems for military, commercial and business aircraft. Its products and services range from jet engines like LEAP, GE9X & GEnx, airframes, engine gear, and transmission components and services, among others.
The company’s commitment to reward its shareholders through dividends and share buybacks is encouraging. In the first half of 2026, it bought back shares for $4.2 billion and paid dividends of $873 million, up 26.9% year over year, to its shareholders. In addition, in 2025, it rewarded its shareholders with a dividend payment of $1.45 billion and repurchased shares for $7.55 billion. Following the first quarter of 2026, share repurchases are being made under the new $20 billion authorization approved in December 2025.
GE Aerospace raised its dividend by 30.6% to 36 cents per share in February 2026. It expects to generate a free cash flow of $8.9-$9.2 billion in 2026, much higher than $8.0-$8.4 billion guided previously. Also, the company previously announced its plans to boost total shareholder returns by 20% to approximately $24 billion from 2024 to 2026, through a mix of dividends and share repurchases.
The company’s strong liquidity also supports its shareholder-friendly policies. Exiting the second quarter, GE’s cash, cash equivalents and restricted cash were $9.3 billion, much higher than the short-term borrowings of $2 billion. This implies that the company has sufficient cash to meet its short-term debt obligations.
Do GE’s Peers Focus on Returning Capital to Shareholders?
3M Company MMM rewarded its shareholders with dividend payouts of $0.8 billion and $3 billion in buybacks in the first six months of 2026. Exiting the second quarter of 2026, 3M had approximately $1.8 billion remaining under the share repurchase program. Also, in February 2026, 3M hiked its quarterly dividend by 6.8%.
Howmet Aerospace HWM remains focused on rewarding its shareholders handsomely through dividends and share buyback programs. In the first six months of 2026, Howmet paid dividends of $97 million, and in July 2026, it hiked its dividend by 17% to 14 cents per share (annually: 56 cents). On a year-to-date basis through July, HWM repurchased shares worth $800 million. As of Aug. 6, 2026, Howmet’s total share repurchase authorization available was $697 million.
GE's Price Performance, Valuation and Estimates
Shares of GE Aerospace have gained 3% in the past six months against the industry’s decline of 10%.
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From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 40.15X, above the industry’s average of 33.51X. GE Aerospace carries a Value Score of D.
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The Zacks Consensus Estimate for GE’s earnings has increased for both 2026 and 2027 over the past 60 days.
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
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This article originally published on Zacks Investment Research (zacks.com).