GE Aerospace (GE): defense and trade exposure
How global shocks reach GE
GE Aerospace is filed under Aerospace & Defense, and 1 of the 6 shock types GLOBLVIEW tracks reach it through that sector (conflict risk). Stories centered on the United States also register as geographic exposure, because GE Aerospace is registered in the United States.
| Shock | Channel | Tendency for GE | Why |
|---|---|---|---|
| CONFLICT RISK | Risk appetite | ▲ tends to benefit | Rising conflict risk tends to favor aerospace & defense, as budgets and demand shift toward it when tensions escalate. |
Direction is a tendency across cycles, not a forecast. Sector mapping uses the Finnhub industry classification; geography uses country of registration, not revenue by region.
What actually moves GE Aerospace
GE Aerospace's own debt is a slow clock. Borrowings were $20.49 billion, with senior notes at a 4.00% average rate and $1.69 billion short-term, mostly notes due in 2026. Rates and credit stress matter more at the airline and the lessor. If they defer shop visits, GE loses services revenue, which is the core of the company.
Conflict cuts both ways. Defense & Propulsion Technologies was $10.55 billion, and US government agencies were 10% of revenue. Services were about 71% of revenue once a run-off insurance book is set aside, and those shop visits need flying hours. A war that grounds commercial fleets hits the larger line. Oil does the same through airline fuel bills.
Trade is already in the service-agreement math. The filing attributes a worse long-term service agreement result primarily to estimated tariffs, and it notes a late-2025 zero-for-zero aerospace tariff arrangement with the EU, the UK, Japan and Korea. Non-US customers were 60% of revenue. The less obvious input is rare earths, named in this filing as a supply constraint, alongside export licenses for engines and parts.
Drawn from the annual filing cited below. Not a forecast and not investment advice.
What GE Aerospace sells and where it earns
GE Aerospace designs, builds and services jet engines for commercial and military aircraft. Total revenue in 2025 was $45.86 billion, up 18% from $38.70 billion. That figure includes $3.53 billion from a run-off insurance book left over from the old conglomerate. Strip it out and services, meaning spare parts, shop visits and long-term service agreements, were $30.16 billion, or 71% of the rest, against $12.16 billion of equipment sales. The filing puts the installed base at roughly 50,000 commercial and 30,000 military engines. Commercial Engines & Services is the larger of the two segments. It booked $33.31 billion of segment revenue and delivered 2,386 commercial engines, 1,802 of them LEAP units built through CFM International, the 50-50 venture with Safran. Defense & Propulsion Technologies added $10.55 billion. Non-U.S. customers produced 60% of revenue, up from 55%. The filing also says global material availability and supplier delivery performance continue to disrupt production and deliveries, and it expects supply chain constraints and inflation to continue. Regional shares below are of total revenue and sum to 101% after rounding.
Customer concentration
The filing says total sales of equipment and services to agencies of the U.S. Government were 10% of total revenue in 2025, down from 12% in 2024 and 14% in 2023. Commercial customers are mainly airframers, including both Boeing and Airbus, plus airlines and third-party repair shops.
Debt
Total borrowings were $20.49 billion at December 31, 2025, of which $1.69 billion was short-term, mostly $1.50 billion of senior notes maturing in 2026. Senior notes carry a 4.00% average rate. The maturity table also flags $324 million of long-term debt that carries put options.
Risk factors that moved this year
- Tariffs have moved from a risk factor into the numbers. The FY2025 filing attributes an unfavorable change in long-term service agreement profitability primarily to the estimated impact of tariffs, notes a late-2025 zero-for-zero aerospace tariff deal with the EU, UK, Japan and Korea, and says it is watching U.S. Supreme Court rulings on tariffs.
- Rare earth restrictions show up for the first time in a GE 10-K, raised in the context of trade policy as something that can disrupt the supply chain and production costs.
- Supply chain constraints remain prominent rather than new. The company says material availability and supplier delivery performance continue to limit output while it ramps LEAP production and adds $1 billion of repair capacity, $500 million of it for LEAP.
How this changes the exposure read
Conflict risk cuts both ways here. It supports Defense & Propulsion Technologies and the 10% of revenue sold to U.S. Government agencies, but it threatens airline traffic, which drives shop visits and spare parts, the core of a business where services are about 70% of revenue. Oil shocks hit airline customers and can slow flying hours. Trade/tariff is direct: tariffs already cut service agreement margins, and 60% of revenue is non-U.S. Chip/export rules matter through export licensing and rare earth inputs. Rates/Fed and credit stress matter mostly through airline and lessor finances rather than GE's own $20.49 billion of debt.
Source: GE Aerospace 10-K, FY2025. Checked 2026-10-07. Figures are from the filing and may differ from the live stats above.
What is moving it now
Key stats
Recent filings
Related tickers
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- Your US portfolio might not be a US portfolio
- Which sectors react to which shocks
- How to read a scored headline
- Methodology and editorial policy
Quotes may be delayed. Information only, not investment advice.