To The Moon

Relationship between $GE Aerospace(GE)$ and $GE Vernova Inc.(GEV)$

GE Board of Directors Approves Spin-Off of GE Vernova; GE Vernova and GE Aerospace to Launch April 2, 2024 | GE Vernova News

Split: In 2021 General Electric announced a three-way break-up, completed on 2 April 2024.

• GE Aerospace kept the ticker $GE Aerospace(GE)$ and focuses on jet engines; the stock is up 62.53 % in 2025.

• GE Healthcare was spun off as $GE HEALTHCARE TECHNOLOGIES INC(GEHC)$ ; the stock is down 8.77 % in 2025.

• $GE Vernova Inc.(GEV)$ took over all legacy GE energy businesses—gas, nuclear, wind, hydro, grid—and began trading under GEV in April 2024; the stock is up 100.74 % in 2025. GE and GEV are now two completely separate public companies, historically linked only as parent and subsidiary.

Why $GE Vernova Inc.(GEV)$ keeps surging in 2025

• Demand side: AI data centers, EVs and electrification are creating an “explosion” in global power demand; orders for gas turbines and grid upgrades are soaring.

• Earnings delivery: 2025 Q2 revenue $9.1 B (+11 %), EPS $1.77 beat expectations; EBITDA margin rose from 6.4 % to 8.5 %, prompting guidance to be raised.

• Policy subsidies: The U.S. Inflation Reduction Act and DOE low-interest loans significantly lift IRR for gas-plus-renewables and grid projects.

• Street consensus: UBS, BMO, Citi and Jefferies all raised price targets to the $600–700 range and reiterated Buy/Overweight ratings.

• Flow dynamics: GEV has rallied 100.74 % YTD; short-covering and ETF inflows have created a squeeze.

Why $GE Aerospace(GE)$ keeps surging in 2025

• Beat-and-raise: 2025 Q2 GE Aerospace revenue ~$10.27 B (+13 %), adjusted EPS $1.43 (+20 %), both above consensus; full-year guidance was lifted, reinforcing confidence in continued growth. After-market moat: GE’s CFM56 and LEAP engines dominate the global fleet; once installed, airlines are locked into long-term service, parts and upgrades—generating “sticky” cash flow. Service bookings in 2025 Q1 alone were $12.3 B; backlog stands at $140 B, providing a decade of visibility.

• Operational leverage: Operating margin expanded from 12.3 % (2022) to 18.8 % (2025), a 53 % increase, boosting free cash flow and ROIC and driving multiple re-rating.

• Macro tailwind: Global air traffic is above pre-COVID levels, and the fleet-renewal cycle is adding new deliveries and MRO demand. If the global economy keeps improving, flight frequency and aircraft utilization will rise further, accelerating GE’s aftermarket revenue.

• Sentiment & flows: GE Aerospace is up >60 % YTD; options still imply ~5 % upside post-earnings and the Street average price target is ~$270.

GE vs. GEV — two different stories

$GE Aerospace(GE)$

• Positioning: Pure-play aerospace engine & aftermarket leader, defensive cash-flow compounder. Valuation: 25× 2025E FCF—above its own historical mean but below defense peers. Catalysts

• Global passenger growth; LEAP spares demand 2025–27 CAGR >15 %.

• $750 M buyback in 2025 Q2; management hints at more in H2.

• Action: Long-term hold—add on dips to $130–135, stop-loss $120, According to analysts, GE price target is 293.93 USD with a max estimate of 321.00 USD and a min estimate of 254.00 USD.. Short-term lacks explosive upside; avoid chasing.

$GE Vernova Inc.(GEV)$

• Positioning: Core energy-transition asset—gas turbines + grid + wind “three-engine” platform. Valuation: ~$660 implies 50× 2025E PE, 35× 2026E—rich but growth-supported. Trades at ~53× trailing PE, a ~150 % premium to peers. Catalysts

• AI data-center power demand CAGR 14–20 % 2025–27; gas units already in AWS & Microsoft supply chain.

• IRA subsidies run through 2028; management guides 2025–27 EPS CAGR >50 %.

• JPMorgan & Jefferies PT $715, still ~13 % upside from spot. Risks • Wind orders face European subsidy roll-off; one-time tariff hit ~$400 M.

• Highly leveraged; if AI CapEx cycle slows, valuation compression could be severe.

• $GE Vernova Inc.(GEV)$ acquires French software company Alteia to deepen its AI solutions offering for the power industry

• Action: Tactical—buy 530–560 zone, stop-loss $510 (50-day MA); first target $700, stretch $760. Short-term overbought—avoid chasing; consider selling $700 covered calls to enhance yield.

Portfolio blend

• Conservative: 70 % GE + 30 % GEV for defense plus thematic upside.

• Aggressive: 30 % GE + 70 % GEV for energy-transition beta with tight risk controls.

Bottom line:

$GE Aerospace(GE)$ is a “buy-and-hold” compounder; $GE Vernova Inc.(GEV)$ is a “buy-the-dip” high-beta play. Neither should be chased at fresh highs—wait for technical pullbacks to improve odds.