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    Is GE (GE) Using Long-Dated GEnx Orders to Quietly Redefine Its Aerospace Profit Engine?

    Simply Wall St·07/28/2026 23:34:21
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    • In July 2026, Philippine Airlines announced an agreement with GE Aerospace to supply GEnx-1B engines for 15 Boeing 787-10 Dreamliners, plus options for five more, with aircraft deliveries scheduled between 2031 and 2034.
    • This long-dated engine deal underscores how GE’s efficient, lower-emission GEnx technology is being written into airlines’ future-widebody fleets years in advance.
    • We’ll now examine how this new GEnx engine order, alongside GE’s recent earnings strength, may influence its broader investment narrative.

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    General Electric Investment Narrative Recap

    To own GE Aerospace today, you need to believe in its ability to convert a large commercial and defense engine backlog into durable, high-margin services while managing supply chain and cost pressures. The Philippine Airlines GEnx order supports the long-term widebody engine story, but its impact on near term results is limited; the more immediate catalyst remains execution on current delivery schedules and services growth, while the biggest risk is any renewed disruption across GE’s supplier base.

    The recent second quarter 2026 earnings are most relevant here, with revenue at US$13,349 million and net income at US$2,370 million, both higher than a year ago. Against that backdrop, the Philippine Airlines deal fits neatly into the broader theme of expanding the GEnx installed base, which, over time, can support additional shop visits and services revenue if GE continues to execute on output, cost control, and reliability targets.

    Yet despite these positives, investors should still pay close attention to the risk that persistent supply chain tightness could...

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    General Electric's narrative projects $59.2 billion revenue and $10.8 billion earnings by 2029.

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    Exploring Other Perspectives

    GE 1-Year Stock Price Chart
    GE 1-Year Stock Price Chart

    Some of the lowest ranked analysts were already cautious, assuming revenue growth of only about 5.6 percent a year and profit margin slippage, and they worry that faster climate policy shifts could curb long haul flying more than markets expect.

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    Form Your Own Verdict

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.