GE's Aerospace and Electrical Divisions Deliver a Banner 2025: What's Driving the Momentum?

When General Electric split into three independent companies in 2024, investors gained a clearer lens to evaluate its distinct business units. Among the trio, two standout performers delivered exceptional results in 2025—and there’s compelling evidence they could extend this banner run into 2026 and beyond.

GE Aerospace (NYSE: GE) soared approximately 85% in 2025, while its sibling GE Vernova (NYSE: GEV), a leading electrical power equipment manufacturer, climbed an impressive 95%. For context, the S&P 500 gained about 17% over the same period, meaning both companies dramatically outpaced the broader market. The third spinoff, GE HealthCare Technologies, meanwhile, has lagged by comparison.

These gains didn’t materialize in a vacuum. They reflect structural tailwinds that appear set to persist through the end of this decade.

Aerospace Industry Faces a Structural Supply Shortage

GE Aerospace has positioned itself at the nexus of a powerful supply-demand mismatch in commercial aviation. Commercial air travel expanded more than 10% from 2023 to 2024 and is projected to grow 4.2% annually through 2030. Yet the aviation industry remains hamstrung by insufficient aircraft, components, and maintenance capacity.

The bottleneck is severe. Aircraft engine maintenance and repair have become a critical constraint on the entire industry, according to consulting firm Bain & Company. Shop turnaround times have surged 35% for legacy engines and 150% for next-generation engines. These supply challenges won’t peak until mid-2026 and are expected to persist through 2030.

Management projects double-digit annual revenue expansion from 2025 through 2028, with earnings per share rising from $6.10 in 2025 to $8.40 in 2028. If realized, this trajectory would translate into substantial shareholder value creation.

Electrical Power Equipment: A Market Drowning in Demand

GE Vernova operates in an equally compelling landscape. The company’s order backlog surged $6.5 billion to reach $26 billion, reflecting explosive demand for grid infrastructure and electrical equipment. In December, management raised its long-term ambitions, expecting total backlog to expand from $135 billion to $200 billion by 2028.

This growth engine is fueled by a secular shift toward electrification and the voracious energy appetite of artificial intelligence data centers. As companies worldwide scramble to build out electrical infrastructure, GE Vernova’s position as an industry leader becomes increasingly valuable.

The company is also returning capital aggressively. Management doubled its quarterly dividend to 50 cents per share and increased its stock buyback authorization to $10 billion from $6 billion. These moves signal confidence in sustained profitability and cash generation.

The Case for Continued Outperformance

Both divisions benefit from multi-year growth drivers that extend far beyond cyclical factors. GE Aerospace is addressing a structural shortage that won’t resolve quickly, while GE Vernova is capitalizing on decades-long electrification trends. Neither company faces significant competitive displacement risk in their respective domains.

That said, valuations matter. After posting banner results in 2025, both stocks have appreciated considerably. Prospective investors should weigh current price levels against future earnings potential. The runway for growth appears genuine, but it’s increasingly priced into both securities.

The original General Electric has transformed into three distinct investment vehicles. Two of them have emerged as compelling opportunities for those seeking exposure to aviation maintenance demand and global electrical infrastructure buildout. Whether 2025’s exceptional performance extends into 2026 will depend on execution, but the underlying market dynamics remain decidedly favorable.