Aureus
AExcellent

GE Aerospace(GE)

A

Financial data as of Dec 31, 2025Improving · Industrials

FCF Margin15.8%Free Cash Flow / Revenue
Cash Conversion98.1%Operating CF / Net Income
Free Cash Flow$7.3B
Revenue$45.9B
Net Cash-$8.1BNet debt position
Debt / FCF2.8xManageable debt load
Current Ratio1.04Adequate short-term liquidity
YoY FCF Growth+79.6%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (15.8%, 2.8x)
→
+1Strong YoY FCF growth (79.6% YoY)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Strong FCF margin (15.8%)
  • Strong YoY FCF growth (+79.6%)
  • Highly consistent quarterly FCF
  • FCF trend is improving

Concerns

  • Net debt position ($8.1B)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin15.8%
Net Margin19.0%
Operating CF Margin18.6%
CapEx Ratio2.8%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$8.1BNet debt position
Debt / FCF2.8xManageable debt load
Current Ratio1.04Adequate liquidity
Debt / Equity1.10Moderate leverage

Quarterly FCF Trend

+79.6% YoYImproving (+79.6%)

Free cash flow per quarter

Sector Comparison — Industrials

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameGE Aerospace
SectorIndustrials
Free Cash Flow$7.3B
Revenue$45.9B
Net Income$8.7B
Operating Cash Flow$8.5B
Capital Expenditure$1.3B
FCF Margin15.8%
Cash Conversion Rate98.1%
Net Margin19.0%
Total Debt$20.5B
Total Cash$12.4B
Net Cash-$8.1B
Current Ratio1.04
Debt / Equity1.10
Debt / FCF2.8x
YoY FCF Growth+79.6%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

Related Research

All research →
Sector Report4 min read

Industrials: 12 A-Grades Hiding a Debt Problem

The industrials sector looks healthy on the surface — 12 A-grades, 62% of companies improving — but the 6.5x average debt-to-FCF ratio tells a different story. When airlines and legacy manufacturers burn through cash, the sector's balance sheet fragility shows.

Feb 13, 2026
VRSKUNPCSXNSC+10