GENERAL ELECTRIC CO

General Electric is a diversified industrial company that designs, manufactures and services capital goods—notably aircraft engines, power‑generation turbines, renewable‑energy equipment and medical‑imaging systems. It generates revenue from equipment sales, long‑term service agreements and aftermarket parts and services, with a material portion of profits coming from recurring service and spare‑parts revenue.^[1]

Business Segments

• Aerospace: commercial and military jet engines plus aftermarket maintenance, repair and overhaul (approx. ~47% of total revenue).^[2]
• Power: gas and steam turbines, grid equipment and plant services (approx. ~26% of total revenue).^[2]
• Renewable Energy: onshore/offshore wind turbines, hydro and related services (approx. ~22% of total revenue).^[2]
• Insurance/Other: run‑off insurance and residual items, a small share of consolidated revenue (single‑digit percentage).^[2]

Competitive Position

• Scale and installed base: leadership in large‑engine and turbine platforms creates a deep installed base and a steady aftermarket for spare parts and long‑term service contracts.^[3]
• Engineering know‑how and IP: extensive R&D, patents and decades of engineering experience raise switching costs for major customers and support differentiated product performance.^[3]
• Global services network: a worldwide service and MRO footprint supports recurring revenue and customer relationships across aviation and power markets.^[4]

Investment Considerations

• Recurring service revenue: a meaningful portion of margin and cash flow is driven by aftermarket parts and long‑term service agreements, which can stabilize earnings versus volatile equipment sales.^[2]
• Capital intensity and cyclical demand: equipment manufacturing is capital‑intensive and sensitive to commercial aviation cycles, energy project timing and capital spending by utilities.^[2]
• Technology and regulatory risk: product quality, cybersecurity and evolving environmental rules (decarbonization financing and incentives) can affect demand and project economics.^[2]
• Analyst/valuation variance: market views differ on growth prospects and valuation, so investors should weigh long‑term service durability against capital and execution risks.^[5]