Commercial Engines & ServicesWide moat

GE Aerospace (GE) — moat facet

Revenue down 42% in 2020 and up 77% since 2022, because three dollars in four come from engines already flying.

Commercial Engines & Services is the business the market pays for. It had revenue of $33,314 million in 2025 and segment profit of $8,861 million, a margin of 26.6%.1 Services were $25,010 million of the revenue, about 75%, and equipment $8,304 million.23

Commercial Engines & Services revenue ($m)$24,769m2019$14,479m2020$14,360m2021$18,813m2022$23,855m2023$26,881m2024$33,314m2025GE Forms 10-K FY2021, FY2024, FY2025; 2019-21 as reported then
Down 42% in 2020, then up 77% from 2022 to 2025.

The segment designs, builds and services jet engines for commercial aircraft, business jets and, until 2026, aeroderivative uses; services means overhauls, spare parts and repair under long-term service agreements, spare-parts agreements or time-and-materials contracts, sold to airlines, airframers and third-party repair shops.4 Most of the narrowbody engines are LEAPs built through CFM, the joint venture with Safran, and that relationship has its own pages under The Moat.

The history has one hole in it. Under GE's old reporting, commercial engines and services brought in $24,769 million in 2019, then $14,479 million in 2020, down about 42%, and $14,360 million in 2021, as reported then.56 The whole aviation business still earned $1,229 million in 2020, a 5.6% margin.7 Engines already in service earn only when they fly, and in 2020 they mostly did not.

Recovery since has been fast and has come mostly from services. On the current basis revenue rose from $18,813 million in 2022 to $33,314 million in 2025, about 21% a year; services grew from $13,688 million to $25,010 million, about 83%, and equipment from $5,125 million to $8,304 million, about 62%.8910 Segment profit more than doubled, from $4,164 million to $8,861 million, and the margin rose from 22.1% to 26.6%.1112

The filing gives the reasons in order. In 2025 revenue rose on more spare parts, more and heavier shop visits, more engine deliveries and pricing, and profit rose on the first three, partly offset by more new engines, which are sold near or below cost, inflation, growth spending and a lower estimated profitability on long-term service agreements.13 Commercial engine deliveries rose from 1,911 to 2,386, LEAPs from 1,407 to 1,802, and internal shop-visit revenue grew 24%.14

The backlog is mostly service. Commercial remaining performance obligation was $169,822 million at the end of 2025, of which $156,068 million was services, against $137,535 million two years earlier.15

The latest quarter shows the cost of shipping more engines. In the three months to 30 June 2026 revenue rose 27% to $9,731 million and profit 20% to $2,657 million, while the margin fell from 28.9% to 27.3%, which GE attributes to more new engines including the GE9X, investment and inflation.16 Spare-parts revenue grew over 25% and equipment 30%.17 For 2026 GE expects revenue growth of about 20%, with services growth in the low 20s.18

Margins falling while engines ramp is not a warning in itself: each engine sold at a loss today is a service stream later, argued under The Engine Is Sold at a Loss. The test is whether services keep outgrowing equipment. Services grew 26% in the June quarter against 30% for equipment; if the order reverses for a full year, the installed base is being built faster than it is being serviced.

Moat trajectory: Widening

Services revenue up 83% since 2022 and margin up from 22.1% to 26.6%, though the June 2026 quarter margin dipped on the delivery ramp.

The number that tests this moat
Reported
Commercial Engines & Services operating profit margin, first half
26.9% in H1 2026, from 28.8%

The margin falls while new engines, sold near cost, ramp; a fall that outlasts the ramp would mean the service stream is not keeping up.

Source: GE Aerospace second-quarter 2026 earnings release ↗
References
  1. ReportedIt had revenue of $33,314 million in 2025 and segment profit of $8,861 million, a margin of 26.6%.
    GE Aerospace Form 10-K FY2025 - segment operations 2023-2025: Commercial Engines & Services equipment $6,169M/$7,106M/$8,304M, services $17,686M/$19,775M/$25,010M, revenue $23,855M/$26,881M/$33,314M, profit $5,643M/$7,055M/$8,861M, margin 23.7%/26.2%/26.6%, commercial engines 2,075/1,911/2,386, LEAP 1,570/1,407/1,802, internal shop visit revenue growth 27%/19%/24%, CES RPO $137,535M/$153,644M/$169,822M (services $156,068M in 2025); Defense & Propulsion Technologies D&S $5,927M/$6,109M/$6,574M, P&AT $3,034M/$3,370M/$3,980M, revenue $8,961M/$9,478M/$10,554M, equipment $5,128M and services $5,426M (2025), profit $908M/$1,061M/$1,296M, margin 10.1%/11.2%/12.3%, defence engines 556/490/635, DPT RPO $16,468M/$17,991M/$20,742M; CES approximately 73% of total revenue; segment descriptions and drivers — FY2023-FY2025 · publ. February 2026 · source ↗
  2. ReportedServices were $25,010 million of the revenue, about 75%, and equipment $8,304 million.
    GE Aerospace Form 10-K FY2025 - segment operations 2023-2025: Commercial Engines & Services equipment $6,169M/$7,106M/$8,304M, services $17,686M/$19,775M/$25,010M, revenue $23,855M/$26,881M/$33,314M, profit $5,643M/$7,055M/$8,861M, margin 23.7%/26.2%/26.6%, commercial engines 2,075/1,911/2,386, LEAP 1,570/1,407/1,802, internal shop visit revenue growth 27%/19%/24%, CES RPO $137,535M/$153,644M/$169,822M (services $156,068M in 2025); Defense & Propulsion Technologies D&S $5,927M/$6,109M/$6,574M, P&AT $3,034M/$3,370M/$3,980M, revenue $8,961M/$9,478M/$10,554M, equipment $5,128M and services $5,426M (2025), profit $908M/$1,061M/$1,296M, margin 10.1%/11.2%/12.3%, defence engines 556/490/635, DPT RPO $16,468M/$17,991M/$20,742M; CES approximately 73% of total revenue; segment descriptions and drivers — FY2023-FY2025 · publ. February 2026 · source ↗
  3. Moat Explorer calcServices were $25,010 million of the revenue, about 75%, and equipment $8,304 million.
    Moat Explorer calculation from GE Aerospace's Forms 10-K FY2021, FY2024 and FY2025: segment shares of revenue and profit, growth rates and compound growth, services share of segment revenue — FY2019 to FY2025 · publ. 2026-09-23 · source ↗
  4. ReportedThe segment designs, builds and services jet engines for commercial aircraft, business jets and, until 2026, aeroderivative uses; services means overhauls, spare parts and repair under long-term service agreements, spare-parts agreements or time-and-materials contracts, sold to airlines, airframers and third-party repair shops.
    GE Aerospace Form 10-K FY2025 - segment operations 2023-2025: Commercial Engines & Services equipment $6,169M/$7,106M/$8,304M, services $17,686M/$19,775M/$25,010M, revenue $23,855M/$26,881M/$33,314M, profit $5,643M/$7,055M/$8,861M, margin 23.7%/26.2%/26.6%, commercial engines 2,075/1,911/2,386, LEAP 1,570/1,407/1,802, internal shop visit revenue growth 27%/19%/24%, CES RPO $137,535M/$153,644M/$169,822M (services $156,068M in 2025); Defense & Propulsion Technologies D&S $5,927M/$6,109M/$6,574M, P&AT $3,034M/$3,370M/$3,980M, revenue $8,961M/$9,478M/$10,554M, equipment $5,128M and services $5,426M (2025), profit $908M/$1,061M/$1,296M, margin 10.1%/11.2%/12.3%, defence engines 556/490/635, DPT RPO $16,468M/$17,991M/$20,742M; CES approximately 73% of total revenue; segment descriptions and drivers — FY2023-FY2025 · publ. February 2026 · source ↗
  5. ReportedUnder GE's old reporting, commercial engines and services brought in $24,769 million in 2019, then $14,479 million in 2020, down about 42%, and $14,360 million in 2021, as reported then.
    General Electric Company Form 10-K FY2021 - Aviation segment 2019-2021 as reported then: Commercial Engines & Services $24,769M/$14,479M/$14,360M, Military $4,389M/$4,572M/$4,136M, Systems & Other $3,718M/$2,991M/$2,814M, total Aviation revenue $32,875M/$22,042M/$21,310M, segment profit $6,812M/$1,229M/$2,882M, margin 20.7%/5.6%/13.5% — FY2019-FY2021 · publ. February 2022 · source ↗
  6. Moat Explorer calcUnder GE's old reporting, commercial engines and services brought in $24,769 million in 2019, then $14,479 million in 2020, down about 42%, and $14,360 million in 2021, as reported then.
    Moat Explorer calculation from GE Aerospace's Forms 10-K FY2021, FY2024 and FY2025: segment shares of revenue and profit, growth rates and compound growth, services share of segment revenue — FY2019 to FY2025 · publ. 2026-09-23 · source ↗
  7. ReportedThe whole aviation business still earned $1,229 million in 2020, a 5.6% margin.
    General Electric Company Form 10-K FY2021 - Aviation segment 2019-2021 as reported then: Commercial Engines & Services $24,769M/$14,479M/$14,360M, Military $4,389M/$4,572M/$4,136M, Systems & Other $3,718M/$2,991M/$2,814M, total Aviation revenue $32,875M/$22,042M/$21,310M, segment profit $6,812M/$1,229M/$2,882M, margin 20.7%/5.6%/13.5% — FY2019-FY2021 · publ. February 2022 · source ↗
  8. ReportedOn the current basis revenue rose from $18,813 million in 2022 to $33,314 million in 2025, about 21% a year; services grew from $13,688 million to $25,010 million, about 83%, and equipment from $5,125 million to $8,304 million, about 62%.
    GE Aerospace Form 10-K FY2024 - segment operations 2022-2024: Commercial Engines & Services equipment $5,125M, services $13,688M, revenue $18,813M, profit $4,164M, margin 22.1% (2022); Defense & Propulsion Technologies D&S $5,426M, P&AT $2,563M, revenue $7,989M, equipment $3,405M, services $4,584M, profit $976M, margin 12.2% (2022); defence engines 632 (2022) — FY2022-FY2024 · publ. February 2025 · source ↗
  9. ReportedOn the current basis revenue rose from $18,813 million in 2022 to $33,314 million in 2025, about 21% a year; services grew from $13,688 million to $25,010 million, about 83%, and equipment from $5,125 million to $8,304 million, about 62%.
    GE Aerospace Form 10-K FY2025 - segment operations 2023-2025: Commercial Engines & Services equipment $6,169M/$7,106M/$8,304M, services $17,686M/$19,775M/$25,010M, revenue $23,855M/$26,881M/$33,314M, profit $5,643M/$7,055M/$8,861M, margin 23.7%/26.2%/26.6%, commercial engines 2,075/1,911/2,386, LEAP 1,570/1,407/1,802, internal shop visit revenue growth 27%/19%/24%, CES RPO $137,535M/$153,644M/$169,822M (services $156,068M in 2025); Defense & Propulsion Technologies D&S $5,927M/$6,109M/$6,574M, P&AT $3,034M/$3,370M/$3,980M, revenue $8,961M/$9,478M/$10,554M, equipment $5,128M and services $5,426M (2025), profit $908M/$1,061M/$1,296M, margin 10.1%/11.2%/12.3%, defence engines 556/490/635, DPT RPO $16,468M/$17,991M/$20,742M; CES approximately 73% of total revenue; segment descriptions and drivers — FY2023-FY2025 · publ. February 2026 · source ↗
  10. Moat Explorer calcOn the current basis revenue rose from $18,813 million in 2022 to $33,314 million in 2025, about 21% a year; services grew from $13,688 million to $25,010 million, about 83%, and equipment from $5,125 million to $8,304 million, about 62%.
    Moat Explorer calculation from GE Aerospace's Forms 10-K FY2021, FY2024 and FY2025: segment shares of revenue and profit, growth rates and compound growth, services share of segment revenue — FY2019 to FY2025 · publ. 2026-09-23 · source ↗
  11. ReportedSegment profit more than doubled, from $4,164 million to $8,861 million, and the margin rose from 22.1% to 26.6%.
    GE Aerospace Form 10-K FY2024 - segment operations 2022-2024: Commercial Engines & Services equipment $5,125M, services $13,688M, revenue $18,813M, profit $4,164M, margin 22.1% (2022); Defense & Propulsion Technologies D&S $5,426M, P&AT $2,563M, revenue $7,989M, equipment $3,405M, services $4,584M, profit $976M, margin 12.2% (2022); defence engines 632 (2022) — FY2022-FY2024 · publ. February 2025 · source ↗
  12. ReportedSegment profit more than doubled, from $4,164 million to $8,861 million, and the margin rose from 22.1% to 26.6%.
    GE Aerospace Form 10-K FY2025 - segment operations 2023-2025: Commercial Engines & Services equipment $6,169M/$7,106M/$8,304M, services $17,686M/$19,775M/$25,010M, revenue $23,855M/$26,881M/$33,314M, profit $5,643M/$7,055M/$8,861M, margin 23.7%/26.2%/26.6%, commercial engines 2,075/1,911/2,386, LEAP 1,570/1,407/1,802, internal shop visit revenue growth 27%/19%/24%, CES RPO $137,535M/$153,644M/$169,822M (services $156,068M in 2025); Defense & Propulsion Technologies D&S $5,927M/$6,109M/$6,574M, P&AT $3,034M/$3,370M/$3,980M, revenue $8,961M/$9,478M/$10,554M, equipment $5,128M and services $5,426M (2025), profit $908M/$1,061M/$1,296M, margin 10.1%/11.2%/12.3%, defence engines 556/490/635, DPT RPO $16,468M/$17,991M/$20,742M; CES approximately 73% of total revenue; segment descriptions and drivers — FY2023-FY2025 · publ. February 2026 · source ↗
  13. ReportedIn 2025 revenue rose on more spare parts, more and heavier shop visits, more engine deliveries and pricing, and profit rose on the first three, partly offset by more new engines, which are sold near or below cost, inflation, growth spending and a lower estimated profitability on long-term service agreements.
    GE Aerospace Form 10-K FY2025 - segment operations 2023-2025: Commercial Engines & Services equipment $6,169M/$7,106M/$8,304M, services $17,686M/$19,775M/$25,010M, revenue $23,855M/$26,881M/$33,314M, profit $5,643M/$7,055M/$8,861M, margin 23.7%/26.2%/26.6%, commercial engines 2,075/1,911/2,386, LEAP 1,570/1,407/1,802, internal shop visit revenue growth 27%/19%/24%, CES RPO $137,535M/$153,644M/$169,822M (services $156,068M in 2025); Defense & Propulsion Technologies D&S $5,927M/$6,109M/$6,574M, P&AT $3,034M/$3,370M/$3,980M, revenue $8,961M/$9,478M/$10,554M, equipment $5,128M and services $5,426M (2025), profit $908M/$1,061M/$1,296M, margin 10.1%/11.2%/12.3%, defence engines 556/490/635, DPT RPO $16,468M/$17,991M/$20,742M; CES approximately 73% of total revenue; segment descriptions and drivers — FY2023-FY2025 · publ. February 2026 · source ↗
  14. ReportedCommercial engine deliveries rose from 1,911 to 2,386, LEAPs from 1,407 to 1,802, and internal shop-visit revenue grew 24%.
    GE Aerospace Form 10-K FY2025 - segment operations 2023-2025: Commercial Engines & Services equipment $6,169M/$7,106M/$8,304M, services $17,686M/$19,775M/$25,010M, revenue $23,855M/$26,881M/$33,314M, profit $5,643M/$7,055M/$8,861M, margin 23.7%/26.2%/26.6%, commercial engines 2,075/1,911/2,386, LEAP 1,570/1,407/1,802, internal shop visit revenue growth 27%/19%/24%, CES RPO $137,535M/$153,644M/$169,822M (services $156,068M in 2025); Defense & Propulsion Technologies D&S $5,927M/$6,109M/$6,574M, P&AT $3,034M/$3,370M/$3,980M, revenue $8,961M/$9,478M/$10,554M, equipment $5,128M and services $5,426M (2025), profit $908M/$1,061M/$1,296M, margin 10.1%/11.2%/12.3%, defence engines 556/490/635, DPT RPO $16,468M/$17,991M/$20,742M; CES approximately 73% of total revenue; segment descriptions and drivers — FY2023-FY2025 · publ. February 2026 · source ↗
  15. ReportedCommercial remaining performance obligation was $169,822 million at the end of 2025, of which $156,068 million was services, against $137,535 million two years earlier.
    GE Aerospace Form 10-K FY2025 - segment operations 2023-2025: Commercial Engines & Services equipment $6,169M/$7,106M/$8,304M, services $17,686M/$19,775M/$25,010M, revenue $23,855M/$26,881M/$33,314M, profit $5,643M/$7,055M/$8,861M, margin 23.7%/26.2%/26.6%, commercial engines 2,075/1,911/2,386, LEAP 1,570/1,407/1,802, internal shop visit revenue growth 27%/19%/24%, CES RPO $137,535M/$153,644M/$169,822M (services $156,068M in 2025); Defense & Propulsion Technologies D&S $5,927M/$6,109M/$6,574M, P&AT $3,034M/$3,370M/$3,980M, revenue $8,961M/$9,478M/$10,554M, equipment $5,128M and services $5,426M (2025), profit $908M/$1,061M/$1,296M, margin 10.1%/11.2%/12.3%, defence engines 556/490/635, DPT RPO $16,468M/$17,991M/$20,742M; CES approximately 73% of total revenue; segment descriptions and drivers — FY2023-FY2025 · publ. February 2026 · source ↗
  16. ReportedIn the three months to 30 June 2026 revenue rose 27% to $9,731 million and profit 20% to $2,657 million, while the margin fell from 28.9% to 27.3%, which GE attributes to more new engines including the GE9X, investment and inflation.
    GE Aerospace second-quarter 2026 earnings release (Exhibit 99.1, Form 8-K of July 16, 2026) - CES orders $12,932M (+18%), revenue $9,731M (+27%), operating profit $2,657M (+20%), margin 27.3% against 28.9%; six months revenue $18,650M (+30%), profit $5,012M; services +26%, spare parts over 25%, equipment +30%; 2026 CES revenue growth ~20%, services low 20s, operating profit $10.25-$10.35B; DPT orders $4,138M (+12%), six months $10,312M (+40%), revenue $3,443M (+16%), six months $6,657M (+17%), profit $475M (+18%), margin 13.8% against 13.5%, P&AT +23% on Avio Aero; 2026 DPT revenue growth low double digits, operating profit $1.6-$1.7B — Q2 2026 · publ. July 2026 · source ↗
  17. ReportedSpare-parts revenue grew over 25% and equipment 30%.
    GE Aerospace second-quarter 2026 earnings release (Exhibit 99.1, Form 8-K of July 16, 2026) - CES orders $12,932M (+18%), revenue $9,731M (+27%), operating profit $2,657M (+20%), margin 27.3% against 28.9%; six months revenue $18,650M (+30%), profit $5,012M; services +26%, spare parts over 25%, equipment +30%; 2026 CES revenue growth ~20%, services low 20s, operating profit $10.25-$10.35B; DPT orders $4,138M (+12%), six months $10,312M (+40%), revenue $3,443M (+16%), six months $6,657M (+17%), profit $475M (+18%), margin 13.8% against 13.5%, P&AT +23% on Avio Aero; 2026 DPT revenue growth low double digits, operating profit $1.6-$1.7B — Q2 2026 · publ. July 2026 · source ↗
  18. ReportedFor 2026 GE expects revenue growth of about 20%, with services growth in the low 20s.
    GE Aerospace second-quarter 2026 earnings release (Exhibit 99.1, Form 8-K of July 16, 2026) - CES orders $12,932M (+18%), revenue $9,731M (+27%), operating profit $2,657M (+20%), margin 27.3% against 28.9%; six months revenue $18,650M (+30%), profit $5,012M; services +26%, spare parts over 25%, equipment +30%; 2026 CES revenue growth ~20%, services low 20s, operating profit $10.25-$10.35B; DPT orders $4,138M (+12%), six months $10,312M (+40%), revenue $3,443M (+16%), six months $6,657M (+17%), profit $475M (+18%), margin 13.8% against 13.5%, P&AT +23% on Avio Aero; 2026 DPT revenue growth low double digits, operating profit $1.6-$1.7B — Q2 2026 · publ. July 2026 · source ↗
Sources
Generated September 23, 2026