Defense & Propulsion TechnologiesNarrow moat

GE Aerospace (GE) — moat facet

The steadier half: it grew through the pandemic and has grown since without earning much more per dollar.

Defense & Propulsion Technologies is GE Aerospace's second segment, and the one with less pricing power. It had revenue of $10,554 million in 2025 and segment profit of $1,296 million, a margin of 12.3%.1

Defense & Propulsion Technologies revenue growth, 2022 to 2025 (%)+50.6%Equipment+18.4%Services+55.3%Propulsion& Additive+21.2%Defense &Systems+32.1%SegmentGE Aerospace Forms 10-K FY2024 and FY2025, segment operations
The growth came from equipment and from the component businesses, not from services.

It contains two businesses. Defense & Systems, $6,574 million in 2025, designs, builds and services engines for fighters, bombers, tankers, helicopters and ships, plus avionics and power systems. Propulsion & Additive Technologies, $3,980 million, sells components and systems under the Avio Aero, Unison, Dowty Propellers and Colibrium Additive brands.2 Most Defense & Systems revenue comes from money that flows through the United States defence budget or its equivalents abroad.3

It is the steadier half. When air travel stopped in 2020, GE's old Military line rose from $4,389 million to $4,572 million, about 4%, while commercial engines fell about 42%, as reported then.45 The same year the whole aviation segment earned 5.6%.6

Growth since 2022 has come from the smaller business and from equipment. Segment revenue rose from $7,989 million in 2022 to $10,554 million in 2025, about 32%; Propulsion & Additive Technologies rose about 55%, from $2,563 million, and Defense & Systems about 21%, from $5,426 million.789 Equipment revenue grew about 51%, from $3,405 million to $5,128 million, and services about 18%, from $4,584 million to $5,426 million, so services fell from 57% of the segment to 51%.101112

The margin has not moved much. It was 12.2% in 2022, 10.1% in 2023, 11.2% in 2024 and 12.3% in 2025.1314 Deliveries of defence engines went 632, 556, 490 and 635 across the four years, so the 2025 improvement came in a year of more shipments, higher prices and better mix.1516

The order book has grown faster than revenue. Remaining performance obligation reached $20,742 million at the end of 2025, from $16,468 million two years earlier, and most of the increase was equipment.17 In the first half of 2026 orders rose 40% to $10,312 million.18 In the June quarter revenue rose 16% to $3,443 million and profit 18% to $475 million, a margin of 13.8% against 13.5%; Propulsion & Additive Technologies grew 23%, led by Avio Aero.19 From 2026 the segment also carries the Aeroderivative business, moved over from commercial on 15 January.20

For 2026 GE expects revenue growth in the low double digits and operating profit of $1.6-$1.7 billion.21 The verdict on this segment is that it is growing without getting richer, and the reason is structural rather than managerial; the full argument is under The Defence Half. The number to watch is the margin, 12.3% in 2025: if equipment keeps growing faster than services, it will have trouble rising far above that.

Moat trajectory: Holding steady

Margin between 10.1% and 12.3% for four years while revenue grew about 32%.

The number that tests this moat
Reported
Defense & Propulsion Technologies orders, first half
$10,312M in H1 2026, up 40%

Orders running well ahead of revenue growth point to faster growth; a reversal would expose how much of the segment rests on budget cycles.

Source: GE Aerospace second-quarter 2026 earnings release ↗
References
  1. ReportedIt had revenue of $10,554 million in 2025 and segment profit of $1,296 million, a margin of 12.3%.
    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. ReportedPropulsion & Additive Technologies, $3,980 million, sells components and systems under the Avio Aero, Unison, Dowty Propellers and Colibrium Additive brands.
    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. ReportedMost Defense & Systems revenue comes from money that flows through the United States defence budget or its equivalents abroad.
    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 ↗
  4. ReportedWhen air travel stopped in 2020, GE's old Military line rose from $4,389 million to $4,572 million, about 4%, while commercial engines fell about 42%, 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 ↗
  5. Moat Explorer calcWhen air travel stopped in 2020, GE's old Military line rose from $4,389 million to $4,572 million, about 4%, while commercial engines fell about 42%, 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 ↗
  6. ReportedThe same year the whole aviation segment earned 5.6%.
    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 ↗
  7. ReportedSegment revenue rose from $7,989 million in 2022 to $10,554 million in 2025, about 32%; Propulsion & Additive Technologies rose about 55%, from $2,563 million, and Defense & Systems about 21%, from $5,426 million.
    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 ↗
  8. ReportedSegment revenue rose from $7,989 million in 2022 to $10,554 million in 2025, about 32%; Propulsion & Additive Technologies rose about 55%, from $2,563 million, and Defense & Systems about 21%, from $5,426 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 ↗
  9. Moat Explorer calcSegment revenue rose from $7,989 million in 2022 to $10,554 million in 2025, about 32%; Propulsion & Additive Technologies rose about 55%, from $2,563 million, and Defense & Systems about 21%, from $5,426 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 ↗
  10. ReportedEquipment revenue grew about 51%, from $3,405 million to $5,128 million, and services about 18%, from $4,584 million to $5,426 million, so services fell from 57% of the segment to 51%.
    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 ↗
  11. ReportedEquipment revenue grew about 51%, from $3,405 million to $5,128 million, and services about 18%, from $4,584 million to $5,426 million, so services fell from 57% of the segment to 51%.
    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 ↗
  12. Moat Explorer calcEquipment revenue grew about 51%, from $3,405 million to $5,128 million, and services about 18%, from $4,584 million to $5,426 million, so services fell from 57% of the segment to 51%.
    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 ↗
  13. ReportedIt was 12.2% in 2022, 10.1% in 2023, 11.2% in 2024 and 12.3% in 2025.
    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 ↗
  14. ReportedIt was 12.2% in 2022, 10.1% in 2023, 11.2% in 2024 and 12.3% in 2025.
    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. ReportedDeliveries of defence engines went 632, 556, 490 and 635 across the four years, so the 2025 improvement came in a year of more shipments, higher prices and better mix.
    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 ↗
  16. ReportedDeliveries of defence engines went 632, 556, 490 and 635 across the four years, so the 2025 improvement came in a year of more shipments, higher prices and better mix.
    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 ↗
  17. ReportedRemaining performance obligation reached $20,742 million at the end of 2025, from $16,468 million two years earlier, and most of the increase was equipment.
    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 ↗
  18. ReportedIn the first half of 2026 orders rose 40% to $10,312 million.
    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 ↗
  19. ReportedIn the June quarter revenue rose 16% to $3,443 million and profit 18% to $475 million, a margin of 13.8% against 13.5%; Propulsion & Additive Technologies grew 23%, led by Avio Aero.
    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 ↗
  20. ReportedFrom 2026 the segment also carries the Aeroderivative business, moved over from commercial on 15 January.
    GE Aerospace Form 10-Q for the quarter ended June 30, 2026 - on January 15, 2026 CES was expanded to the entire commercial engine lifecycle and the Aeroderivative business moved from CES to DPT; segment results for the three and six months — Q2 2026 · publ. July 2026 · source ↗
  21. ReportedFor 2026 GE expects revenue growth in the low double digits and operating profit of $1.6-$1.7 billion.
    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