GGEGE Aerospace

After the conglomerate split, GE Aerospace makes aircraft engines and lives off servicing the fleet already sold.

The historical conglomerate was split into three independent companies — aerospace, energy and medical technology. What remains under this ticker builds engines for commercial and military aviation, partly through a joint venture with France's Safran.

The economics work like razors and blades: the engine is sold at minimal or negative margin, and the money comes from servicing it across decades of operation. The key metric is therefore not engines sold but flight hours flown by the existing fleet, which determines aftermarket revenue.

Hence sensitivity to air traffic and, separately, to the pace of aircraft deliveries by the airframe makers. Supply-chain constraints of recent years have held back both output and service. The company resumed dividend payments after the restructuring.