GE

Post-spin GE (now essentially pure-play GE Aerospace) is delivering the kind of operational result the bull case required. FY2025 revenue of $45.9B (+18.5% YoY) and net income of $8.70B (+32.8%) reflect a powerful inflection — diluted EPS jumped 35.9% to $8.14, and operating cash flow surged 81.3% to $8.54B, finally catching up to reported earnings. The 19.0% net margin and 46.6% ROE are exceptional for an industrial, and a $7.55B buyback (+29.6%) shrank the share count 2.3%, leveraging EPS growth further. R&D climbed 22.9% to $1.58B, consistent with reinvestment in the LEAP/GE9X engine programs that underpin the aftermarket annuity.

The balance sheet is the soft spot. Liabilities-to-equity at 5.96x looks alarming on its face, but that ratio reflects the deferred-services and pension/insurance run-off liabilities typical of the legacy GE structure rather than pure financial leverage — long-term debt of $20.5B against $12.4B cash and $8.5B annual OCF is manageable. Cash fell 9.0% as buybacks outpaced FCF (OCF $8.54B – capex $1.27B = ~$7.3B FCF vs. $7.55B repurchases), so capital return is now running slightly ahead of internal generation. Equity actually shrank 3.4% YoY despite a record profit year, a direct consequence of buyback intensity at premium multiples.