This Hidden Aerospace Stock Is Up 470% in the Last 5 Years and Just Hit a New All-Time High

According to an old song, breaking up is hard to do. In corporate America, sometimes it's necessary, and when executed properly, breakups and spinoffs can work in shareholders' favor.

GE Aerospace (NYSE: GE) confirms as much. The company is one of three publicly traded entities that made up the old conglomerate known as General Electric. Once one of the most storied companies in U.S. history, "old GE" was officially broken apart in April 2024, with the aerospace division retaining the GE ticker.

GE Aerospace has been a story stock over that past five years. Image source: Getty Images

The aerospace stock returned 473.4% for the five years ending June 29. Leadership is one reason GE Aerospace is soaring. Larry Culp, who orchestrated the GE breakup, stayed on as CEO of the aerospace business, and that's been to investors' benefit. So much so that Barron's recently named him one of the best CEOs in the U.S. Culp's stewardship is vital, but there's more to the story.

GE Aerospace can extend its bullish ways

Asking any stock to tack on another 473% over the next five years after it already accomplished that feat is asking a lot, but GE Aerospace has the potential to build on that momentum. How the industrial stock got here may provide some insight into where it's heading over the long term.

The company's bread and butter is building jet engines, an arena in which it operates as a quasi-duopoly with rival RTX. Of late, GE has been the better operator, avoiding production snafus. While jet engines may not be as exciting as the latest, greatest semiconductor or tech gadgets, it's a profitable business when done right.

GE Aerospace doesn't just deliver jet engines to clients. It makes a mint (75% of commercial engine revenue and almost 100% of profits) in the aftermarket, including parts and servicing. The company's aftermarket prowess is no afterthought. It's the foundation of a $181 billion backlog that implies not only pricing power but also the predictability that investors love.

Shareholders also love the wide moat, which has been a key contributor to the stock's scorching five-year run. GE Aerospace commands 75% of the narrow-body jet engine market and 55% of the wide-body segment.

That's important for multiple reasons. Airlines can't easily swap out engines once planes are ordered, and commercial air travel is expected to grow over the next several years. So rather than considering airline stocks, investors may do well to consider the king of engines: GE Aerospace.

Cash counts, too

Another reason it has been an aerospace darling in recent years and why that status can extend boils down to a simple reason: cash. Free cash flow reached $1.5 billion in the first quarter, and the balance sheet is sturdy.

At the end of 2025, the company had net debt of just $8 billion on a $130 billion balance sheet, and even when accounting for the gross debt figure of $20 billion, GE Aerospace's balance sheet is firmer than those of some rivals.

Long-term investors will appreciate that GE Aerospace prioritizes shareholder returns. Over the next three years, the company could return nearly all of its free cash flow to investors via buybacks and dividends. That doesn't guarantee another 470% gain; it also says management's interests are aligned with those of investors.

Todd Shriber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Aerospace and RTX. The Motley Fool has a disclosure policy.