Forget Boeing. Every Plane Trump Just Sold to China Needs a GE Engine and GE Is Already Making Money

A China-related Boeing order headline suggests 200 aircraft with potential expansion to 750, but recent financial results show pressure. The latest quarter included a core loss per share of $0.20 and free cash flow burn of $1.454 billion, alongside $47.2 billion in consolidated debt. The Commercial Airplanes segment remains at a negative 6.1% operating margin. Certification timelines for the 737-7 and 737-10 have slipped, with first deliveries pushed into 2027, and the 777-9 first delivery also moved into 2027. Even if announced jets are built, cash generation arrives years later, while the stock trades at a forward multiple above 900x earnings. The alternative focus is GE Aerospace, which supplies engines through the CFM joint venture and benefits from global aircraft demand without relying on Boeing’s certification schedule.

"Everyone is talking about Boeing ( NYSE:BA | BA Price Prediction) after President Trump's China trip produced headlines about an initial order for 200 aircraft, with the possibility of expanding the deal to 750, the first major Boeing sale to China in nearly a decade. The financials tell a different story."

"In the most recent quarter, Boeing posted a core loss per share of $0.20 and burned $1.454 billion in free cash flow, while still carrying $47.2 billion in consolidated debt. The Commercial Airplanes segment, the part of the business that's supposed to benefit from the China headlines, is still running at a negative 6.1% operating margin."

"Certification of the 737-7 and 737-10 has slipped, with first deliveries pushed into 2027, and the 777-9's first delivery has slid into 2027 as well. So even if every announced jet eventually gets built, the cash doesn't show up for years. Meanwhile, the shares already trade at a forward multiple north of 900x earnings."

"Here is the smarter angle for a retirement-focused investor: every Boeing narrow-body that eventually flies needs engines, and most of them carry an engine built by the CFM joint venture, half-owned by GE Aerospace ( NYSE:GE). GE Aerospace also powers a huge slice of the Airbus fleet. It is the picks-and-shovels play on global aviation, and it does not need Boeing's certification calendar to cooperate."

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