"Boeing entered 2021 still reeling from the 737 MAX grounding, then faced COVID-19 decimating air travel demand, supply chain failures, a door plug blowout in early 2024, and a machinists' strike that produced just 57 commercial deliveries in Q4 2024. The company burned through cash, piled on debt, and suspended its dividend."
"While Boeing was surviving, GE was transforming. The company spun off GE HealthCare in January 2023, then separated its energy business as GE Vernova in April 2024, leaving a lean, pure-play aerospace engine maker. Legacy GE holders who received spinoff shares in those businesses saw their total returns compounded further beyond what the GE Aerospace share price alone reflects."
"The focused business posted $45.86 billion in 2025 revenue, up 18.48%, with free cash flow of $7.69 billion, up 109% year over year. Over five years, a $1,000 Boeing investment declined 8.41% while GE Aerospace surged 382.62%, demonstrating the power of strategic restructuring versus operational crisis management."
Boeing faced compounding crises from 2020 to 2025, including the 737 MAX grounding, COVID-19 demand collapse, supply chain failures, a door plug incident, and a machinists' strike. The company accumulated $54.1 billion in debt, suspended dividends, and maintained negative free cash flow despite CEO Kelly Ortberg's stabilization efforts and 2025 revenue growth to $89.46 billion. Meanwhile, GE transformed through strategic spinoffs: separating GE HealthCare in January 2023 and GE Vernova in April 2024, leaving a focused aerospace engine business. GE Aerospace generated $45.86 billion in 2025 revenue with $7.69 billion in free cash flow, up 109% year-over-year. Over five years, a $1,000 Boeing investment declined 8.41% while GE Aerospace surged 382.62%.
#boeing-vs-ge-comparison #corporate-restructuring-and-spinoffs #aerospace-industry-performance #long-term-investment-returns #operational-crisis-management
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