TransDigm's 47.2% Operating Margin Crushes GE's 21.4%. Why Does GE Still Get the Higher Valuation?

2026-02-20 06:10:00 ET

The global backlog of unfilled aircraft orders tops 17,000 jets. Boeing (NYSE: BA) production delays have stretched delivery timelines, pushing the average fleet age to 15 years. Two of the biggest beneficiaries are GE Aerospace (NYSE: GE) and TransDigm Group (NYSE: TDG) , but they're profiting from it in very different ways.

GE Aerospace has an installed base of about 80,000 commercial and military engines . Once an engine is on a plane, GE collects service revenue from shop visits, spares, and long-term service agreements. Service revenue reached $24 billion in 2025, up 26% year over year, and accounted for 53% of total revenue.

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