GE Aerospace: One Of My Highest Conviction Long-Term Compounders

GE Aerospace remains a top industrial compounder with 75% commercial engine market share and robust secular tailwinds in both commercial and defense segments. Despite Q1 '26 beats—orders up 90%, adjusted revenue up 29%, and EPS up 25%—GE did not raise guidance due to Middle East conflict and inflation risks. GE's backlog exceeds $210 billion, with strong defense demand offsetting commercial headwinds; FLIGHT DECK program drives service revenue and high free cash flow conversion.