General Electric Company (GE): BCG Matrix [Dec-2025 Updated]

You're looking at General Electric Company's portfolio right after the major split, and honestly, the picture is sharp: GE Aerospace is printing cash from its 78,000-engine installed base, while new LEAP deliveries are surging 40% in Q3 2025, making them clear Stars and Cows. Still, the story isn't all good; GE Vernova's Wind segment is a massive Question Mark, burning $165 million in Q2 2025 despite holding a $123 billion backlog that needs to be converted, and you've got legacy Steam Power sitting in the Dog quadrant. We've mapped out exactly where the capital is flowing-from the $7.1 billion-$7.3 billion expected Free Cash Flow to the cash-intensive offshore wind struggles-so you can see which parts of the new General Electric Company are set to lead and which need defintely more scrutiny below.

Background of General Electric Company (GE)

You're looking at the current state of General Electric Company (GE), which, as of late 2025, is fundamentally different from the sprawling conglomerate it once was. This transformation involved a strategic split into three distinct, independently traded public companies, a process that has defined the company's recent history.

The major restructuring resulted in the separation of GE HealthCare (spun off earlier), GE Vernova (spun off in April 2024), and the remaining core entity, which is now primarily GE Aerospace. This move was designed to give each business greater strategic flexibility and allow them to better focus on their specific market opportunities.

By 2025, the market is clearly valuing this focus. GE Aerospace, which is the largest remaining piece under the NYSE: GE ticker, has seen its shares reach an all-time high in September 2025, trading above $290 per share. This performance is fueled by strong demand in the aviation sector, particularly for commercial aircraft engines and related services. For instance, in the third quarter of 2025, GE Aerospace reported total revenue of $12.2B.

GE Vernova, the energy technology spin-off, is capitalizing on the massive electricity demand driven by artificial intelligence and data centers. The company affirmed its full-year 2025 revenue guidance to be in the range of $36 billion to $37 billion. Its third-quarter 2025 revenue was $10.0B, showing continued growth trajectory.

Finally, GE HealthCare continues to develop its medical technology portfolio, recently strengthening its neurology offerings with the acquisition of icometrix in 2025. For the third quarter of 2025, GE HealthCare posted revenues of $5.1B, and it is projecting organic revenue growth of approximately 3% for the full year 2025. Honestly, the success of these three focused entities is what defines the current General Electric story.

General Electric Company (GE) - BCG Matrix: Stars

You're looking at the engine of General Electric Company's current growth story, the segment firmly planted in the Star quadrant: GE Aerospace. This business unit operates in a high-growth market-commercial aviation recovery-and maintains a leading market share, which is why it demands significant investment to keep that momentum going.

For the full year 2025, GE Aerospace is guiding for Commercial Engines & Services (CES) equipment revenue growth in the high-teens percentage range. This high-growth trajectory is also reflected in the overall CES segment, which management expects to see revenue growth in the mid-teens for 2025, with services growth in the low-double-digits to mid-teens. Honestly, this is the unit you want to watch because keeping this success means it transitions into a powerful Cash Cow when the market growth inevitably slows.

The core of this Star status is the production ramp, especially for the LEAP engine family. In the third quarter of 2025, LEAP shipments surged, showing a 40% increase year-over-year. This output surge is what drives the high-growth narrative. Here's a snapshot of the engine delivery picture, combining Q3 performance with full-year forecasts:

The commercial aviation rebound is the tailwind here, positioning GE Aerospace strongly. In Q3 2025, the CES unit posted a revenue of $8.9 billion, a 27% jump year-over-year, with equipment sales specifically up 22%. This high-share, high-growth position means cash is flowing in, but it's also being reinvested heavily to fix durability issues and scale production.

Also showing Star-like characteristics, though from the recently spun-off GE Vernova, is the Electrification segment. This area is clearly in a high-growth market, driven by grid infrastructure and decarbonization needs. For the second quarter of 2025, the segment's performance was exceptional:

• Electrification segment revenue grew 20% organically.
• Segment EBITDA margin expanded to 14.6%.
• Segment EBITDA (core profit) nearly doubled, reaching $332.8 million.

The growth in Electrification, with its organic revenue guidance rising to approximately 20% for 2025, shows this unit is aggressively capturing market share in a rapidly expanding sector. It's definitely consuming cash for growth but delivering significant profit upside, fitting the Star profile perfectly.

GE Aerospace's overall operational rhythm is compounding, with material inputs from priority suppliers up 35% year-over-year in Q3 2025, which directly supports meeting this high-demand Star business. Finance: draft 13-week cash view by Friday.

General Electric Company (GE) - BCG Matrix: Cash Cows

You're looking at the bedrock of General Electric Company's financial stability, the units that generate more cash than they consume, allowing the rest of the enterprise to fund growth initiatives. These are the market leaders operating in mature, slow-growth sectors, and for General Electric Company, that stability is heavily concentrated in its services and established power generation businesses.

GE Aerospace Commercial Engine Services (CES) is a prime example. This unit benefits from a massive installed base, which translates directly into high-margin, recurring revenue streams. The installed base is reported at 78,000 engines, split between 49,000 commercial and 29,000 military units, which have collectively logged over 2.3 billion flight hours. This installed base fuels the aftermarket business, which is the definition of a cash cow.

The financial performance in Q3 2025 clearly shows this dynamic at work. Spare parts revenue was up more than 25% in the quarter. This high-margin, recurring revenue stream is the engine supporting the entire aerospace segment's outlook. Management is confident enough to raise the full-year 2025 Free Cash Flow guidance for GE Aerospace to a range of $7.1 billion-$7.3 billion, largely driven by these services.

The services segment profit growth in Q3 2025 was 35%, demonstrating the high profitability of milking this mature asset base. You invest just enough to maintain the fleet and capture the high-margin aftermarket work-that's the strategy here.

Over at GE Vernova, the Gas Power business fits the Cash Cow profile perfectly, operating in a mature market but maintaining a leadership position. While the specific core profit growth figure you mentioned is part of the expected narrative, the Q2 2025 results show clear strength in their established gas portfolio. This business unit is a reliable generator of cash flow, which is crucial as the company navigates the transition in the energy sector.

• GE Vernova Gas Power equipment backlog and slot reservation agreements grew from 50 GW to 55 GW in Q2 2025.
• Total GE Vernova Q2 2025 Orders were $12.4 billion, up 4% organically.
• GE Vernova raised its 2025 Free Cash Flow guidance to $3.0 billion-$3.5 billion.
• GE Vernova Q2 2025 Revenue was $9.1 billion, up 12% organically.

The Power segment EBITDA margin expansion in Q2 2025, alongside the growth in the committed gas pipeline, shows this unit is effectively managed for maximum cash extraction while supporting the broader energy transition goals of GE Vernova. This cash flow is what you need to fund the riskier Question Marks in the portfolio.

General Electric Company (GE) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

For the successor companies of General Electric Company, the 'Dogs' quadrant is primarily represented by the strategic divestiture of non-core or underperforming assets, aligning with the overall corporate strategy of focusing on high-growth areas like Aerospace and the core of Vernova.

GE Vernova's Steam Power business, a declining sub-segment within the Power unit, represents a candidate for minimization. While the broader Power segment showed strength, with Power equipment orders up 43% organically in the first quarter of 2025, and Gas Power equipment backlog and slot reservations growing to 62 GW by the third quarter of 2025, the Steam Power portion is the area requiring disciplined management to avoid becoming a cash drain within the otherwise growing Power portfolio.

Legacy GE Digital/Software assets have largely been addressed through dissolution or sale, reflecting a clear strategy to avoid low-share, low-return digital ventures that failed to gain critical mass. A concrete example of this minimization strategy in 2025 was the sale of GE Vernova's Proficy software division to investment firm TPG for USD 600 million in September 2025, allowing focus on grid software.

Non-core, long-tail legacy liabilities and corporate overhead are managed through the ongoing wind-down of the historical conglomerate structure. The original General Electric Company officially dissolved on April 2, 2024, with assets dispersed to the three independent companies. Historical actions, such as the $9 billion sale of GE Capital's Healthcare Financial Services business in 2015, illustrate the long-term effort to shed non-core financial liabilities.

The concept of low-growth, low-share businesses that require minimal investment but generate minimal returns is best illustrated by the assets that have been actively removed from the core portfolio, as these are the historical equivalents of Dogs.

The strategy for these units is avoidance and minimization. Expensive turn-around plans are generally avoided in favor of divestiture or continued reduction of investment to near-zero, ensuring that capital is not tied up in assets that do not contribute meaningfully to the growth profile established by GE Aerospace and the core of GE Vernova.

• Avoidance of new investment in low-share areas.
• Focus on disciplined underwriting in backlog to prevent future cash traps.
• Continued execution of lean culture to reduce overhead drag.
• Divestiture of non-core software assets like Proficy.

Finance: draft 13-week cash view by Friday.

General Electric Company (GE) - BCG Matrix: Question Marks

You're looking at the segment of General Electric Company (GE) business that is burning cash now but sits in a market everyone expects to boom. This is the classic Question Mark profile, and for GE, that squarely points to GE Vernova's Wind segment, operating in the high-growth renewable energy market.

This segment is caught in the middle of the so-called electrification supercycle, which suggests high market growth potential. However, this potential hasn't translated into positive results yet. For the second quarter of 2025, GE Vernova's Wind segment posted a core loss of \$165 million. This negative profitability is a key characteristic of a Question Mark that needs immediate strategic attention.

The challenges are concentrated, defintely, in specific areas. Offshore Wind projects are particularly cash-intensive. These projects are struggling under the weight of tariffs and high service costs associated with maintaining the existing fleet. To manage this, the company has already invested more than \$100 million to improve the performance of its installed wind turbine base, which numbers approximately 57,000 units worldwide.

The core issue is converting the massive pipeline of work into actual profit. This requires significant capital investment to fix operational issues and convert the stated \$123 billion backlog into realized revenue and positive returns. If market share isn't gained quickly, or if the operational fixes don't stick, this unit risks slipping into the Dog quadrant.

Here's a quick look at the financial snapshot for the Wind segment as of the mid-2025 reporting period:

The market growth prospects are undeniable, especially in emerging areas. For instance, the global floating offshore wind market is projected to grow at a compound annual rate of 31.5% from 2025 to 2034. Still, the current reality is cash consumption.

The strategic choices for this unit revolve around heavy investment or divestiture, based on the potential for market share capture. Key factors influencing this decision include:

• The impact of tariffs, which are anticipated to cost the segment in the lower end of the \$300 million to \$400 million range for the full year 2025.
• The need to improve Onshore Wind services costs and fleet performance.
• The low market share in the US Offshore Wind segment, holding only 11% of projects selecting a supplier in 2024.
• The expectation that the Wind segment will approach breakeven in the second half of 2025.

Finance: draft scenario analysis comparing investment required to capture 5% market share versus immediate sale valuation by next Wednesday.