GE · Forward model · Defense & Propulsion Technologies
What has to happen in Defense & Propulsion Technologies
Model as of
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Defense & Propulsion Technologies
Basis quarter$3.44B
Final quarter$4.33B
Implied CAGR+5%
Final revenue mix25%
Military propulsion and Avio Aero: F110, F404, F414, T700 and T901 engines, next-generation adaptive-cycle programmes such as the XA102 and GE426, and the Aeroderivative business moved in from CES for 2026. Contract-priced and budget-paced rather than fleet-paced, it runs at roughly half the CES operating margin and grew 16% in the basis quarter against CES's 27%.
Last four quarters
2026 Q1
$3.21B
Reported
2026 Q2
$3.44B
Reported
Defense & Systems equipment and servicesPropulsion & Additive Technologies (including Avio Aero)Aeroderivative (moved from CES effective 2026)
Sequential growth
+1.4%/qtr
decaying toward +1.0%
Lands 2026 DPT revenue where GE's low-double-digit growth guide puts it.
Defense & Propulsion Technologies
Latest: $4.33B (2031Q2E)
| Period | Value |
|---|---|
| 2026Q1 | $3.21B |
| 2026Q2 | $3.44B |
| 2026Q3E | $3.49B |
| 2026Q4E | $3.54B |
| 2027Q1E | $3.58B |
| 2027Q2E | $3.63B |
| 2027Q3E | $3.68B |
| 2027Q4E | $3.72B |
| 2028Q1E | $3.76B |
| 2028Q2E | $3.81B |
| 2028Q3E | $3.85B |
| 2028Q4E | $3.89B |
| 2029Q1E | $3.94B |
| 2029Q2E | $3.98B |
| 2029Q3E | $4.02B |
| 2029Q4E | $4.07B |
| 2030Q1E | $4.11B |
| 2030Q2E | $4.15B |
| 2030Q3E | $4.20B |
| 2030Q4E | $4.24B |
| 2031Q1E | $4.29B |
| 2031Q2E | $4.33B |
Assumptions & reasoning
- EBITDA margin is GE's guided full-year 2026 DPT operating profit of $1.65bn midpoint on model revenue of $13.7bn - about 12.1%, against a first-half actual of 12.8% - plus about 1.5% of revenue for depreciation and amortisation. The guided year is below the 13.8% second-quarter print because the fourth quarter has been the weak one: DPT margin was 8.9% in 2025 Q4 against 13.6% in 2025 Q3.
- Propulsion & Additive Technologies revenue rose 23% in the basis quarter on Avio Aero while Defense & Systems rose 12%, so the growth is in the smaller half of the segment and it is the half GE has just enlarged.
- Same two-quarter history limit as CES and for the same reason: the Aeroderivative transfer redefined this segment for 2026 and GE has never recast 2025 Q3 or Q4. The recast lifted 2025 Q2 DPT from $2,563m to $2,978m, a 16% difference, so splicing the old series in would be a basis error.