Two GE Spinoffs Turn Industry Chokepoints Into Growth Engines for 2026

When General Electric split into three independent companies starting in 2021, it marked a dramatic turning point for a conglomerate that had become too sprawling to manage. The split accelerated after 2024, when GE Aerospace and GE Vernova began trading as separate entities in April. Since then, these two spinoffs have captured investor attention not merely through impressive returns—GE Aerospace surged 85% in 2025 while GE Vernova climbed 95%—but through their strategic positioning at critical industry chokepoints where supply shortages create unprecedented opportunity.

The contrast is striking. While GE HealthCare Technologies, spun off in late 2022, has climbed just 25% since separation, trailing the S&P 500’s 75% gain, the other two spinoffs have thrived by addressing fundamental supply chain crises that now act as choke symbols for entire industries.

Aircraft Supply Chain Becomes the Choke Symbol in Commercial Aviation

GE Aerospace dominates the jet and turboprop engine market at exactly the wrong time for airlines—and exactly the right time for investors. Commercial air travel grew over 10% from 2023 to 2024 and is forecast to expand 4.2% annually through 2030. Yet the industry faces a severe shortage of aircraft, components, and maintenance capacity.

This is where the supply constraint hits hardest. Consulting firm Bain & Company identified aircraft engine maintenance as the critical choke symbol limiting commercial aviation’s growth. Shop turnaround times for legacy engines have jumped 35%, while new engine repairs face a staggering 150% increase in wait times. These bottlenecks won’t peak until mid-2026 and are expected to persist through 2030.

GE Aerospace management is capitalizing on this environment by forecasting double-digit revenue growth annually from 2025 through 2028. Earnings per share are projected to climb from $6.10 in 2025 to $8.40 by 2028—a powerful signal of the company’s ability to command pricing power and market share amid structural scarcity.

Power Equipment Backlog Reflects a Different Kind of Chokepoint

GE Vernova faces an equally compelling narrative, though driven by electricity shortage rather than aircraft shortages. The company’s backlog of grid and electrification equipment surged by $6.5 billion to reach $26 billion—a figure that pales next to management’s ambitious target of growing total backlog from $135 billion to $200 billion by 2028.

What’s driving this demand is no secret: artificial intelligence data centers are consuming unprecedented amounts of power, yet grid infrastructure remains inadequate to meet their needs. GE Vernova’s power generation, transmission, orchestration, and storage equipment addresses this supply crisis directly. The company represents the rare opportunity to profit from what has become the industry’s defining choke symbol—the shortage of reliable electrical infrastructure.

To reward shareholders for capturing this advantage, GE Vernova doubled its quarterly dividend to 50 cents per share and expanded its stock buyback authorization from $6 billion to $10 billion. These moves signal management confidence that backlog growth will convert into sustained earnings expansion.

Can 2026 Sustain the Momentum?

The two spinoffs delivered exceptional 2025 returns in a year when the broader market gained just 17%. Both companies benefit from structural supply constraints that act as choke symbols protecting their pricing power and growth rates.

GE Aerospace operates within an aviation supply chain so strained that aircraft operators must wait months for engine repairs. GE Vernova positions itself at the center of the energy infrastructure race, where data center demand is outpacing grid capacity. Neither situation resolves quickly, and both create multi-year revenue visibility.

The question isn’t whether demand will persist—it will. The question is whether these two companies can scale production fast enough to capture the full potential of their respective markets. History suggests General Electric’s spinoffs, freed from conglomerate constraints, may be leaner and more focused than their corporate parent ever was. If they execute against their guidance, 2026 could prove as rewarding for shareholders as 2025 was.