(Bloomberg) -- General Electric Co. jumped the most in more than two years after forecasting continued expansion of profit margins at its aviation division as an independent business.

The GE Aerospace business, which now primarily makes and services jet engines, should also see revenue growth at a mid- to high-single-digit rate and generate free cash flow “in line with net income” over the same period, Chief Executive Officer Larry Culp said Thursday. 

Wolfe Research analyst Nigel Coe, who has an “outperform” rating on the stock, called the aerospace targets “pretty impressive” in a research note. He also noted GE’s longer-term outlook for its energy units was above his base-case estimates.

GE said sales at the combined power-equipment and renewable energy units will grow at a mid-single-digit rate with high single-digit profit margins, despite intense near-term pressures at the wind turbine business. The company also reaffirmed its 2023 financial targets, which call for a more than doubling of adjusted earnings and up to $4.2 billion in free cash flow.

“We are operating from a stronger foundation and as a fundamentally simpler business that is creating significant value today and going forward,” Culp said in a statement.

GE rose as much as 9.2%, the biggest intraday gain since January 2021. The move sent the stock to its highest levels since 2018. The shares had soared 26% in the 12 months before Thursday, one of the larger gains among industrial companies and better than the slump in the S&P 500.

The gains have come as GE completed the spinoff of its health-care division in January, the first step in Culp’s plan to simplify the storied conglomerate by breaking it apart. The energy businesses will take the name GE Vernova following next year’s split.

Culp and other GE leaders detailed their expectations for how the air travel recovery will buoy its profitable services business as it ramps up production of new engines to meet steep production goals by aircraft manufacturers. They also said they expect continued defense spending through mid-decade that should lift its military aircraft engine and systems operations.

The company projected GE Aerospace revenue in 2025 would grow by as much as a mid-teens percentage range with profit margins expanding by roughly 20%. The long-term targets reflect the company’s latest expectations beyond 2023 following Culp’s multi-year push to turn around GE’s manufacturing divisions. 

Profit margins at GE Aerospace unit in particular have garnered attention as the company boosts jet engine deliveries to Boeing and Airbus. New turbines are loss-making early in their life before generating profits for several years through services.

Read more: Airlines Struggle to Find Engines as Travel Comes Roaring Back

The outlook underscores the opportunity ahead as GE tries to capitalize on rebounding air travel while it nears a breakup in early 2024 that will leave aerospace as its primary remaining business. 

In the meantime, the Boston-based company is working to rejuvenate its energy-related operations, which have faced acute pressure in the renewables market.

One key issue investors will be looking for Culp to address is the deep losses at the company’s wind turbine business, which is being restructured after it dragged the broader renewable energy division to a $2.2 billion operating loss last year. 

--With assistance from Richard Clough.

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