New York, Jan 11, 2026, 10:27 EST — Market closed.
- A Pentagon contract notice revealed a $1.42 billion modification for T408 engines related to the CH-53K helicopter
- Shares ended Friday up 2.3%; investors are now focused on GE Aerospace’s earnings webcast set for Jan. 22
GE Aerospace shares are set to draw attention once U.S. markets reopen, following the Pentagon’s announcement of a $1.42 billion contract modification for engines powering the U.S. Marine Corps’ CH-53K heavy-lift helicopter. 1
Timing is key here. The award lands as investors gear up for GE’s quarterly report later this month, where questions will focus on growth in its defense segment and how quickly engine deliveries and services are ramping up.
The contract is firm-fixed-price, so GE takes on more cost risk if expenses climb. It extends through 2032, offering visibility but also dragging out execution over many years. 1
GE Aerospace shares ended Friday at $321.59, gaining roughly 2.3% compared to the previous session.
The Navy’s contract notice states the award “definitizes” lots nine and 10, while extending scope to include lots 11 through 13. This covers 277 T408-GE-400 turboshaft engines along with associated program support work. 1
GE Aerospace announced the deal includes new production and spare engines, plus sustainment services, with final assembly set for Lynn, Massachusetts. Scott Snyder, the program’s heavy-lift engines director, described the contract as proof of the T408’s power, durability, and efficiency that the Marine Corps relies on. 2
Lockheed Martin’s Sikorsky unit builds the CH-53K, the Marine Corps’ latest heavy-lift helicopter. GE confirmed the aircraft runs on three T408 engines and hit initial operating capability back in April 2022. 2
The award comes amid a busy aerospace-and-defense sector, with investors weighing military contracts against commercial engine output and aftermarket sales. GE faces competition from RTX in propulsion and services, while also providing engines and support linked to helicopter and aircraft programs influenced by U.S. budget timelines.
A major risk lies in the fact that the headline contract value might not convert smoothly into near-term revenue. Delays in the CH-53K program’s schedule, supply-chain bottlenecks, or cost pressures from fixed-price terms could all diminish the upside despite having a signed deal in place.
As the week kicks off, traders will keep an eye on updates about defense spending and engine supply. GE’s quarterly earnings remain the next major event to watch.
GE Aerospace will release its fourth-quarter 2025 earnings on Jan. 22, kicking off a webcast at 7:30 a.m. EST, ahead of the U.S. market open. 3
