New York, Jan 9, 2026, 12:45 EST — Regular session
GE Aerospace shares rose about 2.1% to $321.13 on Friday after a U.S. Navy contract notice showed the engine maker won a $1.42 billion modification tied to CH-53K heavy-lift helicopter production. The award covers 277 T408-GE-400 turboshaft engines and runs through September 2032; it is a firm-fixed-price deal, meaning the contractor is paid a set amount and must manage any cost overruns. (Defense Daily)
Why it matters now: investors have leaned into aerospace suppliers on the view that a backlog of engines and maintenance work can outlast bumps in plane deliveries. A multi-year military award adds another pocket of demand that is less tied to airline schedules.
The timing also puts a fresh defense headline in front of GE’s next earnings update later this month, when the market will be listening for guidance on deliveries, services and cash flow into 2026.
GE said the contract covers Lots 9-13 of its T408 engines, which power Sikorsky’s CH-53K King Stallion, and includes new production engines, spares and sustainment services, with final assembly in Lynn, Massachusetts. “This latest contract is a testament to the T408’s ability to deliver the power, durability and efficiency the Marine Corps depends on,” Scott Snyder, the company’s heavy lift engines program director, said. (GE Aerospace)
Other aerospace and defense stocks were higher in midday trade, including Lockheed Martin, which owns Sikorsky, up about 4.4%, Boeing up about 3.1%, and RTX up about 0.8%.
GE Aerospace is scheduled to host its fourth-quarter 2025 earnings webcast on Jan. 22. Investors will be watching for 2026 guidance, any update on engine delivery assumptions, and commentary on parts availability and service margins. (GE Aerospace)
In October, CEO Larry Culp told Reuters the company expected to be “busy” as it raised its 2025 adjusted profit forecast to $6.00 to $6.20 per share, citing stronger parts and services demand. (Reuters)
But fixed-price defense work can cut both ways if input costs rise or production snags eat into margins, and military procurement schedules can shift with budget priorities. Execution risk matters more when contracts stretch for years.
The next catalyst is Jan. 22, when GE will have to show how the defense work fits alongside its larger commercial engine services business — and whether it can keep output rising without giving back pricing.
