- Record stock rally: GE Aerospace (NYSE: GE) shares have surged in 2025, closing around $304 on Oct. 24, up about 82% year-to-date [1] [2]. The stock briefly spiked to a record ~$316 on Oct. 21 before easing back, reflecting bullish investor sentiment [3] [4].
- Q3 earnings beat expectations: In late October, GE reported blowout third-quarter results. Adjusted EPS was $1.66 (up 44% YoY) on $12.2 billion revenue, well above forecasts (consensus was roughly $1.45 EPS on $10.9B) [5] [6]. Management highlighted strong jet-engine deliveries and maintenance services.
- Outlook raised: Riding the momentum, GE Aerospace raised its 2025 profit outlook. New guidance is $6.00–6.20 per share (adjusted), up from $5.60–5.80 [7] [8]. CEO Larry Culp said airlines are “upbeat” about 2026 demand, as air travel stabilizes [9] [10].
- Major contracts won: GE’s defense and commercial wins are piling up. The company secured a U.S. Air Force multi-year deal (up to $5 billion) to supply F110 fighter-jet engines [11]. It also signed a seven-year service pact with AerCap, a major aircraft lessor, to manage new GE9X engines [12]. Engine orders from Korean Air (for ~100 new Boeing jets) and Cathay Pacific were also announced, bolstering the backlog.
- Government moves favor growth: In July, the U.S. Commerce Dept. lifted export restrictions on GE’s engines for China’s COMAC jets, allowing shipments of the LEAP-1C engines for the new C919 airliner [13] [14]. Meanwhile, GE tentatively resolved a labor strike – agreeing to a 5-year contract with the UAW union for its Ohio/Kentucky engine plants [15]. These developments remove hurdles to production.
- Strong analyst sentiment: Wall Street is overwhelmingly bullish. UBS recently raised its 12‑month price target to $366 and maintains a Buy rating [16]. Most other firms have lifted targets into the $300–360 range after the Q3 beat. The consensus sentiment is “moderate buy,” with average targets near the mid-$260s [17] [18].
Stock Price and Recent Performance
GE Aerospace’s stock has outpaced nearly every industrial peer in 2025. It is up roughly 80–85% year-to-date [19] [20], compared with S&P 500 returns below 10%. The market capitalization is now about $320 billion, making GE one of the largest industrials. Shares hit intraday record highs (~$316) right after the Q3 report on Oct. 21, before a modest pullback on profit-taking by Oct. 25 [21] [22]. Over the last week (Oct 20–24), GE’s stock was essentially flat, closing at $303.97 on Oct. 24 (up ~0.3% on the week) [23]. Trading volumes have been elevated, signaling high investor interest.
This year’s gains stem from soaring demand for aircraft engines and services. GE Aerospace has benefited from a jet-engine boom: global air travel has rebounded strongly (IATA reported passenger-miles +12% in 2024) [24], forcing airlines to keep older planes flying and spend on maintenance. That has translated into high-margin parts and service contracts for engine makers. For example, Boeing just won FAA approval to boost 737 MAX production to 42 jets/month [25], which means GE will need to supply more LEAP engines.
Q3 Earnings Beat and Outlook Upgrade
On Oct. 21, GE Aerospace released results for Q3 (period ended Sept. 30) that handily beat analysts’ forecasts. The company reported adjusted EPS $1.66, compared to about $1.45 expected [26] [27]. Revenue was about $12.2 billion, up 24% year-over-year. Free cash flow was also strong (on the order of $2.4B in the quarter [28]). CEO Larry Culp credited robust engine deliveries and maintenance (services) work for the results. (Revenues from aftermarkets are especially profitable for GE.) The quarter’s strong performance led GE to raise its full-year guidance: adjusted EPS is now expected in the range $6.00–6.20 for 2025 [29] [30], up from the prior $5.60–5.80. That is roughly 9% higher than even analysts had forecast before the release. Culp told Reuters that airlines he met with are “all upbeat about the outlook for… next year” [31] [32].
Analysts quickly digested the news. On the day of the report, GE’s stock jumped roughly 5% to its then-record high [33]. Within a day, at least five major firms raised 12‑month targets on GE: for example, Goldman Sachs boosted its target toward ~$305, and UBS went to $366 [34] [35]. Even more conservative houses raised targets into the low-$300s. (One notable bear, Bernstein/SocGen, still pegs fair value near ~$254). Overall, nearly all Wall Street analysts have “Buy” or “Outperform” ratings on GE Aerospace [36].
Major Contracts and Deals
Recent strategic wins have reinforced GE’s growth story. In defense, GE announced a $5 billion Air Force engine contract in March 2025 (see below), and later extended a separate maintenance contract. On Oct. 21, GE said the Air Force awarded it an IDIQ (multiple-delivery) contract worth up to $5B to supply F110-GE-129 fighter engines used on F-15 and F-16 jets [37]. (That deal supports U.S. allies like Saudi Arabia, Japan, etc.) These military contracts ensure a steady revenue stream for GE’s Defense & Space division.
Commercially, GE secured several key agreements: On Oct. 15, lessor AerCap announced a seven-year support deal with GE to manage its GE9X engine lease pool [38]. This covers shop visits, repairs and logistics when the new GE9X (for Boeing 777X) enters service. GE also won a big order from Korean Air for engines on 103 new Boeing jets, and additional GE9X orders from Cathay Pacific, boosting the company’s backlog. (Overall backlog of engines and services now exceeds ~$175 billion [39].) There are even research agreements: for example, GE is collaborating on hybrid-electric engine generators with startup Beta Technologies, reflecting a push into next-gen tech.
On the corporate side, the board made some notable moves. GE Aerospace announced that Wesley G. Bush, former Northrop Grumman CEO, will join the board in Dec 2025 [40] – a pick noted for his defense/aerospace experience. Meanwhile, longtime director and former GE Vernova CEO Steve Angel stepped down to become CEO of CSX [41]. These changes bolster GE’s defense credentials and signal the company’s laser focus on aerospace.
Government Actions and Industry Context
Several government decisions have also removed roadblocks. Most notably, the Biden administration in July 2025 lifted export restrictions that had barred GE from shipping certain engines to China. The Commerce Department told GE it may resume shipments of its LEAP-1C engines (used on China’s new C919 airliner) and CF34 engines for the C919/C929 regional jets [42] [43]. This followed high-level trade talks and is seen as a win for GE’s large China market potential. More broadly, U.S. defense budgets remain high – benefiting all military contractors. Global airline orders are also ramping up: Airbus and Boeing are increasing production, and airlines deferred deliveries during COVID, fueling a multi-year recovery in MRO (maintenance, repair, overhaul) activity, from which GE profited this quarter [44] [45].
On the flip side, risks remain. GE notes about $500 million in added 2025 costs due to U.S.-China tariffs [46]. Rising commodity and labor costs could squeeze margins next year. Interest rates are still higher than pre-pandemic, though recently the Fed signaled a pause. Some airlines warn of cooling travel demand if global uncertainties (e.g. geopolitical tensions) rise. Nonetheless, for now the demand environment looks robust, and Boeing’s recent approval to boost 737 MAX output is positive news for GE’s narrowbody engine business [47].
Analyst Opinions and Valuation
Experts broadly applaud GE Aerospace’s execution. Analysts note that GE is operating more like a high-growth tech company now, reflected in its premium multiples. The stock trades at roughly 36–43× forward EPS [48] [49], higher than most industrial peers. Yet many investors feel the growth justifies the valuation. As one commentator put it, GE’s streamlined focus on jet engines and long-term service contracts makes it a “winner” on Wall Street [50].
Investor presentations and media interviews highlight a consensus: airline executives are optimistic, and GE’s flight‑path backlog is enormous. The company’s average 2025 EPS estimate is now about $5.87 (per TS2) [51], implying ~27% growth after factoring in the raise. Analysts caution that much of this good news is “priced in,” but most maintain buy ratings expecting continued double-digit growth. Price targets cluster in the low-$300s to mid-$300s; UBS at $366 stands out as particularly bullish [52] [53]. In short, Street sentiment is very positive, though traders are watching the next guidance round (Q4/2026) as a potential catalyst.
Key Takeaway: GE Aerospace has become a Wall Street darling this year, driven by booming aircraft maintenance demand and a string of big contracts. Its recent financial beat-and-raise spurred a record stock run. While the valuation is lofty, most analysts believe GE’s strong backlog and improving fundamentals justify the optimism [54] [55]. Investors will be watching upcoming earnings and the broader economy for signs that the aerospace boom continues or cools off.
Sources: GE Aerospace Q3 financials and guidance (Reuters) [56] [57]; market data from MarketBeat and TS2 [58] [59]; company press releases and industry news [60] [61] [62]; expert analysis and analyst reports [63] [64].
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