We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
GE Gains From Strength in Defense & Propulsion Unit: Can It Sustain?
Read MoreHide Full Article
Key Takeaways
GE Defense & Propulsion revenues rose 19% in Q1, while orders surged 67% year over year.
GE secured major U.S. military engine contracts and expanded defense technology partnerships.
Rising defense budgets and geopolitical tensions continue to support segment growth prospects.
GE Aerospace (GE - Free Report) is benefiting from solid momentum in its Defense & Propulsion Technologies segment. Growing popularity for the company’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector is driving the segment’s performance.
Recently, the company entered into a deal with the U.S. Air Force to work on the preliminary design review for the GE426 engine. In the first quarter of 2026, GE clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet. Also, during the quarter, it announced a collaboration with Palantir Technologies Inc. (PLTR) to work on improving the readiness of its J85 engine that powers the U.S. Air Force’s T-38 training aircraft.
Apart from this, in 2025, GE Aerospace secured a $5 billion contract from the U.S. Air Force to supply F110 engines, parts and support services as part of a Foreign Military Sales (FMS) program. Also, the company received an Indefinite Delivery Indefinite Quantity (IDIQ) contract from the U.S. Army to supply F110 engines for F-15 and F-16 jets used by allied countries.
Driven by strong bookings, revenues from the Defense & Propulsion Technologies segment increased 19% year over year and orders grew 67% in first-quarter 2026. Rising U.S. & international defense budgets and heightened geopolitical tensions, along with positive airline & airframer dynamics, will augur well for the segment in the quarters ahead. For 2026, adjusted revenues from the defense and propulsion technologies unit are expected to increase in the mid-to-high single-digit range.
GE's Peers in the Defense Market
Among its major peers, RTX Corporation (RTX - Free Report) won several notable defense awards during the first quarter of 2026, which resulted in solid bookings of $14 billion and a record backlog of $271 billion. Among RTX’s most notable awards is a $627 million contract to supply Patriot air and missile defense systems to the Netherlands. RTX Corp. also secured a $6.6 billion contract for the production of F135 engines.
Its another peer, Howmet Aerospace Inc. (HWM - Free Report) , has also been witnessing positive momentum in the defense sector, cushioned by steady government support. Howmet has been witnessing robust orders for engine spares for the F-35 program and spares for legacy fighters like the F-15 and the F-16. In the first quarter, revenues from the defense aerospace market surged 10% year over year, constituting 16% of the company’s revenues.
GE's Price Performance, Valuation and Estimates
Shares of GE Aerospace have increased 22.2% in the past year compared with the industry’s growth of 2.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 36.05X, above the industry’s average of 31.62X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 and 2027 earnings has been on the rise over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
GE Gains From Strength in Defense & Propulsion Unit: Can It Sustain?
Key Takeaways
GE Aerospace (GE - Free Report) is benefiting from solid momentum in its Defense & Propulsion Technologies segment. Growing popularity for the company’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector is driving the segment’s performance.
Recently, the company entered into a deal with the U.S. Air Force to work on the preliminary design review for the GE426 engine. In the first quarter of 2026, GE clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet. Also, during the quarter, it announced a collaboration with Palantir Technologies Inc. (PLTR) to work on improving the readiness of its J85 engine that powers the U.S. Air Force’s T-38 training aircraft.
Apart from this, in 2025, GE Aerospace secured a $5 billion contract from the U.S. Air Force to supply F110 engines, parts and support services as part of a Foreign Military Sales (FMS) program. Also, the company received an Indefinite Delivery Indefinite Quantity (IDIQ) contract from the U.S. Army to supply F110 engines for F-15 and F-16 jets used by allied countries.
Driven by strong bookings, revenues from the Defense & Propulsion Technologies segment increased 19% year over year and orders grew 67% in first-quarter 2026. Rising U.S. & international defense budgets and heightened geopolitical tensions, along with positive airline & airframer dynamics, will augur well for the segment in the quarters ahead. For 2026, adjusted revenues from the defense and propulsion technologies unit are expected to increase in the mid-to-high single-digit range.
GE's Peers in the Defense Market
Among its major peers, RTX Corporation (RTX - Free Report) won several notable defense awards during the first quarter of 2026, which resulted in solid bookings of $14 billion and a record backlog of $271 billion. Among RTX’s most notable awards is a $627 million contract to supply Patriot air and missile defense systems to the Netherlands. RTX Corp. also secured a $6.6 billion contract for the production of F135 engines.
Its another peer, Howmet Aerospace Inc. (HWM - Free Report) , has also been witnessing positive momentum in the defense sector, cushioned by steady government support. Howmet has been witnessing robust orders for engine spares for the F-35 program and spares for legacy fighters like the F-15 and the F-16. In the first quarter, revenues from the defense aerospace market surged 10% year over year, constituting 16% of the company’s revenues.
GE's Price Performance, Valuation and Estimates
Shares of GE Aerospace have increased 22.2% in the past year compared with the industry’s growth of 2.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 36.05X, above the industry’s average of 31.62X. GE Aerospace carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for GE’s 2026 and 2027 earnings has been on the rise over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold). You can seethe complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.