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GE Benefits From Strong Order Growth: A Sign for More Upside?
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Key Takeaways
GE secured more than 650 commercial engine orders in Q1 2026 from major airlines.
GE won defense deals, including a $1.4B T408 engine contract for the U.S. Marine Corps.
GE expects 2026 adjusted revenue growth in the low-double-digit range across key units.
GE Aerospace (GE - Free Report) is witnessing strong order trends across its commercial and defense aerospace markets. Solid demand for its LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities, is driving the Commercial Engines & Services business.
Recently, GE entered into a 10-year maintenance and overhaul deal with Japan Airlines to offer support services for the latter’s Boeing 787 fleet’s avionics systems. In first-quarter 2026, the company received orders for more than 650 commercial engines, including commitments from American Airlines, United Airlines and Delta Airlines. It also entered into a long-term materials agreement to support Ryanair’s fleet of about 2,000 CFM56 and LEAP engines.
While the commercial aerospace market has remained the major driver for the company, the defense side of the industry has also been witnessing positive momentum. GE has been witnessing robust orders for its propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector.
Recently, GE secured a deal from Boeing Defence UK for the extension of support services for T700-GE-T701D engines. The contract will involve GE to provide logistics management, repair, maintenance and technical support services for these turboshaft engines that run the Apache AH-64E fleet of the British Army.
Apart from this, the company formed an agreement with the U.S. Air Force to work on the preliminary design review for its latest GE426 engine. Also, in first-quarter 2026, it clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet.
Driven by business strength, GE expects adjusted revenues to increase in the low-double-digit range for 2026. This includes mid-teens growth in the commercial engines and services unit and mid-to-high single-digit growth in the defense and propulsion technologies unit.
GE's Peers in the Defense Market
Howmet Aerospace Inc. (HWM - Free Report) has also been witnessing positive momentum in the commercial and defense sectors. Howmet has been witnessing robust orders for engine spares across both these sectors. In the first quarter, revenues from the commercial and defense aerospace markets surged 20% and 10% year over year, respectively.
Its another peer, RTX Corporation (RTX - Free Report) is benefiting from strength in the aerospace market, with growth in both aftermarket and OEM verticals. RTX reported 10% organic sales growth in the first quarter, driven by solid momentum in the Collins Aerospace and Pratt & Whitney segments. Rising aircraft utilization and demand for sustainable technologies are supporting RTX Corp.’s growth.
GE's Price Performance, Valuation and Estimates
Shares of GE Aerospace have increased 30.1% in the past year compared with the industry’s growth of 4.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 38.18X, above the industry’s average of 32.27X. 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 Benefits From Strong Order Growth: A Sign for More Upside?
Key Takeaways
GE Aerospace (GE - Free Report) is witnessing strong order trends across its commercial and defense aerospace markets. Solid demand for its LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities, is driving the Commercial Engines & Services business.
Recently, GE entered into a 10-year maintenance and overhaul deal with Japan Airlines to offer support services for the latter’s Boeing 787 fleet’s avionics systems. In first-quarter 2026, the company received orders for more than 650 commercial engines, including commitments from American Airlines, United Airlines and Delta Airlines. It also entered into a long-term materials agreement to support Ryanair’s fleet of about 2,000 CFM56 and LEAP engines.
While the commercial aerospace market has remained the major driver for the company, the defense side of the industry has also been witnessing positive momentum. GE has been witnessing robust orders for its propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector.
Recently, GE secured a deal from Boeing Defence UK for the extension of support services for T700-GE-T701D engines. The contract will involve GE to provide logistics management, repair, maintenance and technical support services for these turboshaft engines that run the Apache AH-64E fleet of the British Army.
Apart from this, the company formed an agreement with the U.S. Air Force to work on the preliminary design review for its latest GE426 engine. Also, in first-quarter 2026, it clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet.
Driven by business strength, GE expects adjusted revenues to increase in the low-double-digit range for 2026. This includes mid-teens growth in the commercial engines and services unit and mid-to-high single-digit growth in the defense and propulsion technologies unit.
GE's Peers in the Defense Market
Howmet Aerospace Inc. (HWM - Free Report) has also been witnessing positive momentum in the commercial and defense sectors. Howmet has been witnessing robust orders for engine spares across both these sectors. In the first quarter, revenues from the commercial and defense aerospace markets surged 20% and 10% year over year, respectively.
Its another peer, RTX Corporation (RTX - Free Report) is benefiting from strength in the aerospace market, with growth in both aftermarket and OEM verticals. RTX reported 10% organic sales growth in the first quarter, driven by solid momentum in the Collins Aerospace and Pratt & Whitney segments. Rising aircraft utilization and demand for sustainable technologies are supporting RTX Corp.’s growth.
GE's Price Performance, Valuation and Estimates
Shares of GE Aerospace have increased 30.1% in the past year compared with the industry’s growth of 4.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, GE is trading at a forward price-to-earnings ratio of 38.18X, above the industry’s average of 32.27X. 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 see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.