General Electric Company, doing business as GE Aerospace, designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and aircraft systems. It operates through two segments: Commercial Engines & Services, and Defense & Propulsion Technologies. The Commercial Engines & Services segment designs, develops, and manufactures jet engines, provides maintenance, repair, and overhaul (MRO) services, and sells spare parts for commercial airframes, business aviation, and aeroderivative applications. The Defense & Propulsion Technologies segment designs, develops, manufactures, and services jet engines, avionics, and power systems for governments, militaries, and commercial airframers, and also provides MRO services and sells spare parts. It offers aircraft components and systems, including small turboprop engines, aeroengine mechanical transmissions, turbines, combustors and controls, additive manufacturing, propeller systems, ignition systems, sensors, and engine accessories for fixed-wing and rotorcraft applications under the Avio Aero, Unison, Dowty Propellers, and Colibrium Additive brands. The company operates in the United States, Europe, Asia, the Americas, the Middle East, and Africa. General Electric Company was incorporated in 1892 and is based in Evendale, Ohio.
GE's profit grows on record $170B services backlog and buybacks
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Record $170B services backlog drives recurring revenue GE's commercial services backlog tops $170 billion, with services revenue up 39% and engine orders jumping 67% to $6.2 billion. This large backlog locks in years of high-margin maintenance revenue as the installed engine base grows, giving investors confidence in steady future cash flow.
The services backlog is the core growth engine behind GE's earnings and stock performance.
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30.6% dividend hike and $2.2B buyback return cash GE raised its quarterly dividend 30.6% to 36 cents and repurchased $2.2 billion of stock under a new $20 billion authorization. With $11 billion in cash and $8–8.4 billion free cash flow expected, these shareholder returns signal management's confidence and support the stock price.
Capital returns directly boost shareholder value and reflect strong cash generation.
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Profit up 18% but margin squeezed by rising costs Operating profit rose 18% to $2.5 billion, yet margin fell 200 basis points to 21.8% as costs jumped. Management also cut its global flight departures outlook. While full-year profit guidance implies 10.4% growth, the margin pressure and cautious demand view are a real counterweight.
This is the main negative offset to GE's otherwise strong growth story.
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Technology bets in silicon carbide and space deepen moat GE signed an MoU with Wolfspeed on high-voltage silicon carbide power modules and supported Starfighters Space's design review. These moves tie aerospace, power electronics, and space tech closer, positioning GE for future defense and energy platforms, though financial impact will take time.
Long-term technology leadership supports future growth and competitive positioning.
Latest
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GE raises cash and profit outlook, buys castings supplier to secure engine supply
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GE lifts 2026 free cash flow forecast to $8.9–$9.2B GE raised its 2026 free cash flow forecast to $8.9–$9.2 billion from $8.0–$8.4 billion, and it is returning lots of cash to shareholders through buybacks and a higher dividend. More cash and buybacks make each share worth more, which supports the stock.
This is a new, concrete financial upgrade that directly boosts investor confidence in GE's cash generation.
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GE to buy castings maker CPP for $11.75B GE agreed to buy Consolidated Precision Products, a key supplier of precision castings for jet engines, for $11.75 billion. The deal gives GE more control over a critical supply chain and is expected to add to earnings in the first year, helping the stock.
This is the period's biggest strategic move, directly addressing supply bottlenecks and expanding defense exposure.
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GE9X mid-seal fix progresses, 777X on track GE redesigned the GE9X engine's mid-seal and started shipping engines with the new part. Management says this should not delay the Boeing 777X's entry into service, and FAA approval is expected soon. Removing a key risk supports the stock.
This resolves a major technical and regulatory overhang that could have delayed a key engine program.
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GEK800 missile engine ignites successfully GE and Kratos successfully ignited the GEK800 turbofan for cruise missiles, a key development milestone. It opens a new defense market, though revenue is years away, so the boost is mostly sentiment.
This is a new technology milestone that broadens GE's defense portfolio and supports future growth.
Q3 2026
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GE Aerospace hits record orders, raises guidance, buys supplier
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Record orders and $170B+ services backlog GE booked record orders and grew its services backlog above $170 billion, including a major IndiGo LEAP order at Farnborough. This locks in years of high-margin maintenance revenue as the installed engine base expands.
This is the core demand driver that lifted the stock and supports future cash flow.
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Raised 2026 guidance and $2.9B Navy contract GE raised its 2026 services growth forecast to $5 billion and free cash flow outlook to $8.9–9.2 billion. Defense demand accelerated on rising global budgets, with a record $210 billion backlog and a $2.9 billion Navy contract.
Higher guidance and defense wins directly boost investor confidence and earnings expectations.
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$11.75B acquisition of castings supplier CPP GE agreed to buy castings supplier CPP for $11.75 billion to control a critical supply chain. This vertical integration aims to ease supply-chain constraints and secure components for engine production.
This strategic move addresses supply bottlenecks and could improve margins long-term.
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Margin decline and rich valuation A 160-basis-point decline in commercial engine margins triggered a ~5% stock drop. Valuation remains rich at 38–46x earnings, leaving little room for error, while supply-chain constraints and a potential U.S. Bombardier jet ban weigh on the outlook.
This is the main counterweight that pressured the stock despite strong orders.
News & notes movingGE
United States
Aerospace & Aviation▼2impact 4
FAA Weighs Safety Review of Boeing 737 Max Software as Max 10 Certification Delayed
The Federal Aviation Administration could convene a safety review panel as soon as Friday to examine a software problem affecting Boeing's 737 Max family, potentially leading to additional regulatory action, Bloomberg News reported, citing people familiar with the matter. The glitch can increase pilot workload during certain aborted landing procedures by shifting the autopilot to a less automated mode for pitch control. The FAA's Corrective Action Review Board is expected to determine whether the problem constitutes a flight-safety issue and whether measures such as an airworthiness directive are necessary. Boeing notified operators about the issue in August and is working on a software update, while GE Aerospace, which supplies the affected software, said it is assisting Boeing and the FAA with the review. The smaller Max 7 was certified in August with the same software, although Southwest Airlines, United Airlines and Alaska Air Group have said their fleets don't use the faulty version; United also said it is not accepting new aircraft equipped with the affected software, while Southwest said its recent and upcoming Max 8 deliveries won't contain it. The FAA has said certification of the 737 Max 10 will remain on hold until the review is completed, adding another potential obstacle for a model already years behind schedule, and Boeing has more than 1,500 orders for the Max 10, making its entry into service important to the company's production plans and future cash generation.
GE Aerospace Earns Zacks Rank #2 as Earnings Estimates Rise
GE Aerospace holds a Zacks Rank #2 (Buy), with consensus earnings estimates for the current quarter, fiscal year, and next fiscal year all revised higher over the past 30 days. The company is expected to post earnings of $2.01 per share for the current quarter, a year-over-year change of +21.1%, while the Zacks Consensus Estimate has moved +0.7% over the last 30 days. For the current fiscal year, the consensus estimate of $7.91 points to a +24.2% change from the prior year and has risen +0.6% over the past month, and for the next fiscal year the $9.04 estimate indicates a +14.3% change and has increased +0.5%. Revenue forecasts call for $12.66 billion in the current quarter, up +12% year over year, with current and next fiscal year estimates of $50.56 billion and $55.85 billion, indicating +19.5% and +10.5% changes respectively. In its last reported quarter, GE posted revenues of $12.63 billion, up +24.5% year over year and a +6.52% surprise versus the Zacks Consensus Estimate of $11.86 billion, with EPS of $2.02 versus $1.66 a year ago and an EPS surprise of +8.6%.
Citi Adds Howmet Aerospace to 90-Day Upside Catalyst Watch, Keeps $329 Target
Citi added Howmet Aerospace to a positive 90-day Catalyst Watch on Wednesday, maintaining its Buy rating and $329 price target on the aerospace supplier. The call implies 42.5% expected share-price appreciation, or a 42.7% total return including dividends, from Howmet's Sept. 29 closing price of $230.94. Lead analyst John Godyn said recent concerns weighing on the shares appear overdone and described Howmet as one of Citi's top aerospace and defense compounders. Howmet shares have fallen about 9% since Citi initiated a separate positive 30-day Catalyst Watch on Aug. 31, which has now expired, with Citi attributing the weakness to GE Aerospace's acquisition of Consolidated Precision Products, potential risks to Boeing's 737 production and delivery schedule, and rising geopolitical and fuel-related pressures on aerospace and defense stocks. Citi forecasts third-quarter EPS of $1.38 and fourth-quarter EPS of $1.44, bringing estimated 2026 EPS to $5.37, and its 2027 EPS estimate of $6.76 is above the $6.48 consensus cited in the report.
GE Aerospace and Kratos Ignite GEK800 Turbofan Cruise Missile Engine
GE Aerospace and Kratos Defense successfully ignited the GEK800 turbofan cruise missile engine, a fresh data point for investors watching General Electric's defense story. The news lands against a mixed stretch for the share price: a 30 day share price return of 7.21% and a 90 day share price return of 15.22%, alongside a 1 year total shareholder return of 6.08% and a very large 5 year total shareholder return. General Electric now trades only slightly below some intrinsic value estimates while sitting well under the average analyst target, and on the narrative view its fair value sits at $307 against a last close of $317.89, a 3.5% overvalued reading. On the P/E lens the shares trade on 36.8x earnings, above both the 35.6x industry average and the same 35.6x peer group level, and above a fair ratio estimate of 34.7x. The company's reliance on Boeing's production tempo and exposure to tight aerospace supply chains remain the key risks to the wide moat narrative.
GE · Technology · Positive GE Aerospace and Kratos successfully ignited the GEK800 turbofan cruise missile engine, a technology milestone for its defense story.
KTOS · Technology · Positive Kratos Defense co-developed and successfully ignited the GEK800 turbofan cruise missile engine.
GE Aerospace and Kratos Complete First Ignition of GEK800 Engine
Kratos Defense & Security Solutions and GE Aerospace announced the successful first ignition of the GEK800 Serial Number 1 turbofan engine on September 21, a milestone in a program the U.S. military has designated the F143-ZZ-100. The test, conducted at Kratos' X-58 facility, achieved a 100% success rate for the development phase and keeps the affordable, high-performance propulsion system on schedule for advanced cruise missiles and uncrewed aerial systems. For Kratos, the milestone supports a Government Solutions segment that posted $379.7 million in Q2 2026 revenue, up 22.0% organically, with Turbine Technologies up 43.3% organically, a consolidated book-to-bill ratio of 1.1x and $2.084 billion in backlog, as the company ramps full-year 2026 revenue guidance to $1.750–$1.810 billion. GE Aerospace's Defense & Propulsion Technologies segment reported $3.4 billion in Q2 2026 revenue, up 16%, and raised full-year DPT operating profit expectations to $1.6–$1.7 billion. Kratos also faces cash conversion pressure, with $11.0 million in Q2 2026 operating cash outflow and $18.9 million in negative free cash flow, while GE's DPT margins face ongoing pressure from investments and inflation.
KTOS · Technology · Positive Kratos achieved first ignition of the GEK800 engine at its X-58 facility, advancing the affordable propulsion program for cruise missiles and UAVs.
KTOS · Capital · Negative Kratos faces cash conversion pressure with $11.0 million Q2 2026 operating cash outflow and $18.9 million negative free cash flow.
GE · Technology · Positive GE Aerospace and Kratos completed the first ignition of the GEK800 turbofan engine, a milestone for the F143-ZZ-100 military propulsion program.
GE Aerospace Ships Redesigned GE9X Engines to Boeing, Expects FAA Certification Within Months
GE Aerospace has begun shipping GE9X engines with a redesigned mid-seal to Boeing and expects FAA certification of the modified part within the next few months, CFO Rahul Ghai said at a Morgan Stanley conference, expressing confidence the durability issue will not delay the Boeing 777X's planned 2027 entry into service. Testing showed the original seal, which connects the engine's front and rear sections, lacked the durability GE expected; the company identified the root cause, completed a redesign, validated the new component internally, and incorporated it into engines now moving through production. Boeing can continue using the original seal for current certification work, including approvals required before ETOPS testing, while GE pursues separate FAA approval for the redesigned component in production aircraft, allowing regulatory work to advance in parallel. The GE9X exclusively powers the 777X, and GE previously reported an order book exceeding 950 engines, with Emirates alone having since increased its total order to more than 540 units. Boeing CEO Kelly Ortberg has separately warned that regulatory work on the 777X could extend into 2027 because of engine-certification issues, and GE has not disclosed the expense associated with testing the new seal, modifying engines or addressing units that already contain the original component.
GE · Technology · Positive GE Aerospace completed and validated a redesigned GE9X mid-seal, resolving the durability issue and expecting FAA certification within months
BA · Supply · Positive GE9X redesigned mid-seal engines shipping to Boeing and FAA certification expected within months, keeping 777X's 2027 entry into service on track
Emirates Airline · Demand · Positive Emirates increased its GE9X-powered 777X order to more than 540 units, supporting the engine's order book
GE Aerospace and Kratos Complete GEK800 Cruise Missile Engine Ignition Test
GE Aerospace, a unit of General Electric, and Kratos completed a successful ignition test of the new GEK800 cruise missile engine. The milestone advances propulsion systems designed for long range cruise missiles in support of Department of War programs, and highlights fresh engineering and manufacturing capabilities within GE Aerospace focused on high performance, cost focused defense propulsion. The GEK800 ignition ties directly into General Electric's Defense & Propulsion Technologies backlog above US$30b and supports the catalyst around acceleration of next generation engine programs such as adaptive cycle engines and CCA propulsion. For the milestone to matter to shareholders, the next stretch of the GEK800 program needs to hold schedule and convert into volume work, with formal program decisions from the Department of War, a shift from single engine trials to a broader qualification campaign, and signs that GE can fold any eventual production into its FLIGHT DECK supply chain model without adding margin pressure to the wider defense portfolio.
Defense & Geopolitical Fragmentation › Defense Primes — United States ▲Supply
GE · Technology · Positive GE Aerospace and Kratos completed a successful ignition test of the new GEK800 cruise missile engine, advancing its defense propulsion program.
KTOS · Technology · Positive Kratos completed a successful ignition test of the GEK800 cruise missile engine jointly with GE Aerospace.
GE Aerospace Rises 2.26% as Analysts Eye October 20 Earnings Report
GE Aerospace shares closed up 2.26% at $327.02, outpacing the S&P 500's 0.51% gain, while the Dow added 0.93% and the Nasdaq gained 0.48%. The company is scheduled to report earnings on October 20, 2026, with analysts expecting earnings of $2.01 per share, a year-over-year increase of 21.08%, and revenue of $12.66 billion, up 11.96%. For the full year, the Zacks Consensus Estimate projects earnings of $7.91 per share and revenue of $50.56 billion, representing growth of 24.18% and 19.46%, respectively. GE Aerospace currently carries a Zacks Rank #3 (Hold), and its consensus EPS projection has moved 0.62% higher over the past 30 days. The stock trades at a forward P/E of 40.42, a premium to the industry average of 23.06, with a PEG ratio of 2.33 versus the Aerospace-Defense industry average of 1.69.
GE · Capital · Neutral Article centers on GE Aerospace's upcoming Oct 20 earnings report, with analyst EPS/revenue estimates and valuation metrics, but no company-specific development beyond expectations.
GE Aerospace to Invest $225 Million in New York Research Center Upgrade
GE Aerospace plans to spend $225 million upgrading its research center in Niskayuna, New York, sending shares up about 0.9% to $322.71 at 11.59am ET on Friday. Of the total, about $150 million will go toward the site itself, with roughly $75 million for research equipment and technology. GE says the work will support projects spanning AI, robotics, advanced materials and aircraft propulsion, while adding 75 jobs over five years. State and local incentives total $13.7 million, and American Machinist reports the upgrade also supports federally backed aerospace research.
GE Aerospace to Buy Consolidated Precision Products for $11.75 Billion
GE Aerospace has agreed to acquire Consolidated Precision Products, one of the world's largest makers of precision sand castings, for $11.75 billion in its biggest deal since becoming a standalone company in 2024. The company plans to use $7 billion of cash and fund the remainder with new debt, with the transaction expected to close in the second half of 2027. CPP supplies components for GE's LEAP and GEnx commercial engines, and about 70% of its revenue comes from commercial and defense engines; it is expected to generate roughly $2 billion in revenue in 2027. The deal values CPP at about 26 times its expected 2027 core profit before expected synergies, or roughly 18 times including them. CEO Larry Culp said investment in casting capacity is needed to support simultaneous demand across commercial engines, aftermarket and defense, and GE expects its demand for airfoils to rise more than 30% by 2030 compared with 2026 levels. Vertical Research analyst Robert Stallard told Reuters the deal makes strategic sense given tight engine casting supply, but said it remains to be seen how it will affect CPP's non-GE customers such as RTX's Pratt & Whitney; GE shares were little changed after the announcement while casting rival Howmet Aerospace fell about 8%.
GE · Capital · Positive GE Aerospace agrees to acquire Consolidated Precision Products for $11.75B, its biggest deal since becoming standalone, to secure engine casting capacity.
Consolidated Precision Products · Capital · Positive Consolidated Precision Products is being acquired by GE Aerospace for $11.75 billion.
HWM · Competition · Negative Casting rival Howmet Aerospace fell about 8% as GE vertically integrates casting supply via the CPP acquisition.
RTX · Competition · Neutral Article notes it remains to be seen how the deal affects CPP's non-GE customers such as RTX's Pratt & Whitney.
GE Aerospace raised its full-year 2026 operating profit guidance to a range of $10.55-$10.75 billion, up from a previous forecast of $9.85-$10.25 billion, even as second-quarter operating margin fell 130 basis points to 21.7%. The company reported second-quarter 2026 operating profit of $2.75 billion, an increase of 18% year over year, but cost of sales surged 26.7% to $8.7 billion, selling, general and administrative expenses rose 10.9% to $1.1 billion, and research and development expenses climbed 28.1% to $460 million, with the margin decline attributed to growth investments and inflation. The updated guidance implies year-over-year growth of 17.6% at the midpoint, and GE expects 2026 top-line and margin performance to benefit from higher LEAP engine deliveries, with high-teens growth in LEAP deliveries expected this year, along with strong aftermarket services demand and operational execution. Among peers, Textron's second-quarter cost of sales rose 4.2% to $3.09 billion and its gross profit margin declined 100 basis points to 17.8% on reduced margin in the Bell segment, while RTX Corporation's total costs and expenses increased 12.8% to $22 billion yet its adjusted operating profit margin expanded 150 basis points to 11.4%.
GE · Capital · Positive GE Aerospace raised its full-year 2026 operating profit guidance to $10.55-$10.75 billion and posted 18% YoY Q2 operating profit growth.
RTX · Capital · Positive RTX's total costs rose 12.8% to $22 billion but its adjusted operating profit margin expanded 150 basis points to 11.4%.
TXT · Capital · Negative Textron's Q2 cost of sales rose 4.2% and gross profit margin declined 100 basis points to 17.8% on reduced Bell segment margin.
GE Aerospace names Wes Bush independent lead director
GE Aerospace named former Northrop Grumman Chairman and CEO Wes Bush as independent lead director of its board, succeeding Tom Horton in the role. The appointment took effect Sept. 21, the company announced Tuesday, and Horton, who had served as independent lead director since 2018, will remain on GE Aerospace's board. Bush joined the GE Aerospace board as an independent director in 2025, bringing extensive aerospace and defense experience from his former leadership of Northrop Grumman; he also serves on the boards of Dow and General Motors. Horton became GE's independent lead director in 2018, a period that encompassed the restructuring and eventual breakup of the former conglomerate, and he previously served as chairman and CEO of American Airlines and currently is a senior adviser at Global Infrastructure Partners, while also serving on the boards of Chevron and Walmart. The change in lead director does not affect H. Lawrence Culp Jr.'s position as chairman and CEO of GE Aerospace, which became a standalone company in 2024 after GE completed the separation of its energy businesses into GE Vernova.
GE · · Neutral GE Aerospace names Wes Bush as independent lead director, a routine board governance change with no clear financial or operational impact.
GE Aerospace Declares $0.47 Quarterly Dividend, Yield 0.59%
GE Aerospace declared a quarterly dividend of $0.47 per share, in line with its previous payout. The dividend carries a forward yield of 0.59%. It is payable Oct. 26 to shareholders of record as of Oct. 5, with an ex-dividend date of Oct. 5.
GE Aerospace Ships Redesigned GE9X Mid-Seal as FAA Approval Looms
GE Aerospace has begun shipping GE9X engines fitted with a redesigned mid-seal, moving a key hardware fix into production while the Boeing 777X certification effort continues. The change follows internal testing aimed at a durability issue identified earlier this year, according to Chief Financial Officer Rahul Ghai. The existing seal remains usable for current aircraft-certification work, giving GE room to keep the broader program moving, but the redesigned production seal still needs separate Federal Aviation Administration approval, which management expects to conclude within several months. GE says the issue should not delay the 777X's entry into service. Shares slipped roughly 0.3% to $312.46 Friday morning, a price 15.21% above the stock's $271.21 GF Value.
GE · Technology · Positive GE Aerospace began shipping GE9X engines with a redesigned mid-seal, moving a durability fix into production.
GE · Regulation · Neutral The redesigned production seal still requires separate FAA approval, expected within several months.
BA · Regulation · Neutral Article notes the 777X certification effort continues and GE says the seal issue should not delay entry into service, but no new Boeing-specific development is reported.
GE Aerospace to Acquire Consolidated Precision Products for About $11.7 Billion
GE Aerospace announced it is acquiring private precision-manufacturing company Consolidated Precision Products for about $11.7 billion, a deal that values the target at roughly 26 times EBITDA. Consolidated Precision Products is one of four major component manufacturers in the industry, building jet turbine blades and airfoils, and has worked with GE for more than 15 years as perhaps its third-largest supplier in that group. Management claims the deal will be accretive to earnings per share in year one, funded with about $7 billion in cash from the balance sheet plus new debt, though the transaction is expected to lever up the balance sheet. The move is a vertical-integration play that should give GE priority on procurement and faster ramp-up on new engine designs, and it sent shares of rival supplier Howmet down 7% to 8% on the news. The podcast also discussed Boston Scientific's disclosure that a cyberattack will prevent it from meeting quarterly and annual sales targets, and a mailbag question on reverse stock splits.
GE Vernova Settles Vineyard Wind Dispute as GE Aerospace Buys Consolidated Precision Products
General Electric's GE Vernova unit has resolved its legal dispute with Vineyard Wind, while GE Aerospace has addressed a GE9X engine durability issue and announced an US$11.75 billion acquisition of Consolidated Precision Products to bolster precision-cast engine component supplies. The Vineyard Wind settlement trims legal overhang at GE Vernova, and the planned US$11.75 billion CPP acquisition directly targets one of GE Aerospace's largest current vulnerabilities, precision component availability, by bringing more casting capacity in house to support engine production schedules and protect margins around key catalysts such as the GE9X and GEnx ramp. General Electric's narrative projects $63.2 billion revenue and $11.7 billion earnings by 2029, requiring 7.7% yearly revenue growth and about a $2.7 billion earnings increase from $9.0 billion today, and the narrative yields a $404.90 fair value, a 29% upside to its current price. Some of the lowest ranked analysts assume revenue of about US$60.8 billion and earnings of roughly US$10.8 billion by 2029 while applying a lower price target. Investors still need to weigh the unresolved execution risk around GE9X and broader supply chain pressures.
Energy Transition & Power Demand › Wind ▲Regulation
Energy Transition & Power Demand › Grid, Transmission & Power Equipment Supply
GE · Capital · Positive GE Aerospace announced an $11.75 billion acquisition of Consolidated Precision Products to bring precision-cast engine component capacity in house.
GE · Technology · Negative GE Aerospace addressed a GE9X engine durability issue, with unresolved execution risk around the GE9X ramp.
Consolidated Precision Products · Capital · Positive Consolidated Precision Products is being acquired by GE Aerospace for $11.75 billion.
GEV · Regulation · Positive GE Vernova resolved its legal dispute with Vineyard Wind, trimming legal overhang.
Vineyard Wind · Regulation · Neutral Vineyard Wind settled its legal dispute with GE Vernova; terms and financial impact are not specified.
Honeywell CEO Calls GE's $11.75 Billion CPP Deal Positive for Aerospace
Honeywell Aerospace CEO Jim Currier called GE Aerospace's planned $11.75 billion acquisition of Consolidated Precision Products positive for the industry overall, while noting Honeywell does not directly compete with CPP because the parts it sources differ from GE's. CPP supplies roughly a quarter of GE's casting requirements, and GE expects the business to generate about $2 billion of revenue in 2027. Currier said Honeywell could bring additional outsourced capabilities back in-house through smaller, complementary acquisitions, after the company cut its 2026 organic sales-growth outlook to 4%-5% from 7%-9% and quadrupled spending on multi-sourcing and in-sourcing initiatives this year. Honeywell deployed skilled workers into supplier factories, which Currier said helped increase production 30% year over year during the preceding 30-45 days. In the second quarter, sales rose 5% to $4.52 billion, but adjusted EPS fell 32% to $1.87, with supply constraints and an unfavorable mix weighing on profitability.
Aerospace & Aviation › Avionics & Aircraft Systems Supply
GE · Capital · Positive GE Aerospace's planned $11.75 billion acquisition of Consolidated Precision Products secures roughly a quarter of its casting requirements and is expected to generate about $2 billion of revenue in 2027.
Consolidated Precision Products · Capital · Positive Consolidated Precision Products is being acquired by GE Aerospace for $11.75 billion and is expected to generate about $2 billion of revenue in 2027.
HON · Capital · Negative Honeywell cut its 2026 organic sales-growth outlook to 4%-5% from 7%-9% and Q2 adjusted EPS fell 32% to $1.87 on supply constraints and unfavorable mix.
HONA · Supply · Neutral Honeywell Aerospace CEO commented on the GE-CPP deal and said Honeywell may bring outsourced capabilities in-house via smaller acquisitions after quadrupling multi-sourcing/in-sourcing spending.
Boeing CEO Says No 200-Plane China Order, Flags 737 Wing Bottleneck
Boeing CEO Kelly Ortberg tempered expectations for a large China aircraft order, clarifying that the company did not receive a roughly 200-plane order earlier this year and that Chinese officials instead indicated plans to move forward with purchases that he expects to emerge incrementally and be announced by individual airlines. Speaking at Morgan Stanley's 14th Annual Laguna Conference, Ortberg said Boeing has reached a 737 production rate of 47 aircraft per month but has yet to stabilize at that level, with wing production in Renton remaining the primary constraint even as the broader supply chain, including engines, is in good shape. Boeing expects 737 MAX 10 certification very soon, with flight testing complete and only documentation and regulatory review remaining; the MAX 10 represents roughly 30% of Boeing's 737 backlog. The 777X faces another hurdle, as Boeing awaits completion of GE Aerospace's engine mid-seal certification plan before it can begin ETOPS testing, with some testing possibly spilling into next year, though the company continues to target 2027 deliveries. Engine deliveries are also slowing Boeing's effort to raise 787 production from eight to 10 aircraft per month, with the required engine delivery performance now expected closer to year-end, and a potential SPEEA strike could effectively halt the 777X certification program and disrupt 737 production before the current contract expires Oct. 6. CFO Jay Malave reaffirmed Boeing's 2026 free cash flow forecast of $1 billion to $3 billion, with about $2 billion as the framework, but said slower-than-expected 737 and 787 production ramps through year-end make results above the midpoint less likely than previously expected.
Aerospace & Aviation › Avionics & Aircraft Systems ▼Supply
BA · Demand · Negative CEO says Boeing did not receive the roughly 200-plane China order, with purchases expected only incrementally via individual airlines.
BA · Supply · Negative Boeing flags 737 wing production in Renton as the primary constraint, slowing the production ramp and making results above the FCF midpoint less likely.
GE · Supply · Negative Boeing awaits GE Aerospace's engine mid-seal certification plan before 777X ETOPS testing, and slowing GE engine deliveries hamper 787 production ramp.
GE Aerospace Says GE9X Durability Fix Won't Delay Boeing 777X
GE Aerospace said a durability issue found in the GE9X engine is not expected to affect the planned entry into service of Boeing's 777X aircraft next year, according to comments made Thursday at a Morgan Stanley conference. The problem centers on the engine's mid-seal, a component linking the front and rear sections of the GE9X, where testing showed the original design did not meet durability expectations. Engines fitted with a redesigned seal began shipping to Boeing during the third quarter, and Federal Aviation Administration certification is anticipated within the next few months. GE Aerospace first disclosed the potential problem in February and later said it had identified the root cause and completed a corrective design without changing the overall timeline for the GE9X program. Separately, the company said its recently agreed $11.75 billion acquisition of Consolidated Precision Products is intended to strengthen supplies of precision-cast engine components and should not be viewed as a broader shift toward vertical integration across its aerospace operations.
GE · Technology · Positive GE Aerospace resolved the GE9X mid-seal durability issue with a redesigned seal now shipping, keeping the engine program on schedule.
GE · Capital · Positive The $11.75 billion acquisition of Consolidated Precision Products is aimed at strengthening precision-cast engine component supplies.
BA · Supply · Positive GE9X durability fix won't delay the 777X's planned entry into service next year, removing a supply/timeline risk for Boeing's aircraft.
Consolidated Precision Products · Capital · Neutral Consolidated Precision Products is the target of GE Aerospace's $11.75 billion acquisition, mentioned only as the acquired supplier of precision-cast components.
GE Aerospace to Buy Consolidated Precision Products for $11.75 Billion
GE Aerospace agreed to acquire castings maker Consolidated Precision Products for $11.75 billion, its largest acquisition since becoming a standalone company in 2024, in a move to secure supply of the precision metal turbine-blade components that have been a persistent bottleneck across the jet engine industry. CPP is the world's third-largest maker of these parts and supplies about one-quarter of GE's casting needs, and CEO Larry Culp called the capacity "mission-critical" as the company works through a backlog stretching into the next decade. GE's backlog exceeded $210 billion after its second-quarter results, including roughly $170 billion in commercial services and more than $30 billion in defense, and the company expects the deal to generate about $200 million in net synergies and achieve double-digit return on invested capital by the fifth year. GE will fund $7 billion of the acquisition with cash and finance the remainder with new debt, and it expects to complete the acquisition in the second half of 2027, leaving time for antitrust review; CPP supplies GE's rivals alongside GE, which could raise concerns about access to critical casting capacity. GE expects demand for airfoils to increase more than 30% by 2030 from 2026 levels, and it expects CPP to make roughly $2 billion in revenue in 2027.
GE · Capital · Positive $11.75B acquisition funded with $7B cash and new debt, expected to yield ~$200M net synergies and double-digit ROIC by year five
GE · Supply · Positive Acquires CPP for $11.75B to secure mission-critical turbine-blade casting capacity and ease its supply bottleneck
Consolidated Precision Products · Capital · Positive CPP is being acquired by GE Aerospace for $11.75B, with roughly $2B revenue expected in 2027
GE Aerospace to Buy Consolidated Precision Products for $11.75 Billion
GE Aerospace has agreed to acquire Consolidated Precision Products, a producer of cast components for jet engines and other high-stress applications, for $11.75 billion. The deal will be funded with $7 billion in cash and the balance through new debt, and is expected to close in the second half of 2027 pending regulatory approval. Honeywell Aerospace's chief executive said the planned castings acquisition could be positive for the broader aerospace supply chain, a rare vote of confidence from a rival, according to Reuters. GE shares climbed approximately 3.1% to $316.59, up from an earlier $312.42 reading, and now trade 16.74% above the $271.20 GF Value. GE generated $3 billion of free cash flow in the second quarter, putting the acquisition value at roughly 3.9 times that single quarter's cash generation, though investors still have to weigh integration risk, additional leverage and the premium already embedded in the stock.
GE · Capital · Positive GE Aerospace agreed to acquire Consolidated Precision Products for $11.75 billion, funded with cash and new debt.
Consolidated Precision Products · Capital · Positive Consolidated Precision Products is being acquired by GE Aerospace for $11.75 billion.
HONA · Competition · Neutral Honeywell Aerospace's CEO said the castings acquisition could be positive for the broader aerospace supply chain, a rival's comment.
GE Aerospace Lifts 2026 Free Cash Flow Forecast to $8.9-$9.2 Billion
GE Aerospace raised its 2026 free cash flow forecast to $8.9-$9.2 billion, up from an earlier projection of $8.0-$8.4 billion, as the jet engine maker continued heavy capital returns to shareholders. In the first half of 2026, the company repurchased $4.2 billion worth of shares and distributed $873 million in dividends, a 26.9% increase from the prior-year period, with buybacks carried out under a new $20 billion authorization approved in December 2025. In February 2026, GE Aerospace increased its quarterly dividend by 30.6% to 36 cents per share, after returning $1.45 billion in dividend payments and $7.55 billion in share repurchases in 2025. The company has previously outlined plans to raise total shareholder returns by 20% to roughly $24 billion over the 2024-2026 period through dividends and buybacks, and exited the second quarter of 2026 with $9.3 billion in cash, cash equivalents and restricted cash against $2 billion in short-term borrowings. Among peers, RTX Corporation paid $1.9 billion in dividends in the first six months of 2026 and in April 2026 raised its quarterly dividend by 7.4% to 73 cents per share, while Textron Inc. paid $4 million in dividends and repurchased $209 million of shares in the second quarter of 2026.
Aerospace & Aviation › Aircraft Engines & Propulsion Capital
GE · Capital · Positive GE Aerospace raised its 2026 free cash flow forecast to $8.9-$9.2B and is returning heavy capital via buybacks and a 30.6% dividend hike.
Boeing Nears Deal to Sell 150 737 Max Jets to Turkish Airlines
Boeing is nearing an agreement to sell 150 737 Max jets to Turkish Airlines, part of a broader 225-aircraft Boeing order announced after Turkish President Tayyip Erdogan met U.S. President Donald Trump last year, Reuters reported Tuesday, citing people familiar with the negotiations. The Max portion of that larger agreement could be finalized as soon as next week. The order had been delayed by a dispute over engine maintenance, with Turkish Airlines threatening to switch to Airbus amid disagreements with engine manufacturer CFM International over maintenance costs, spare-parts prices and long-term repair risks. CFM is jointly owned by GE Aerospace and Safran. The carrier also sought a leading role in CFM's maintenance network, which would give it faster access to repair technology for engines used on the 737 Max, though it remains unclear whether that request will be included in the final agreement. A completed order would preserve one of the major Boeing agreements announced by the White House last year, and Turkish media have reported that Trump and Erdogan may meet during United Nations gatherings in New York next week.
BA · Demand · Positive Boeing is nearing a deal to sell 150 737 Max jets to Turkish Airlines, a concrete order win.
Turkish Airlines · Supply · Positive Turkish Airlines is set to finalize the 150-jet 737 Max order after resolving engine-maintenance disagreements with CFM.
GE · Competition · Neutral CFM, jointly owned by GE Aerospace, is in a maintenance-cost dispute that delayed the order and prompted Turkish Airlines to threaten switching to Airbus.
SAF.PA · Competition · Neutral CFM, jointly owned by Safran, is in a maintenance-cost dispute that delayed the order and prompted Turkish Airlines to threaten switching to Airbus.
Berkshire's Precision Castparts, Buffett's $37B Mistake, Now an AI Power Play
Precision Castparts, the aerospace parts maker Berkshire Hathaway bought in 2016 for roughly $37.2 billion and later wrote down by about $11 billion, has quietly become a supplier to the AI power build-out, according to an analysis published by TheStreet. The business generated $2.4 billion of net cash from operating activities in 2025, against $1.7 billion in 2015, the last full year before Berkshire owned it, per Berkshire's annual report. Precision Castparts makes airfoil castings for both jet engines and industrial gas turbines, and castings remain one of the most stubborn chokepoints in engine production. Gas turbine backlog and slot reservations grew from 100 to 116 gigawatts in a single quarter, with at least 125 gigawatts expected under contract by year-end, according to GE Vernova, and data center customers account for about 20% of that contracted volume, according to POWER magazine. GE Aerospace just paid $11.75 billion for Consolidated Precision Products, a smaller castings maker, and using that multiple Precision Castparts could be worth around $100 billion, or nearly three times what Berkshire paid, according to Barron's.
Energy Transition & Power Demand › Grid, Transmission & Power Equipment ▲Supply
Precision Castparts Corporation · Demand · Positive Precision Castparts supplies airfoil castings for jet engines and industrial gas turbines, a chokepoint in engine production, benefiting from AI power build-out demand.
BRK-B · Capital · Positive Precision Castparts, owned by Berkshire, has become an AI power build-out supplier generating $2.4B net cash in 2025 and could be worth ~$100B, nearly 3x what Berkshire paid.
Consolidated Precision Products · Capital · Positive Consolidated Precision Products was acquired by GE Aerospace for $11.75B, a castings maker whose multiple implies Precision Castparts could be worth ~$100B.
GEV · Demand · Positive GE Vernova's gas turbine backlog and slot reservations grew from 100 to 116 GW in a quarter, with 125 GW expected under contract by year-end and data centers ~20% of volume.
GE · Capital · Positive GE Aerospace paid $11.75B for Consolidated Precision Products, a castings maker, validating the value of its castings supply chain.
BofA Warns Bombardier U.S. Sales Ban Would Hit Largest Market
A potential ban on Bombardier aircraft sales in the United States could hit the Canadian jet maker's largest market and disrupt an aerospace supply chain spanning thousands of U.S. companies, BofA analysts said. The issue follows President Donald Trump's statement that Bombardier should no longer sell aircraft in the U.S., where its jets are certified by the Federal Aviation Administration and most aerospace goods produced in Canada and Mexico are exempt from U.S. tariffs. The U.S. accounts for about 45% of the global business-jet market and is Bombardier's largest individual market, with the company delivering roughly 80 to 100 aircraft there annually out of total deliveries of around 155, while its 2026 guidance calls for more than 157 aircraft. A halt to U.S. sales could also affect American suppliers, as Bombardier's supply chain includes roughly 2,800 U.S. companies across 47 states and generates about $2.5 billion in annual U.S. purchases. GE Aerospace supplies engines for Bombardier's Global 7500 and 8000 aircraft, Honeywell powers the Challenger 300, 350 and 3500 family, and RTX's Collins Aerospace supplies avionics across the Global and Challenger ranges. Trade tensions could also affect U.S. defense contractors if Canada shifts future procurement toward European or Asian suppliers, with programs potentially exposed including Canada's planned purchase of 88 Lockheed Martin F-35A fighters, which carries an acquisition budget of about C$27.7 billion, of which only 16 are firmly ordered and Ottawa has considered Saab's Gripen as a possible partial alternative. Canada also has commitments involving Boeing's P-8A Poseidon and General Atomics' MQ-9B SkyGuardian drones, and while a complete cancellation of Canada's outstanding U.S. defense contracts is considered unrealistic, future purchases could gradually shift toward other suppliers if trade relations deteriorate.
Defense & Geopolitical Fragmentation › Defense Primes — United States Geopolitics
Bombardier Inc. · Regulation · Negative A potential U.S. ban on Bombardier aircraft sales would hit its largest market, where it delivers roughly 80-100 aircraft annually.
GE · Supply · Negative Bombardier's supply chain includes ~2,800 U.S. companies and GE Aerospace supplies engines for the Global 7500/8000, so a U.S. sales ban would hit its engine orders.
HON · Supply · Negative Honeywell powers Bombardier's Challenger 300/350/3500 family, so a halt to Bombardier U.S. sales would reduce demand for its engines.
RTX · Supply · Negative RTX's Collins Aerospace supplies avionics across Bombardier's Global and Challenger ranges, so a U.S. sales ban would hit that supply relationship.
LMT · Geopolitics · Negative Canada could shift procurement away from U.S. defense contractors, potentially exposing its planned purchase of 88 Lockheed Martin F-35A fighters.
GE Aerospace to Acquire Consolidated Precision Products for $12 Billion
GE Aerospace has agreed to acquire Consolidated Precision Products, one of the world's largest precision castings providers and a major GE supplier, for around $12 billion, its largest acquisition since becoming a standalone publicly traded company. The deal would give GE greater control over a critical part of its engine supply chain, where precision castings are a major pressure point, and could help it meet demand already sitting in its backlog of more than $210 billion, including over $170 billion in commercial services. About 70% of CPP's revenue comes from commercial and defense engines, and GE expects CPP to generate around $2 billion in revenue in 2027. GE values CPP at about 26 times expected 2027 EBITDA before net synergies, and will fund the purchase with a mix of cash on hand and debt, expecting it to be accretive to adjusted earnings and free cash flow in the first year excluding certain items. The investment case hinges on whether CPP can raise factory yields and production efficiency enough to justify the premium, since integration problems, additional capital requirements, and slower productivity gains could leave GE carrying more debt without sufficient cash flow.
GE · Capital · Positive GE Aerospace agrees to acquire CPP for ~$12B, its largest deal as a standalone company, expected accretive to adjusted earnings and free cash flow in year one.
GE · Supply · Positive Deal gives GE greater control over a critical engine supply-chain pressure point (precision castings), helping meet its $210B backlog.
Consolidated Precision Products · Capital · Positive CPP is being acquired by GE Aerospace for around $12 billion, valuing it at ~26x expected 2027 EBITDA.
GE Aerospace to Buy Consolidated Precision Products for $11.75 Billion
GE Aerospace said Tuesday it agreed to acquire Consolidated Precision Products for $11.75 billion, expanding its control over the supply of specialized castings used in commercial aircraft engines, military equipment and industrial gas turbines. The deal headlines a busy week of M&A across sectors. Copart agreed to acquire ACV Auctions for $10.50 a share in cash, an implied equity value of about $1.9 billion, while Analog Devices will acquire Alif Semiconductor in an all-cash transaction for $1.35 billion. Bending Spoons agreed to acquire collaborative-workspace company Miro at an enterprise value of $1.355 billion in an all-cash deal expected to close in the fourth quarter of 2026. Tamarack Valley Energy agreed to acquire Headwater Exploration in an all-stock deal valued at C$10B, about US$7.25B, creating the largest publicly traded oil producer focused on Alberta's Clearwater formation, and EverBank Financial agreed to acquire Pacific Northwest bank WaFd in a $3.9B reverse merger creating a regional bank with about $75B in assets. Meta Platforms purchased Swedish AI startup Stilla.ai, Apple acquired Sonera Magnetics in a deal disclosed by the European Commission, Grab Holdings is said to be in talks for a majority stake in Atome Financial, and ARC Group Acquisition I agreed to acquire Malaysian licensed financing company Firstborn Top Capital.
Semiconductors › Analog, Power & Discrete Competition
Artificial Intelligence › Edge & On-device AI Silicon Technology
BSP · Capital · Positive Bending Spoons agreed to acquire collaborative-workspace company Miro at an enterprise value of $1.355 billion.
GE · Capital · Positive GE Aerospace agreed to acquire Consolidated Precision Products for $11.75 billion, expanding control over specialized castings supply.
Alif Semiconductor, Inc. · Capital · Positive Analog Devices will acquire Alif Semiconductor in an all-cash transaction for $1.35 billion.
Bending Spoons · Capital · Positive Bending Spoons agreed to acquire collaborative-workspace company Miro at an enterprise value of $1.355 billion.
Consolidated Precision Products · Capital · Positive GE Aerospace agreed to acquire Consolidated Precision Products for $11.75 billion.
EverBank Financial Corp · Capital · Positive EverBank Financial agreed to acquire WaFd in a $3.9B reverse merger creating a ~$75B-asset regional bank.
Aerospace parts M&A accelerates, 154 deals in January-August, closing in on record annual total
Mergers and acquisitions are accelerating across the aerospace supply chain, with 154 publicly announced commercial aerospace-related M&A deals in January-August of this year, closing in on the record annual total of 159 set in 2019. According to Janes Capital Partners, an investment bank specializing in the aerospace and defense sector, the 154 deals had a total value of 14 billion dollars, compared with 157 deals worth a total of 37.5 billion dollars in all of last year. Acquirers are actively snapping up suppliers with skilled workers, advanced manufacturing technology and production capacity. GE Aerospace announced this week that it will acquire castings maker Consolidated Precision Products for 12 billion dollars. In May, Parker Hannifin agreed to acquire the aerospace division of Circor, which makes actuation systems and landing gear systems, from private equity giant KKR for 2.6 billion dollars. Behind the trend is the fact that Boeing's and Airbus's production plans have become clearer, giving buyers confidence in long-term demand prospects. Boeing has stabilized production of its flagship 737 MAX, and Airbus aims to deliver 870 aircraft this year, which would surpass its record 863 deliveries in 2019.
GE Aerospace Defense Segment Revenue Rises 16% to $3.4 Billion
GE Aerospace's Defense & Propulsion Technologies segment grew revenue 16% year over year to $3.4 billion in the second quarter of 2026, with the Defense & Systems business up 11.7% to $2.2 billion and Propulsion & Additive Technologies up 23.4% to $1.2 billion. Recent contract wins include a Republic of Korea Navy deal for 12 LM2500+G4 marine gas turbine engines for its KDDX naval destroyer project, a Defense Innovation Unit contract for a hypersonic test bed under the HyCAT project, and a Turkish Aerospace Industries contract to continue integrating the F404 engine into Türkiye's Hurjet jet trainer. Segment orders rose 12% year over year in the quarter, operating profit grew 18% to $475 million, and the company exited the quarter with a total backlog of $210 billion. For 2026, GE expects Defense & Propulsion Technologies revenue to increase in the low-double-digit range. GE also recently agreed to acquire Consolidated Precision Products from Warburg Pincus and Berkshire Partners for about $11.75 billion, using $7 billion in cash and new debt for the remaining consideration.
Defense & Geopolitical Fragmentation › Defense Primes — Europe & Asia ▲Demand
GE · Capital · Positive Defense & Propulsion Technologies revenue rose 16% to $3.4B with operating profit up 18% to $475M and a $210B backlog.
GE · Demand · Positive Recent contract wins (Korea Navy LM2500+G4 engines, DIU hypersonic test bed, Turkish Aerospace F404 integration) drove segment orders up 12%.
GE Aerospace signs preliminary deal to explore Polish FA-50 engine maintenance hub
GE Aerospace signed a preliminary agreement with Poland's Military Aviation Works to explore establishing domestic maintenance and repair capabilities for the engines powering the Polish Air Force's fleet of KAI FA-50 fighter jets. The memorandum of understanding covers potential maintenance, repair and overhaul services, including depot-level maintenance, for the F404-GE-102 engine, with GE Aerospace and Military Aviation Works, known locally as WZL-2, assessing the equipment, facilities and other requirements needed to service the engines in Poland. The Polish Air Force ordered 48 FA-50 light combat aircraft in 2022, with the first 12 jets delivered in 2023 in the FA-50GF Gap Filler configuration and an additional 36 expected in the more advanced FA-50PL configuration; the proposed arrangement would cover the engines for all 48 aircraft, along with spare engines. GE Aerospace said establishing local support would improve aircraft readiness and availability for the Polish military, while WZL-2 described domestic maintenance capacity as a way to strengthen Poland's operational independence and reduce reliance on overseas service providers. GE Aerospace has delivered more than 4,000 F404 engines, which have accumulated over 13 million flight hours, with about 300 of the engines powering the T-50, TA-50 and FA-50 aircraft produced by Korea Aerospace Industries. The memorandum is exploratory, and GE Aerospace did not disclose potential revenue, investment requirements or a timetable for reaching a definitive agreement.
Defense & Geopolitical Fragmentation › Defense Primes — Europe & Asia Supply
GE · Demand · Positive GE Aerospace signed an MOU to explore establishing MRO/depot-level maintenance for F404 engines powering Poland's 48 FA-50 jets, expanding its engine support business.
Military Aviation Works (WZL-2) · Demand · Positive Military Aviation Works (WZL-2) would gain domestic depot-level maintenance and repair work for the FA-50 F404 engines under the MOU.
GE Aerospace's $12 Billion Acquisition to Boost Stock, Cramer Says
Jim Cramer said GE Aerospace's nearly $12 billion acquisition of Consolidated Precision Products, a specialty castings supplier, will send the stock up because it strengthens the company's defense business. The deal, reported by CNBC, involves buying the supplier from private equity firms Warburg and Berkshire Partners. GE's Defense & Propulsion Technologies segment grew revenue 16% to $3.443 billion in Q2 2026, and the company raised its full-year operating profit outlook for that segment to $1.6 billion to $1.7 billion. GE Aerospace closed at $334.91, up 21.94% over the past year but down 9.5% over the past month, offering a better entry point for new investors. The company's backlog exceeds $210 billion, with about $170 billion in commercial services, and the acquisition aims to address supply chain bottlenecks in jet engine castings.
GE · Capital · Positive GE Aerospace is acquiring Consolidated Precision Products for nearly $12 billion, strengthening its defense business and addressing jet engine casting supply bottlenecks.
Consolidated Precision Products · Capital · Positive Consolidated Precision Products, a specialty castings supplier, is being acquired by GE Aerospace for nearly $12 billion.
Berkshire Partners · Capital · Neutral Berkshire Partners is a private equity seller of Consolidated Precision Products in the deal, but no terms or impact on Berkshire Partners are detailed.
Warburg Pincus · Capital · Neutral Warburg Pincus is a private equity seller of Consolidated Precision Products in the deal, but no terms or impact on Warburg are detailed.
Avianca Secures First-of-Its-Kind ABGF Financing for Engine MRO in Brazil
Avianca, part of Abra Group, has secured a first-of-its-kind financing agreement with the Brazilian Agency for the Management of Guarantee Funds and Guarantees (ABGF) to support maintenance, repair and overhaul (MRO) services for its CFM56 engines at GE Aerospace's Celma MRO shop in Brazil. The financing, arranged through Citibank and backed by ABGF's Export Credit Insurance, includes up to US$300 million and marks the first time a non-Brazilian airline has obtained such financing for aircraft engine maintenance services. The agreement reinforces Brazil's position as a regional hub for specialized aerospace services, with GE Aerospace's Celma facility serving as its main engine overhaul operation in Latin America, handling nearly 25% of the company's internal engine maintenance work worldwide. Executives from Avianca, ABGF, and GE Aerospace hailed the deal as a boost to fleet reliability, Brazilian high-technology exports, and regional aerospace value chains.
Trump Refuses to Allow Bombardier Jet Sales in the US
President Trump said on the 7th that he would not allow Canada's Bombardier to sell its private jets in the US unless the company produces them in the country. In a post on his social media platform Truth Social, he wrote, "We will no longer allow Bombardier to sell in the US! The quality of their products is not good enough!" He added, "If they want access to our market, they must manufacture here and stop treating America like a piggy bank." The remarks came as Canada was set to impose retaliatory tariffs on US goods on the 8th in response to US tariffs. The White House declined to comment on any measures to block sales of Bombardier aircraft that have received FAA type certification. Aerospace analyst Richard Aboulafia noted that most of the engines for Bombardier jets are made by US firms Honeywell Aerospace and GE Aerospace, making customer cancellations or sales bans unlikely. Bombardier employs 3,500 people in the US and has 2,800 suppliers, and produces wings for its flagship Global 8000 jet in Texas.
Bombardier Inc. · Tariff · Negative Trump said he would not allow Bombardier to sell its private jets in the US unless it manufactures them in the country.
GE · Tariff · Neutral Analyst notes most Bombardier jet engines are made by GE Aerospace, so a US sales ban could hurt engine demand, but the article says such a ban is unlikely.
HONA · Tariff · Neutral Analyst notes Honeywell Aerospace makes many Bombardier jet engines, so a US sales ban could hurt engine demand, but the article says such a ban is unlikely.
StandardAero celebrated the grand opening of its expanded facility in Winnipeg, Manitoba, which grows the site's footprint by 40 percent and enhances its engine maintenance, repair, and overhaul capacity. The new 70,000-square-foot expansion supports full MRO services for GE Aerospace CF34-3/8 and CFM International CFM56 turbofan engines, which power regional aircraft like the Embraer E170/E175 and the Boeing 737 NG. This investment reinforces the company's 115-year presence in Winnipeg, where it employs 1,500 workers across eight facilities. StandardAero has been a GE-Branded Service Agreement partner for the CF34 since 2001 and a CFM International General Support License Agreement holder for the CFM56 since 2009. The company says the expansion positions it to meet growing customer demand and deliver greater value and reliability.
GE Aerospace to Power South Korea's Next-Gen Destroyers
GE Aerospace has won an order to supply 12 LM2500+G4 marine gas turbine engines for South Korea's next-generation destroyer program, known as KDDX. The engines will power six planned destroyers, with each vessel using two engines as part of a full electric propulsion system. Financial terms were not disclosed. This contract extends GE's relationship with the Republic of Korea Navy, which has already procured 163 marine gas turbines for 95 ships. Local partners Hanwha Aerospace and NRTEC will handle manufacturing and assembly in South Korea. The KDDX vessels will be the Korean Navy's first with stealth-integrated radar and will carry anti-aircraft and land-attack missiles. GE's Defense & Propulsion Technologies generated $11.2 billion in revenue in 2025, compared with $38.1 billion for Commercial Engines & Services.
General Electric wins $2.9B Navy deal for F414 engine support
General Electric announced Tuesday it was awarded a not-to-exceed $2.875 billion U.S. Navy contract to provide logistics support for 17 F414 engine components used in F/A-18 E/F/G aircraft. The five-year performance-based logistics contract runs through August 2031, with no option periods. A total of $198.2 million in fiscal 2026 working capital funds will be committed at award, with $148.7 million obligated initially. Additional delivery orders will be funded with future Navy working capital funds as required. The contract was awarded by the Naval Supply Systems Command Weapon Systems Support.
Kratos and GE Aerospace Secure U.S. Air Force Contract for Missile Engine
Kratos Defense & Security Solutions and GE Aerospace announced that their jointly developed GEK800 engine received the U.S. Military Engine Type Designation F143-ZZ-100 and secured a U.S. Air Force Engineering, Manufacturing, and Development contract for the Joint Air-to-Surface Standoff Missile. The low-cost, high-performance turbofan is designed for cruise missiles and uncrewed aerial vehicles, marking a milestone in aligning defense primes with specialized tech disruptors. In Q2 2026, GE Aerospace reported $13.3 billion in GAAP revenue, up 21% year-over-year, and adjusted EPS of $2.02, up 22%, while Kratos reported revenue of $458.8 million, a 30.5% total increase and 19.1% organic growth, with adjusted EPS of $0.21. Kratos also raised its full-year organic revenue growth guidance to 18%–23%, backed by a $2.08 billion backlog, while GE raised its full-year guidance and generated $3.0 billion in quarterly free cash flow. Kratos faces execution pressures with negative free cash flow of $18.9 million in Q2, while GE's bear case includes supply chain bottlenecks and cyclical risks. Hedge fund data shows 45 funds holding Kratos and 113 holding GE in Q2, with Cathie Wood's Ark Investment Management increasing its Kratos stake by 34% to 4.67 million shares.
KTOS · Demand · Positive Kratos and GE Aerospace won a U.S. Air Force contract for the GEK800 engine, directly increasing demand for Kratos's defense offerings.
GE · Demand · Positive GE Aerospace secured a U.S. Air Force contract for the GEK800 missile engine, boosting demand for its defense products.
GE Wins Up to $319.5M J85 Engine Contract Modification
General Electric announced on Friday that it was awarded a maximum $319.5 million contract modification to exercise an option for J85 engine supplies. The option covers a two-year, four-month period, with work expected to be completed by December 31, 2028. The contract is funded through fiscal years 2026 to 2029 defense appropriations and defense working capital funds. The Defense Logistics Agency Weapons Support is the contracting activity.
GE Aerospace Leads LongRun Equity Strategy's Q2 Performance
Rothschild & Co Asset Management's LongRun Equity Strategy highlighted GE Aerospace as a leading contributor to its second-quarter 2026 performance, citing outstanding results across all business lines. The strategy returned 7.6% in EUR unhedged terms, while its benchmark gained 15.8%. GE Aerospace, which designs and produces commercial and defense aircraft engines, closed at $342.73 per share on August 27, 2026, with a market capitalization of $355.60 billion. The stock posted a one-month return of -4.82% but gained 24.54% over the past 52 weeks. The fund noted strong growth in Commercial Engines & Services and a book-to-bill ratio exceeding 2x in the Defense business. GE Aerospace ranked 26th on Insider Monkey's list of 40 most popular stocks among hedge funds, with 113 hedge fund portfolios holding the stock at the end of the second quarter, down from 119 in the previous quarter.
GE · Capital · Positive LongRun Equity Strategy cited GE Aerospace as a leading contributor to its Q2 performance, with strong results across all business lines.
GE Aerospace Raises 2026 Profit Outlook Despite Margin Dip
GE Aerospace reported a second-quarter 2026 operating profit of $2.75 billion, up 18% year over year, but its operating margin fell 130 basis points to 21.7% due to growth investments and cost inflation. Costs of sales surged 26.7% to $8.7 billion, while R&D expenses rose 28.1% to $460 million. Despite these pressures, the company raised its full-year 2026 operating profit guidance to $10.55-$10.75 billion, up from a prior forecast of $9.85-$10.25 billion, implying 17% growth at the midpoint. Among peers, RTX Corporation's adjusted segment margin expanded 40 basis points to 12.4%, while Textron's net income margin slipped 10 basis points to 6.5%. GE shares have gained 10.5% in the past three months, and the Zacks Consensus Estimate for its earnings has risen for both 2026 and 2027.
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