GE Aerospace Shares Approach Annual Peak on Major Contract Wins

A substantial order from the commercial aviation sector and a significant defense contract have propelled General Electric's stock toward its yearly high. The industrial conglomerate's aerospace division is currently riding a powerful tailwind, with investors now questioning whether this momentum can be sustained.

The fundamental picture for GE is solid. For the third quarter of 2025, the company reported adjusted revenue of $11.3 billion, a 26% year-over-year increase. Adjusted earnings per share (EPS) saw an even more pronounced jump, climbing 44% to reach $1.66, a figure that comfortably exceeded market expectations. Management has reaffirmed its full-year 2025 guidance, projecting an adjusted EPS in the range of $6.00 to $6.20.

To meet escalating demand, the company is channeling $75 million into modernizing its production facilities located in Michigan. This capital investment is aimed at expanding capacity and ensuring reliable delivery schedules for its LEAP engine program.

Dual Contract Catalysts Drive Sentiment

Market optimism is being fueled by two key announcements. The primary driver is a strategic agreement between Turkish carrier Pegasus Airlines and CFM International, a joint venture co-owned by GE Aerospace and France’s Safran. The airline has committed to a deal for up to 300 LEAP-1B engines to power its future fleet of Boeing 737 MAX 10 aircraft. This agreement, which includes a long-term service and parts package, secures a predictable revenue stream for GE well into the coming decade.

Should investors sell immediately? Or is it worth buying General Electric?

Concurrently, the company's defense segment has fortified its foundation. The U.S. Navy recently awarded a research and development contract valued at $22.2 million for upgrades to the F414 engine. This powerplant is used in Boeing's F/A-18E/F Super Hornet fighter jets, and the contract reinforces GE's entrenched role in critical national infrastructure projects.

Execution in Focus Amid High Expectations

The central challenge facing GE's leadership is the flawless execution of its now-swollen order book. While the market is rewarding the clear growth narrative provided by these mega-contracts, the current elevated valuation multiples leave little room for error. Investors are anticipating a seamless ramp-up in production.

A near-term milestone is the upcoming quarterly dividend of $0.36 per share, for which the record date is set for December 29.