GE Aerospace defense orders jump 67% as contract pipeline strengthens

GE Aerospace's Defense & Propulsion Technologies orders surged 67% in Q1 2026, with revenue climbing 19% to $3.2 billion.

The segment's operating profit rose 17% to $379 million, supported by a pipeline of contracts that includes a $1.4 billion deal for T408 engines for the US Marine Corps' CH-53K helicopter fleet and a $5 billion US Air Force program for F110 engines, parts and support services.

The company secured a deal from Boeing Defence UK to extend support services for T700-GE-T701D engines that power the British Army's Apache AH-64E fleet. In March, GE entered a multiyear partnership with Palantir Technologies to improve fleet management and operational readiness for US Air Force military aircraft.

For 2026, GE expects Defense & Propulsion Technologies revenue to increase in the mid-to-high single-digit range, with operating profit between $1.55 billion and $1.65 billion.

Among peers, RTX reported first-quarter bookings of $14 billion and a record backlog of $271 billion, while Textron's Bell segment revenue grew on the MV-75 Cheyenne program and Textron Systems revenue rose 13% on higher Ship-to-Shore Connector volume.

GE shares have gained 1.6% in the past three months, outperforming the industry's 12.4% decline. The stock trades at 41.3 times forward earnings, a premium to the industry average of 31.8 times.

The guidance signals management expects defense demand to remain strong as US and allied military budgets support sustained procurement. Investors will watch the next quarterly filing for updates on contract conversions and segment margin trajectory.

This article is for informational purposes only and does not constitute investment advice.