Founded in 1892, Evendale, Ohio-based GE Aerospace (GE) designs and produces commercial and defense aircraft engines, integrated engine components, electric power, and mechanical aircraft systems. The company’s market cap is around $338.3 billion. The company is expected to announce its fiscal fourth-quarter earnings for 2025 on Thursday, Jan. 22. Ahead of the event, analysts expect GE Aerospace to report a profit of $1.40 per share on a diluted basis, up 6.1% from $1.32 per share in the year-ago quarter ...

Bristol Gate Capital Partners, an investment management company, published its Q3 2025 investor letter for the “US Equity Strategy”. A copy of the letter can be downloaded here. The strategy underperformed the benchmark, the S&P 500® Total Return Index, this quarter, but still surpassed the index in dividend growth. The underperformance was due to a lack of significant exposure to the AI/TMT sector or the Value sector, which provides advantages stemming from the Federal Reserve's rate cut. The portfolio ret ...

Core Insights - Pratt & Whitney has been awarded a $1.6 billion contract for the sustainment of F135 engines, which are essential for the F-35 Lightning II fighter aircraft [1][2] Group 1: Contract Details - The contract will fund critical sustainment activities such as depot level maintenance, spare parts replenishment, material management, propulsion system integration, engineering support, and software sustainment for both U.S. and international customers [2] - The F135 sustainment network includes multiple global depot facilities, 39 bases, and 12 ships worldwide, ensuring mission readiness for F-35 operators [3] Group 2: Strategic Importance - The investment in F135 sustainment is aimed at keeping allied forces prepared to address current and future threats, enhancing the operational capabilities of F-35 operators globally [3] - Pratt & Whitney has delivered over 1,300 F135 production engines to 20 allied nations, indicating a strong global presence and reliance on the F135 engine [4] Group 3: Future Outlook - The F135 Engine Core Upgrade will utilize the existing sustainment network to provide cost-effective infrastructure that enhances readiness and support for F-35 partner nations for decades [4] - RTX, the parent company of Pratt & Whitney, is positioned as the world's largest aerospace and defense company, with projected sales exceeding $80 billion in 2024 [6]

Core Insights - The Pratt & Whitney Canada PT6A turboprop engines have achieved over 1 million flight hours in 2025, marking nearly 50 years of service in agricultural aviation and firefighting missions [1][3] - The PT6A engine family has produced close to 5,000 engines since its inception, with eight different models developed to support various aerial applications [1][2] - The PT6 engine family has powered over 155 different aircraft types and accumulated more than 500 million flying hours since its introduction in 1963, showcasing its reliability and performance [3] Company Overview - Pratt & Whitney Canada is a subsidiary of RTX, a leading aerospace and defense company with over 185,000 employees and projected sales exceeding $80 billion in 2024 [5] - The company has a global service network with more than 55 facilities in 25 countries, providing maintenance, repair, and overhaul (MRO) services for its engines [5] Industry Impact - The PT6A engines are utilized in single-engine aircraft manufactured by Air Tractor and Thrush Aircraft, which play a crucial role in ensuring food supply, pest control, forest health, and firefighting efforts globally [2][3] - The PW100 engine family powers waterbombers like the DHC-415 and DHC-515, which are essential for firefighting missions, including those in California [4]

Group 1 - GE Aerospace is recognized for its remarkable business performance, particularly in the context of the recent government shutdown which overshadowed its quarterly results [1][2] - The company manufactures commercial and defense aircraft engines, power systems, and provides maintenance, repair, and overhaul services, along with spare parts for aviation and military applications [2] - CEO Larry Culp has been praised for successfully reinventing GE Aerospace, leading to significant financial gains for investors [2] Group 2 - Despite the positive outlook for GE Aerospace, there is a belief that certain AI stocks may offer greater upside potential and carry less downside risk [2]

Core Insights - GE Aerospace has significantly outperformed the broader market, with stock prices increasing by 82.4% year-to-date and 77.1% over the past 52 weeks, compared to the S&P 500 Index's gains of 15.1% in 2025 and 18.5% over the past year [2][4] - The company reported exceptional Q3 results, with non-GAAP topline revenue of $11.3 billion, a 26.4% year-over-year increase, and adjusted EPS of $1.66, up 44% year-over-year, surpassing consensus estimates [4][5] - Analysts have raised their full-year revenue and earnings guidance for GE, with expectations for an adjusted EPS of $6.17, reflecting a 34.1% year-over-year increase [5] Stock Performance - GE Aerospace's stock gained 1.3% following the release of its Q3 results, indicating strong market confidence [4] - The stock has outperformed the Industrial Select Sector SPDR Fund's 15.8% surge in 2025 and 14% uptick over the past 52 weeks [3] Analyst Ratings - Among 20 analysts covering GE Aerospace, the consensus rating is a "Strong Buy," with 14 "Strong Buys," two "Moderate Buys," and four "Holds" [6] - JP Morgan analyst Seth Seifman reiterated an "Overweight" rating and raised the price target from $275 to $325, with a mean price target of $337.82 representing an 11.1% premium [8]

Core Viewpoint - The market initially misjudged the performance of GE Aerospace and GE Vernova, both of which reported strong earnings but experienced stock sell-offs before rebounding significantly. Group 1: GE Aerospace - GE Aerospace reported a remarkable 26% organic revenue growth, driven by strong performance in commercial engines, services, and defense sectors [3][6] - The commercial engines and services segment saw a 22% increase in equipment revenue and a 28% rise in services revenue, leading to a 35% growth in earnings for this division [6][7] - Management raised their full-year revenue growth forecast for commercial engines services from high teens to low 20s, indicating positive momentum [8] - Supply chain improvements were noted, with priority suppliers achieving over 95% of committed volumes for three consecutive quarters, contributing to a 40% year-over-year increase in Leap engine deliveries [9][11] - GE Aerospace is positioned to benefit from increased aircraft purchases due to trade dynamics, as evidenced by Korean Air's order for 103 aircraft that will include GE engines [13][14] Group 2: GE Vernova - GE Vernova reported strong organic revenue growth and a 15% year-over-year increase in backlog, reaching over $135 billion [15][16] - The company secured nearly $15 billion in new orders, reflecting robust demand for its products [15][16] - Management's acquisition of the remaining 50% of Prolle aims to enhance exposure to the electrification segment, which is expected to grow significantly [18][20] - The combined serviceable addressable market for GE Vernova is projected to expand at a 10% compound annual growth rate, potentially doubling by 2030 [20] - The company has repurchased $2.2 billion worth of its own stock this year and plans to continue buybacks, indicating confidence in its stock value [23]

Core Insights - GE Aerospace's stock has reached a record high of $316.53 after exceeding earnings and revenue estimates for Q3, along with an optimistic profit forecast for 2025 and a positive outlook for Q4 [1] Stock Performance - The stock is experiencing a third consecutive gain, breaking through a resistance level at $305, which had previously limited its price movement since the last all-time high [2] - The 30-day moving average has been supporting the stock's upward trend since late April, contributing to an impressive 85.6% increase year-to-date [2] Options Activity - A reduction in pessimism in the options market could further benefit GE, as indicated by a 10-day put/call volume ratio of 1.16, which is higher than 83% of annual readings [3] - Today's options trading shows 23,000 calls and 23,000 puts exchanged, which is 13 times the typical volume for this time [4] - The most traded options are the November 300 put and the 270 put, with options being reasonably priced as reflected by a Schaeffer's Volatility Index (SVI) of 36%, indicating low volatility expectations [4]

Core Insights - RTX's stock performance remained stable despite a 0.6% decline in the S&P 500, indicating positive investor sentiment due to news from its Pratt & Whitney division [1][7] Business Division Highlights - Pratt & Whitney, a key division of RTX, received certification for its GTF Advantage engine from the European Union Aviation Safety Agency (EASA), following a similar certification from the FAA [2][3] - The GTF Advantage engine is designed to offer greater thrust and improved fuel efficiency compared to existing market alternatives [4] Market Impact and Future Prospects - Pratt & Whitney's president described the GTF Advantage engine as a potential "game-changer" for operators, although no specific sales impact estimates were provided for RTX [5] - Despite the positive news, RTX was not included in a list of top stock recommendations by The Motley Fool, which highlighted other stocks with potentially higher returns [6][8]

Core Insights - The GTF Advantage engine has received type certification from the European Union Aviation Safety Agency (EASA), allowing for entry into service expected in 2026 [1][2] - The GTF Advantage engine offers enhanced performance with 4% more takeoff thrust at sea level and 8% more at high altitude, along with improved fuel efficiency [2] - Pratt & Whitney has introduced the Hot Section Plus (HS+) upgrade option for existing GTF engines, which will provide 90 to 95% of the durability benefits of the GTF Advantage [3] Company Overview - Pratt & Whitney, a business unit of RTX, is a leader in aircraft engine design, manufacturing, and servicing for military and commercial aviation [4] - RTX is the largest aerospace and defense company globally, with over 185,000 employees and projected sales exceeding $80 billion in 2024 [5]