Core Insights - GE Aerospace stock has increased by over 65% from April 18, 2025, to October 15, 2025, driven by strong operational performance and a positive outlook [1] - The company's P/E multiple experienced a significant change of 42.6%, indicating a shift in investor sentiment and valuation [3] Financial Performance - In Q2 2025, GE Aerospace reported total revenue of $11.0 billion, a 21% year-over-year increase, and adjusted EPS of $1.66, up 38% [5] - Free cash flow nearly doubled to $2.1 billion, prompting the company to raise its full-year 2025 guidance and outlook for operating profit and free cash flow through 2028 [5] Strategic Developments - GE Aerospace secured substantial new engine commitments, including a landmark deal with Qatar Airways for over 400 GE9X and GEnx engines, contributing to a backlog of approximately $175 billion by the end of Q2 2025 [5] - The company is addressing supply chain constraints and enhancing capacity through strategic initiatives, including a nearly $1 billion investment in U.S. manufacturing and technology [5] Market Sentiment - Analyst sentiment is predominantly positive, with multiple firms reiterating "buy" or "outperform" ratings and raising price targets for GE Aerospace shares following strong financial results [9] - The U.S. government has allowed GE Aerospace to resume shipments of jet engines to China's COMAC, opening new business growth opportunities [9]

Core Insights - The surge in global air travel and increased defense spending are driving strong demand for jet engines, benefiting RTX Corp.'s Pratt & Whitney business unit [1] Commercial Aviation - Airlines are modernizing fleets with fuel-efficient engines to lower operating costs and meet sustainability goals, leading to increased demand for Pratt & Whitney's GTF engines, which offer up to 20% lower fuel consumption [2] Defense Sector - Pratt & Whitney's F135 engine powers the F-35 Lightning II, and geopolitical tensions are increasing military aircraft procurement, boosting demand for RTX's combat jet engines [3] Financial Performance - Pratt & Whitney's sales grew 14% year over year in Q1 2025, 18% in Q4 2024, 14% in Q3 2024, and 19% in Q2 2024, indicating strong top-line performance [4] Future Outlook - As of June 18, 2025, RTX has received nearly 1,100 GTF engine orders and commitments, and secured contracts worth up to $1.5 billion for F119 engine support and $1.3 billion for the F135 Engine Core Upgrade [5][10] Competitors - Other jet engine manufacturers like GE Aerospace and RollsRoyce are also experiencing solid order flows due to the same demand trends [6] Stock Performance - RTX shares have increased by 43.8% over the past year, outperforming the industry growth of 14.2% [9] Valuation - RTX is trading at a forward 12-month P/E multiple of 23.17X, which is approximately 11.6% lower than the industry average of 26.20X [11] Sales and Earnings Estimates - The Zacks Consensus Estimate suggests a sales improvement of 4.2% and 5.8% for 2025 and 2026, respectively, although earnings per share estimates have declined over the past 60 days [12]