Core Insights - GE Aerospace is highlighted as a must-buy stock, particularly due to its recent advancements in the GEK800 engine testing, which is aimed at unmanned aerial systems and combat aircraft [1][2] - The collaboration with Kratos Defense reflects a strategic move towards developing affordable, high-performance engines for future defense technologies [2] - Bernstein's analyst Douglas S. Harned reaffirmed an Outperform rating for GE Aerospace, setting a price target of $374, driven by strong performance in the commercial aftermarket segment [3] Company Developments - The altitude testing for the GEK800 engine was completed at Purdue University, marking a significant milestone in the partnership between GE Aerospace and Kratos [1] - The GEK800 engine, weighing 800 pounds, has undergone over 50 ground test starts since the partnership began in 2023, indicating robust progress in development [1] - GE Aerospace has increased its Customer Equipment Services revenue guidance by $1 billion following a solid third quarter performance [4] Financial Performance - Bernstein raised its 2025 earnings estimate for GE Aerospace to $6.28 per share and increased its revenue forecast to $41.8 billion, reflecting confidence in the company's growth trajectory [4] - The LEAP engine deliveries exceeded expectations, contributing to the positive outlook for GE Aerospace's financial performance [4] Industry Context - The collaboration between GE Aerospace and Kratos is supported by the Air Force Research Laboratory and Office of Naval Research, emphasizing the importance of government backing in defense technology advancements [2] - GE Aerospace is recognized as a leader in propulsion systems for both commercial and military aircraft, showcasing its significant role in the aviation industry [5]

Core Insights - The successful completion of altitude testing for the GEK800 engine marks a significant milestone in its development, showcasing the collaboration between Kratos Defense & Security Solutions and GE Aerospace [2][4][5] - The GEK800 engine, weighing 800 lbs, is designed to power unmanned aerial systems (UAS), collaborative combat aircraft (CCAs), and missiles, with over 50 engine starts completed in ground testing [4][8] - The partnership aims to provide high-performance, affordable propulsion systems that can be rapidly produced to meet defense demands, with a focus on advancing propulsion technologies for next-generation aircraft [2][7] Testing and Development - Altitude testing began in late September and concluded with successful engine limits testing, demonstrating the engine's performance and durability [1][3] - The collaboration involved Kratos, GE Aerospace, and Purdue University's Zucrow Laboratories, achieving nearly all test objectives and validating the testing capabilities at the newly expanded ZL9 facility [5][6] - The joint team identified rotor speed limits and compressive system boundaries during testing, further confirming the engine's robustness [3] Strategic Collaboration - A formal teaming agreement was signed in June 2025 to advance propulsion technologies, building on a previous Memorandum of Understanding (MOU) [7] - Kratos brings over 25 years of experience in developing small, affordable engines, while GE Aerospace contributes a century of expertise in propulsion technology [8] - The collaboration aims to bridge the gap from prototype to deployment, enhancing the production capabilities of advanced engine designs [8]

GE Aerospace (NYSE:GE) will release earnings results for the third quarter, before the opening bell on Tuesday, Oct. 21.Analysts expect the Evendale, Ohio-based company to report quarterly earnings at $1.47 per share, up from $1.15 per share in the year-ago period. The consensus estimate for GE Aerospace's quarterly revenue is $10.41 billion, compared to $8.94 billion a year earlier, according to data from Benzinga Pro.On Sept. 23, Kratos Defense & Security Solutions Inc. (NASDAQ:KTOS) and GE Aerospace anno ...