GE Aerospace (NYSE:GE) is one of the defense & aerospace stocks gaining from rising geopolitical spending. On January 13, the company received a significant boost after Delta Air Lines selected its GEnx engines to power its 30 new Boeing 787-10 aircraft. Delta Airlines Settles on GE Aerospace (GE) GEnx Engines amid Tests on Hypersonic Missiles Sergey Kohl / Shutterstock.com The aerospace giant will also supply spare engines and offer long-term services support as part of the contract. Delta Airlines set ...

GE Aerospace (NYSE:GE) will release earnings for the fourth quarter before the opening bell on Thursday, Jan. 22.Analysts expect the company to report fourth-quarter earnings of $1.43 per share. That's up from $1.32 per share in the year-ago period. The consensus estimate for GE Aerospace’s quarterly revenue is $11.21 billion (it reported $9.88 billion last year), according to Benzinga Pro.On Jan. 13, GE Aerospace announced that Delta Air Lines (NYSE:DAL) has selected GEnx engines to power 30 new Boeing 787 ...

GE Aerospace (NYSE:GE) will release earnings for the fourth quarter before the opening bell on Thursday, Jan. 22.Analysts expect the company to report fourth-quarter earnings of $1.43 per share. That's up from $1.32 per share in the year-ago period. The consensus estimate for GE Aerospace’s quarterly revenue is $11.21 billion (it reported $9.88 billion last year), according to Benzinga Pro.On Jan. 13, GE Aerospace announced that Delta Air Lines (NYSE:DAL) has selected GEnx engines to power 30 new Boeing 787 ...

Core Insights - Delta Air Lines reported strong fourth-quarter 2025 results, driven by diversified revenue streams, solid international travel demand, and corporate sales growth [2][10] - The company achieved earnings of $1.55 per share, surpassing estimates, despite a year-over-year decline due to high labor costs [3][10] - Revenue for the quarter reached $16 billion, exceeding expectations and reflecting a 2.9% year-over-year increase [4][10] Financial Performance - Earnings per share (EPS) for Q4 2025 was $1.55, beating the Zacks Consensus Estimate of $1.53, but down 16.22% year-over-year due to increased labor costs [3] - Total revenues were $16 billion, surpassing the Zacks Consensus Estimate of $15.63 billion, with adjusted operating revenues at $14.6 billion, a 1.2% increase year-over-year [4] - The company maintained a strong earnings surprise record, exceeding estimates in the past four quarters with an average surprise of 7.94% [5] Fleet Expansion - Delta Air Lines has agreed to acquire 30 Boeing 787-10 widebody aircraft, with options for an additional 30, expected to enhance long-haul capabilities starting in 2031 [6][7] - This acquisition is part of Delta's international growth strategy, aimed at strengthening its global footprint and supporting overseas expansion [7] Cost Structure and Challenges - Total operating expenses rose 5% year-over-year to $14.5 billion, driven by inflationary pressures despite lower fuel and maintenance costs [14] - Salaries and related costs increased 11% year-over-year to $4.59 billion due to a new pilot contract ratified in 2023 [14] - Non-fuel unit costs (CASM-Ex) increased by 4% year-over-year to 14.27 cents, indicating ongoing cost pressures [15] Valuation Concerns - Delta Air Lines' stock is considered unattractive from a valuation perspective, with a forward 12-month price-to-sales ratio of 0.70X, higher than the industry average of 0.59X [16] Investment Outlook - While Delta Air Lines delivered impressive results, potential investors are advised to exercise caution due to ongoing challenges and monitor the company's progress for a more favorable entry point [19]

Core Insights - Delta Air Lines (DAL) reported fourth-quarter 2025 earnings of $1.55 per share, exceeding the Zacks Consensus Estimate of $1.53, but reflecting a 16.22% year-over-year decline due to high labor costs [1] - Revenues for the quarter reached $16 billion, surpassing the Zacks Consensus Estimate of $15.63 billion, and showing a 2.9% increase year-over-year [2] Financial Performance - Adjusted operating revenues (excluding third-party refinery sales) increased 1.2% year-over-year to $14.6 billion, impacted by approximately 2 points due to the government shutdown [2] - Passenger revenues, which constituted 80.7% of total revenues, rose 1% year-over-year to $12.91 billion, with domestic passenger revenues remaining flat due to the government shutdown [5] - Cargo revenues decreased by 1% year-over-year to $246 million, while other revenues increased by 14% to $2.84 billion [6] - Adjusted operating margin was 10.1% in Q4 2025, down from 12% a year ago [6] Operational Metrics - Revenue passenger miles decreased by 1% to 59.86 billion, while capacity expanded by 1.3% to 72.9 billion [7] - Load factor decreased by 200 basis points to 82%, slightly below the estimate of 84% [7] - Total operating expenses rose by 5% to $14.5 billion, with salaries and related costs increasing by 11% to $4.6 billion due to higher wages from a new pilot contract [8] Fleet and Growth Strategy - Delta has agreed to acquire 30 Boeing 787-10 widebody aircraft, with options for an additional 30, expected to enhance fuel efficiency and long-haul capabilities [3][4] - The order is part of Delta's international growth strategy, aimed at strengthening its global footprint [4] Cash Flow and Debt - At the end of Q4 2025, Delta had cash and cash equivalents of $4.3 billion, up from $3.07 billion at the end of Q4 2024 [9] - Adjusted net debt decreased by $3.7 billion to $14.3 billion [9] - Adjusted operating cash flow for the December quarter was $2.2 billion, with free cash flow of $1.8 billion [10] Future Guidance - For Q1 2026, Delta expects adjusted earnings per share in the range of $0.50 to $0.90, with an adjusted operating margin of 4.5% to 6% [11] - Full-year earnings guidance for 2026 is projected between $6.5 and $7.5 per share, indicating a 20% year-over-year growth [12]

CINCINNATI, Jan. 13, 2026 /PRNewswire/ -- GE Aerospace (NYSE:GE) announced today that Delta Air Lines (NYSE: DAL) has selected GEnx engines to power 30 new Boeing 787-10s with options for 30 more aircraft. The agreement also includes spare engines and long-term services support. GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. said, "For more than 60 years, GE Aerospace has been proud to partner with Delta Air Lines, and we're honored the GEnx now will be underwing to support their international growth ...

Financial Data and Key Metrics Changes - Revenue for the third quarter was $11.3 billion, up 26% year-over-year, with operating profit also increasing by 26% to $2.3 billion [15][20] - Earnings per share (EPS) grew 44% to $1.66, driven by increased operating profit, a lower tax rate, and a reduced share count [15][22] - Free cash flow reached $2.4 billion, up 30%, with over 130% conversion from earnings [15][22] Business Line Data and Key Metrics Changes - In Commercial Engines and Services (CES), orders were up 5%, with services orders increasing by 32% while equipment orders decreased by 42% due to timing [17][18] - CES revenue grew 27%, with services revenue up 28% and internal shop visit revenue up 33% [17][18] - In Defense and Propulsion Technologies (DPT), revenue grew 26%, with defense engine volume up 83% year-over-year [20][23] Market Data and Key Metrics Changes - Year-to-date, orders increased by 13%, with services orders up 31% [4] - The total DPT backlog is at $19 billion, up $1.5 billion year-over-year [20] - The company expects to grow LEAP deliveries more than 20% for the full year, up from a prior outlook of 15% to 20% [7][22] Company Strategy and Development Direction - The company is focused on enhancing its FlightDeck operating model to improve delivery and meet customer demand [3][5] - Investments in LEAP durability and next-generation technologies are prioritized to deliver value to customers [9][12] - The company is committed to maintaining competitive advantages through a strong backlog and continuous improvement in services and products [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment and the ability to meet customer expectations [4][9] - The company raised its full-year guidance for revenue growth to high teens, up from mid-teens, reflecting strong year-to-date performance [20][22] - Management highlighted the importance of ongoing investments in technology and supply chain improvements to support future growth [9][24] Other Important Information - The company is investing nearly $1 billion in its supply chain to expand capacity [9] - The LEAP 1A HPT blade is now in production, expected to enhance output significantly [7][12] - The company has secured significant commitments from major airlines, including Korean Air and Cathay Pacific, for its engines [13][14] Q&A Session Summary Question: Can you elaborate on the services performance and factors influencing it? - Management noted that strong services performance was driven by improved material availability and increased work scopes, with expectations for continued growth [29][30] Question: What gives confidence in the LEAP services margin outlook? - Management highlighted ongoing improvements in supply chain and operational performance, projecting continued growth in internal shop visits and external channel performance [35][41] Question: How is capital deployment being balanced with share repurchase and potential M&A? - Management confirmed a balanced approach to capital allocation, prioritizing reinvestment in the business while also returning capital to shareholders and considering strategic M&A opportunities [44][48] Question: What is driving the strong aftermarket revenue growth despite deceleration in ASK growth? - Management attributed the growth to pent-up demand for shop visits and increased work scopes, alongside a growing external LEAP channel [90][91]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $11.3 billion, up 26% year-over-year, with operating profit also increasing by 26% to $2.3 billion [15][20] - Earnings per share (EPS) grew by 44% to $1.66, driven by increased operating profit, a lower tax rate, and a reduced share count [15][21] - Free cash flow reached $2.4 billion, up 30%, with over 130% conversion from earnings [15][21] Business Line Data and Key Metrics Changes - In Commercial Engines and Services (CES), orders were up 5%, with services orders increasing by 32% while equipment orders decreased by 42% due to timing [17][20] - CES revenue grew by 27%, with services revenue up 28% and internal shop visit revenue up 33% [17][20] - In Defense and Propulsion Technologies (DPT), revenue grew by 26%, with defense engine volume up 83% year-over-year [20][21] Market Data and Key Metrics Changes - Year-to-date, total orders increased by 13%, with services orders up 31% [4] - The total DPT backlog reached $19 billion, up $1.5 billion year-over-year [20] - The company expects revenue growth in the high teens for the full year, up from a prior outlook of mid-teens [21] Company Strategy and Development Direction - The company is focused on its FLIGHT DECK operating model to enhance delivery and operational efficiency [3][4] - Investments in LEAP durability and next-generation technologies are prioritized to meet customer demands and improve product reliability [10][12] - The company is committed to maintaining competitive advantages through continuous improvement in services and products [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment and the ability to meet customer expectations through improved operational performance [4][5] - The company raised its full-year guidance across the board, reflecting strong year-to-date performance and expectations for continued growth [21][22] - Management highlighted the importance of collaboration with suppliers to enhance material availability and production capacity [6][9] Other Important Information - The company is investing nearly $1 billion in its supply chain to expand capacity [9] - The LEAP-1A durability kit is in production, expected to drive significant improvements in engine performance [77] - The company has secured significant commitments from major airlines, enhancing its backlog and market position [13][14] Q&A Session Summary Question: Services performance and factors driving growth - Management noted that strong services performance was driven by improved material availability and increased work scopes, with expectations for continued growth into 2026 [29][30] Question: LEAP services margin outlook - Management expressed confidence in achieving targeted LEAP services margins by 2028, citing operational improvements and cost reductions [35][41] Question: Capital deployment and share repurchase strategy - Management confirmed a balanced approach to capital allocation, focusing on reinvestment in the business while also returning capital to shareholders [45][48] Question: Spare parts performance and drivers of growth - Management highlighted pent-up demand and increased work scopes as key drivers of spare parts growth, with expectations for continued strong performance [53][56] Question: 2026 revenue growth outlook - Management indicated optimism for 2026, expecting solid revenue growth driven by a growing installed base and increased shop visit demand [61][64] Question: Defense business and R&D insights - Management discussed leveraging commercial experience to enhance defense operations, focusing on next-gen platforms and improving service models [71][72] Question: Durability of new LEAP-1A blade - Management reported positive initial performance of the LEAP-1A durability kit, with a multi-year rollout plan for the installed base [76][78] Question: Supply chain material availability improvements - Management attributed improvements to consistent efforts over the past 18 months, emphasizing collaboration with suppliers to address constraints [84][86] Question: Commercial aftermarket revenue growth - Management explained that pent-up demand and increased work scopes are driving aftermarket revenue growth, which is expected to continue [91][92]

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]

Group 1 - GE Aerospace is set to release its first-quarter earnings results on April 22, with expected earnings of $1.27 per share, an increase from $0.82 per share in the same period last year [1] - The projected quarterly revenue for GE Aerospace is $9.05 billion, down from $15.17 billion a year earlier [1] - GE Aerospace shares experienced a decline of 1.9%, closing at $178.35 [2] Group 2 - On April 8, GE Aerospace and MTU Maintenance entered into an agreement to service GEnx engines at an expanded facility in Fort Worth [2] - Analysts have provided various ratings and price targets for GE Aerospace, with Wells Fargo raising its target from $203 to $212 [6] - Citigroup reduced its price target from $235 to $227 while maintaining a Buy rating [6]