GE Aerospace Defense Unit Logs 11% Revenue Growth, Secures $5B F110 Contract
GE Aerospace's Defense & Propulsion Technologies unit posted an 11% revenue increase and a 19% order rise in 2025, driven by a $5B F110 engine contract with the U.S. Air Force and an IDIQ award for F-15/F-16 engines. The segment forecast mid-to-high single-digit revenue growth for 2026.
1. 2025 Segment Performance
In 2025, GE Aerospace’s Defense & Propulsion Technologies unit delivered an 11% year-over-year revenue increase and a 19% rise in new orders, driven by strong demand for propulsion systems, additive manufacturing and aftermarket services in the defense sector.
2. Major Contracts and Engine Tests
The unit secured a $5 billion Foreign Military Sales contract to supply F110 engines, parts and support to the U.S. Air Force, plus an IDIQ award from the U.S. Army for F110 engines on F-15 and F-16 jets. It successfully tested the T901 engine on a Black Hawk helicopter, completed the XA102 design review, and booked an order for 113 F404 engines with Hindustan Aeronautics.
3. 2026 Outlook and Valuation
For 2026, GE Aerospace expects mid-to-high single-digit revenue growth in its defense and propulsion segment. Shares have climbed 17.5% over the past six months, and the stock trades at a forward P/E of 41.6 times versus an industry average of 32.7 times, with consensus earnings estimates on the rise.
4. Peer Comparison
Competitors such as Howmet Aerospace saw defense revenues jump 20% in Q4 2025, while RTX Corporation maintains robust bookings and backlog levels. GE’s performance and growth outlook remain competitive within the defense aerospace market.