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    Does GE's New Air Force Missile Engine Deal Reshape the Bull Case for General Electric (GE)?

    Simply Wall St·08/30/2026 02:25:22
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    • Earlier this month, Kratos Defense & Security Solutions and GE Aerospace announced that their GEK800 turbofan engine, now designated the F143-ZZ-100, secured a U.S. Air Force Engineering, Manufacturing and Development contract as a second-source propulsion system for the Joint Air-to-Surface Standoff Missile after completing extensive ground and altitude testing.
    • This contract underscores GE Aerospace’s expanding role in supplying small, high-performance engines for cruise missiles and uncrewed aerial systems, adding a new defense growth avenue alongside its commercial engine and services operations.
    • We’ll now examine how this new U.S. Air Force engine contract could influence GE’s investment narrative around defense and long-term cash generation.

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    General Electric Investment Narrative Recap

    To own GE today, you need to believe in its ability to compound cash flow from a focused aerospace franchise, driven by commercial engines, high‑margin services, and a growing defense footprint. The new F143 missile engine award is directionally positive for defense and cash generation, but it is not large enough on its own to change the near term story, which still hinges on commercial engine output, aftermarket resilience, and managing high debt costs.

    The most relevant recent development here is GE Aerospace’s strong defense momentum, reflected in a book to bill above 2x. That backdrop helps put the F143 contract in context as another piece in a broader defense pipeline that could support utilization of GE’s technology, partially offset the company’s reliance on commercial aviation cycles, and slightly diversify cash flows while supply chain and cost pressures remain a key execution risk.

    Yet beneath this progress, investors should still be aware of how GE’s high leverage could amplify any downturn in...

    Read the full narrative on General Electric (it's free!)

    General Electric's narrative projects $63.2 billion revenue and $11.7 billion earnings by 2029.

    Uncover how General Electric's forecasts yield a $404.90 fair value, a 18% upside to its current price.

    Exploring Other Perspectives

    GE 1-Year Stock Price Chart
    GE 1-Year Stock Price Chart

    Some of the lowest ranked analysts were already cautious, expecting revenue of about US$60.8 billion and earnings of roughly US$10.8 billion by 2029, and this new Air Force engine contract comes against that more pessimistic backdrop of potential decarbonization, alternative propulsion risks, and debate over how durable GE’s cash flows really are.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.