GE Aerospace Climbs 46% In 2025 As Investors Eye Tariff Strategy, Earnings

Zinger Key Points

GE Aerospace Inc. GE has maintained strong stock performance in recent months, driven by robust aerospace demand and operational efficiency gains. Expanding margins, solid order volumes, and tariff-driven pricing strategies have all contributed to investor optimism.

The stock has climbed over 46% year to date. It is currently trading near $244, well above its 50-day moving average of around $235, and approaching its 52-week high of $260.55.

On July 7, GE Aerospace announced a multi-year service, repair, and overhaul (MRO) agreement with China Airlines covering GE9X engines for its 14 Boeing 777X aircraft. The deal reinforces a partnership that dates back to 1999, when China Airlines began operating GE90 and GEnx-powered fleets. The GE9X engine is noted for delivering 10% better fuel efficiency than its predecessor and is fully compatible with sustainable aviation fuel (SAF).

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CEO Larry Culp stated in early June that GE Aerospace would pass along approximately $500 million in tariff-related costs to customers. The move reflects the company’s effort to maintain margin stability amid trade-related cost pressures.

In the first quarter of 2025, GE Aerospace reported strong results, with revenue rising 11% year over year to $9.94 billion. Adjusted earnings per share jumped 60% to $1.49, beating the consensus estimate of $1.26. Operating margins also expanded significantly.

The company reaffirmed its full-year 2025 guidance, forecasting low double-digit revenue growth and EPS between $5.10 and $5.45, compared to a consensus estimate of $6.135.

The market is looking ahead to GE Aerospace’s second-quarter earnings, with analysts anticipating continued growth in service revenue and further pricing momentum tied to tariff pass-throughs.

In June, RBC Capital reiterated its Outperform rating on GE Aerospace and raised its price forecast to $275. Meanwhile, options market data pointed to strong institutional activity ahead of the company’s second-quarter earnings report.

For broader exposure to the sector, investors may consider the iShares U.S. Aerospace & Defense ETF ITA, and Gabelli Commercial Aerospace & Defense ETF GCAD.

Price Action: GE shares are trading lower by 1.34% to $245.12 at last check on Tuesday.

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