DOHA - GE Aerospace (NYSE:GE) and Qatar Airways have expanded their partnership through the purchase of over 400 engines, including 60 GE9X and 260 GEnx units, to power Boeing 777-9 and Boeing 787 aircraft. This agreement, announced during U.S. President Donald J. Trump’s visit to Doha, marks the largest widebody engine order in the history of GE Aerospace. The deal comes as GE, a prominent player in the Aerospace & Defense industry with a market capitalization of $237.8 billion, trades near its 52-week high. According to InvestingPro analysis, the company currently appears overvalued relative to its Fair Value.
The deal not only includes the engines but also service agreements for their maintenance, repair, and overhaul. This builds on Qatar Airways’ previous order of 188 GE9X engines, raising the total to 248, and adds to their 124 GEnx engines, further committing to operational efficiency and performance. GE’s strong market position is reflected in its impressive 33.1% year-to-date return and 8.82% revenue growth over the last twelve months. Want deeper insights? InvestingPro offers 13 additional investment tips and comprehensive financial analysis for GE.
Qatar Airways Group CEO, Engr. Badr Mohammed Al-Meer, expressed confidence in the GE9X and GEnx engines, emphasizing their role in maintaining a modern and efficient fleet. GE Aerospace’s Chairman and CEO, H. Lawrence Culp, Jr., highlighted the trust Qatar Airways has placed in their technology and the significance of the deal.
The GE9X engine, exclusive to Boeing’s 777X family, is recognized as the most powerful commercial aircraft engine available and is noted for being 10% more fuel-efficient than its predecessor, the GE90-115B. The GEnx engine, introduced in 2011, has achieved over 62 million flight hours and is the fastest-selling high-thrust engine for GE Aerospace, powering two-thirds of all Boeing 787 aircraft in operation.
Both engine types are certified to operate on Sustainable Aviation Fuel (SAF) blends, aligning with the industry’s move towards more environmentally friendly practices. GE Aerospace also contributes to Qatar’s aviation sector by providing On Wing Support and training local aviation professionals. The company maintains a healthy financial profile with a "Good" overall financial health score according to InvestingPro’s comprehensive analysis, which includes detailed metrics and expert insights available in the Pro Research Report.
The partnership between GE Aerospace and Qatar Airways extends beyond engine supply, as it plays a vital role in supporting Qatar’s aviation industry growth and the airline’s ambitious expansion plans. This agreement is based on a press release statement from GE Aerospace.
In other recent news, GE Aerospace has reported a strong first-quarter performance, with adjusted earnings per share reaching $1.49, surpassing the consensus estimate of $1.27. The company recorded an adjusted revenue of $9.0 billion, marking an 11% increase year-over-year, and an operating profit of $2.15 billion, exceeding forecasts by 12%. Analysts from BofA Securities and Bernstein have raised their price targets for GE Aerospace, citing the company’s robust market position and successful navigation of tariff challenges. BofA Securities increased the price target to $230, while Bernstein raised it to $254, both maintaining positive ratings on the stock.
TD Cowen analysts also reaffirmed a Buy rating with a $200 price target, highlighting the company’s successful start to its C25 initiative and significant aftermarket sales growth. Additionally, RBC Capital Markets maintained an Outperform rating with a $220 target, noting GE Aerospace’s strong free cash flow and share repurchase activities. The company has expressed confidence in mitigating a potential $500 million tariff impact through strategic cost reductions and pricing measures. These developments come amid GE Aerospace’s continued expansion in the commercial aftermarket and supply chain improvements, positioning the company favorably in the current economic landscape.
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