GE Aerospace Climbs 46% in 2025 Amid Strong Aerospace Demand and Tariff Strategy

GE Aerospace's stock has climbed 46% YTD, driven by robust aerospace demand, operational efficiency gains, and tariff-driven pricing strategies. The company announced a multi-year service agreement with China Airlines and reaffirmed its full-year 2025 guidance. Investors are optimistic about continued growth in service revenue and pricing momentum ahead of the company's second-quarter earnings report.

GE Aerospace Inc. (GE) has experienced a significant stock performance boost this year, climbing over 46% year-to-date. The robust growth can be attributed to several factors, including strong aerospace demand, operational efficiency gains, and tariff-driven pricing strategies. The company's stock is currently trading near $244, well above its 50-day moving average of around $235, and approaching its 52-week high of $260.55 [1].

A key development contributing to this performance was the announcement of a multi-year service, repair, and overhaul (MRO) agreement with China Airlines. This agreement covers GE9X engines for China Airlines' 14 Boeing 777X aircraft, reinforcing a partnership that dates back to 1999. The GE9X engine, known for its 10% better fuel efficiency than its predecessor and full compatibility with Sustainable Aviation Fuel (SAF), has been a significant driver of the company's growth [3].

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. The company reaffirmed its full-year 2025 guidance, forecasting low double-digit revenue growth and EPS between $5.10 and $5.45 [1].

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 [1].

For broader exposure to the sector, investors may consider the iShares U.S. Aerospace & Defense ETF (ITA) and Gabelli Commercial Aerospace & Defense ETF (GCAD) [1].

References:
[1] https://www.benzinga.com/trading-ideas/movers/25/07/46299701/ge-aerospace-climbs-46-in-2025-as-investors-eye-tariff-strategy-earnings
[3] https://www.marketscreener.com/quote/stock/GE-AEROSPACE-4823/news/GE-Aerospace-China-Airlines-Signs-Multi-Year-Service-Agreement-with-GE-Aerospace-for-GE9X-Engines-50448805/