TLDRs;
- GE Aerospace shares rise ahead of earnings despite Airbus engine delivery delays.
- Airbus warns Pratt & Whitney engines remain very late, supply risks continue.
- Investors largely unfazed as peers gain despite ongoing aerospace supply challenges.
- GE’s January 22 webcast expected to detail engines, output, and forecasts.
GE Aerospace (GE) ended Monday’s trading session up 0.8%, closing at $324.17, as investors positioned themselves ahead of the company’s upcoming fourth-quarter earnings report.
Wolfe Research lifted its price target on GE to $360 from $340 while maintaining an Outperform rating, reflecting optimism about the company’s growth prospects despite supply chain challenges. Citigroup, meanwhile, reduced its target slightly to $378 but held a Buy rating, signaling confidence in GE’s long-term trajectory.
The U.S. markets were closed on Monday, limiting broader market movements. Still, aerospace investors are keeping a close eye on engine deliveries and manufacturing output as GE heads into its earnings week.
Engine Delays Cloud Outlook
Airbus raised concerns about ongoing delays in engine deliveries from Pratt & Whitney, a subsidiary of RTX. According to Airbus’s outgoing commercial head Christian Scherer, engines for the A320neo family, Airbus’s flagship model, arrived “very, very late” in 2025, with delays now extending into 2026. The A320neo relies on two key engine families: Pratt & Whitney’s geared turbofan and the LEAP engines from the GE-Safran joint venture.
For GE, these supply issues are significant. Any shortfall in engine deliveries could delay aircraft assembly schedules and impact aftermarket revenue streams, which traditionally generate higher profit margins through maintenance, parts, and servicing. Traders are watching closely to see whether GE can meet the production targets set by Airbus and Boeing for 2026.
Market Reaction Mixed But Stable
Despite the latest warnings from Airbus, the broader market response has been relatively muted. RTX shares climbed 2.8% on Monday, while the S&P 500 and Dow Jones ended slightly higher. Analysts suggest that investors are taking a “wait-and-see” approach ahead of GE’s earnings webcast scheduled for January 22.
Airbus’s 2025 delivery numbers show some resilience, with 793 aircraft handed over, a 4% increase year-on-year, and 889 net orders secured. However, the company emphasized that supply chain disruptions, particularly for the A320-family program, remain a key concern. For engine manufacturers like GE, these numbers set expectations for new engine shipments and the size of the installed base that will generate future service revenue.
Upcoming Earnings and Key Dates
GE Aerospace plans to host its Q4 2025 earnings webcast on January 22 at 7:30 a.m. EST. Investors will look for updates on LEAP engine deliveries, service growth, factory output, and cash flow projections for 2026. Supply chain updates, labor availability, and parts production will likely dominate discussions, as any shortfalls could delay revenue recognition and reduce capacity utilization at factories and repair shops.
Airlines also remain a critical variable. Delays in engine availability can disrupt airline operations and inflate costs, potentially pressuring margins or working capital. Traders and analysts will be monitoring these developments closely until the earnings release, as the interplay between engine supply and aircraft deliveries remains a central factor for GE Aerospace’s near-term stock performance.
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