Company Overview GE Aerospace operates as one of the world’s premier aircraft engine manufacturers, with technology powering three of every four commercial flights and two of three U.S. military combat aircraft and helicopters. Following its separation from General Electric in April 2024, the pure-play aerospace company has been aggressively investing in capacity expansion to meet surging demand for its flagship LEAP narrowbody engines.
What makes GE Aerospace particularly compelling right now is the timing of recent developments. On November 24, 2025, the company announced a nearly $53 million investment to expand its West Jefferson, North Carolina facility by over 35,000 square feet—a roughly 20% increase in building footprint—to boost capacity for critical LEAP engine components including rotating parts, blisks, high-pressure turbines and spools. This follows earlier announcements of over $1 billion in U.S. manufacturing investments for 2025, nearly doubling the previous year’s spend, as GE races to meet record order backlogs from Boeing and Airbus.
Key Technical and Fundamental Drivers
Recent Capacity Expansion → $53M West Jefferson Investment The November 24th announcement detailed a three-year, $53 million project that will create more than 40 new jobs and significantly expand production of the most critical parts used in CFM LEAP engines, which power Boeing 737 MAX and Airbus A320neo aircraft.
Defense Surge → 26% Revenue Growth, 75% Profit Jump Q3 2025 results showed the Defense & Propulsion Technologies segment with revenue jumping about 26% and profit rising 75% year-over-year, reinforcing GE’s position as a critical defense supplier particularly to the U.S. Navy.
Services High-Margin Growth → Long-Term Revenue Stream Because services carry higher margins than new-engine sales, recent investments in North Carolina, Wales, and Brazil support higher long-term recurring revenue, better customer stickiness through faster turn times, and improved operating leverage.
LEAP Engine Supercycle → Record Commercial Demand GE’s $1 billion U.S. manufacturing investment in 2025 targets the high-volume LEAP engine family powering the Boeing 737 MAX, Airbus A320neo, and Comac C919, addressing massive pent-up demand from airlines.
Strong 2025 Performance → 70%+ YTD Rally The stock has delivered spectacular performance with a 2025 year-to-date gain north of 70%, reflecting strong execution on both commercial and defense segments with robust free cash flow generation.
Market Takeaway GE Aerospace represents a rare combination of immediate catalysts and long-term structural growth. The commercial aerospace theme benefits from airlines keeping older planes in service longer due to supply constraints, driving increased spending on parts and maintenance that could benefit companies like GE Aerospace which makes and repairs aircraft engines. The November West Jefferson expansion announcement underscores management’s confidence in sustained demand, particularly as Boeing and Airbus work through record order backlogs that will take years to fulfill.
The dual revenue streams from commercial and defense create a balanced risk profile. While the stock’s 70%+ gain in 2025 might give some investors pause about valuation, the fundamental drivers remain intact: Q3 results and raised 2025 guidance show robust growth in both commercial and defense segments, with strong free cash flow and a deep, expanding backlog. With most analyst targets clustering in the $300-$340 range and the company executing on massive capacity expansions, GE Aerospace offers investors direct exposure to the multi-year aviation recovery and defense modernization cycle. The recent facility investments signal management’s conviction that the LEAP engine supercycle has years of runway ahead, making this industrial bellwether worth watching as we head into 2026.