DOHA — GE Aerospace (NYSE: GE) and Qatar Airways have significantly deepened their partnership with a landmark order exceeding 400 engines, including 60 GE9X and 260 GEnx units, to power Boeing’s 777-9 and 787 fleets. Announced during U.S. President Donald Trump’s visit to Doha, this transaction represents the largest widebody engine order in GE Aerospace’s history, underscoring the company’s dominant role in the aerospace sector.
The comprehensive agreement covers not only the engine purchases but also extensive service contracts for maintenance, repair, and overhaul. This deal builds on Qatar Airways’ prior order of 188 GE9X engines—bringing their total commitment to 248 GE9X units—and adds 260 GEnx engines to their existing fleet of 124, reinforcing their focus on operational efficiency and fleet modernization.
GE Aerospace, boasting a market capitalization of $237.8 billion, currently trades near its 52-week high despite analysis from InvestingPro suggesting potential overvaluation relative to fair value. The company has delivered a robust 33.1% return year-to-date and an 8.82% revenue increase over the past twelve months, reflecting its strong market positioning.
Qatar Airways Group CEO Engr. Badr Mohammed Al-Meer praised the GE9X and GEnx engines for their reliability and efficiency, emphasizing their critical role in sustaining a cutting-edge fleet. GE Aerospace Chairman and CEO H. Lawrence Culp, Jr., acknowledged the trust placed by Qatar Airways in their advanced engine technology and highlighted the strategic importance of the deal.
The GE9X engine, exclusive to Boeing’s 777X series, is the most powerful commercial aircraft engine available and delivers a 10% fuel efficiency improvement over its predecessor, the GE90-115B. Meanwhile, the GEnx engine, launched in 2011, has amassed over 62 million flight hours and stands as GE’s fastest-selling high-thrust engine, powering two-thirds of all Boeing 787 aircraft worldwide.
Both engine models are certified to operate on Sustainable Aviation Fuel (SAF) blends, supporting the aviation industry’s shift towards greener, more sustainable operations. Beyond engine supply, GE Aerospace supports Qatar’s aviation ecosystem through On Wing Support services and local workforce training initiatives.
Financially, GE Aerospace maintains a solid profile, earning a “Good” overall health rating from InvestingPro’s comprehensive analysis. The partnership with Qatar Airways not only drives engine sales but also fuels growth in Qatar’s broader aviation sector, aligning with the airline’s ambitious expansion goals.
Recent company performance underscores this momentum: GE Aerospace reported strong first-quarter results with adjusted earnings per share of $1.49, exceeding estimates of $1.27. Revenues rose 11% year-over-year to $9.0 billion, while operating profit reached $2.15 billion—surpassing forecasts by 12%. Industry analysts have responded with upward revisions: BofA Securities raised its price target to $230, Bernstein to $254, and TD Cowen reaffirmed a Buy rating with a $200 target. RBC Capital Markets maintained an Outperform rating with a $220 target, citing the company’s strong free cash flow and share repurchase strategy.
Despite facing potential $500 million tariff headwinds, GE Aerospace remains confident in offsetting these through strategic cost management and pricing initiatives. With continued aftermarket growth and supply chain enhancements, GE Aerospace is well-positioned to sustain its leadership in the competitive commercial aerospace landscape.
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