New Engine Boosts US Missile Production
GE Aerospace, Kratos Win Air Force Contract to Develop Second JASSM Missile Engine
Key Points
GE Aerospace and Kratos began developing the GEK800 in 2023, combining internal investment with funding from the Air Force Research Laboratory to mature the design through a Technology Maturation and Risk Reduction phase before moving into full Engineering, Manufacturing and Development.
The current sole engine for JASSM, the Williams F107-WR-105, is being supplemented by a new pathway: the Pentagon awarded Williams about $253.7 million in December 2024 to expand production to support JASSM, LRASM and Tomahawk missiles.
Amy Gowder, president and CEO of GE Aerospace Defense & Systems, stated that the F143 designation and EMD award are a testament to the engine’s strong performance and the strength of the GE-Kratos partnership, reflecting years of disciplined engineering.
Market reaction to the milestone included a modest premarket pullback for GE Aerospace, but the stock’s longer-term trend remained constructive, with a June golden cross; analysts have issued price targets such as Bernstein at $421, JPMorgan at $400, RBC at $400, and an average target around $395.73.
GE Aerospace and Kratos Defense & Security Solutions have won a U.S. Air Force Engineering, Manufacturing and Development contract for their GEK800 turbofan engine, according to MarketScreener. The engine has been officially designated the F143-ZZ-100 and will serve as a second-source propulsion system for the Joint Air-to-Surface Standoff Missile, known as JASSM.
The deal marks a significant step toward breaking the JASSM program's reliance on a single engine supplier. It also signals a broader U.S. push to build more domestic manufacturing capacity for low-cost, rapidly producible jet engines for missiles and drones, according to Defence Industry.
GEK800 Engine Development Journey Since 2023
GE Aerospace and Kratos began developing the GEK800 in 2023. They combined their own funding with money from the Air Force Research Laboratory. The goal was to mature the design through a Technology Maturation and Risk Reduction phase before entering full development, according to Defence Industry.
The teams report more than 50 successful ground-test starts. They also completed altitude testing at Purdue University's Zucrow Laboratories in 2025. Amy Gowder, president and CEO of GE Aerospace Defense & Systems, said the F143 designation is "a testament to the engine's strong performance and the strength of the GE-Kratos partnership, reflecting years of disciplined engineering," according to Yahoo Finance.
JASSM Breaks Free From Its Single Engine Supplier
Until now, the JASSM program relied entirely on the Williams F107-WR-105 as its only engine. That made the supply chain fragile. The Pentagon moved to fix this in December 2024, awarding Williams about $253.7 million to expand production for JASSM, LRASM, and Tomahawk missiles, according to Yahoo Finance.
The new F143-ZZ-100 gives the Air Force a second option. A second source means more competition and lower costs over time. It also reduces the risk of production bottlenecks during a surge in demand for long-range missiles and unmanned systems, according to Defence Industry.
Drones and Missiles Drive the Reindustrialization Push
The F143 is designed for more than just JASSM. GE Aerospace and Kratos say it can power collaborative combat aircraft and other unmanned systems. The engine is built to be produced quickly and in large quantities — a key requirement as the military expands its drone and missile fleets, according to Investing.com.
The program reflects a wider U.S. effort to reindustrialize its defense base. The Air Force wants engines it can make fast and at scale. That means bringing more production back home and creating competition among suppliers to keep prices low, according to Defence Industry.
GE Aerospace Stock Dips Despite Long-Term Analyst Confidence
GE Aerospace shares slipped modestly in premarket trading after the announcement. Despite the short-term pullback, the stock's longer-term trend remained positive. Analysts noted a golden cross in June — a bullish technical signal — as a sign of underlying strength, according to Seeking Alpha.
Analyst price targets remain well above current levels. Bernstein set a target of $421. JPMorgan and RBC each placed targets at $400. The average analyst target sits around $395.73, reflecting broad confidence in GE Aerospace's defense business over the long run, according to Seeking Alpha.
Sentiment
Mostly PositivePublishers
13
Articles
23
Reach
36
