GE Aerospace has secured a contract from the U.S. Air Force for its GE426 engine, marking a significant step in the company's push into the market for propulsion systems designed for autonomous combat aircraft. The deal funds a preliminary design review, an early technical milestone before more expensive prototyping and testing phases.
The contract is part of the Air Force's medium-thrust Autonomous Collaborative Platform program, which aims to develop engines for uncrewed aircraft that will operate alongside crewed fighters. The value of the award was not disclosed, and the company did not provide details on future funding.
GE shares rose 2.8% to $311.41 in New York trading on Tuesday. Honeywell and Kratos also saw gains of 1.8% each, reflecting broader market interest in the drone engine sector.
The Air Force has been pursuing a multi-vendor strategy to avoid reliance on a single supplier. In February, it split engine work among Beehive Industries, Honeywell, Pratt & Whitney, and a GE-Kratos partnership. The service has emphasized the need for competition to ensure cost-effective and reliable propulsion for future Collaborative Combat Aircraft (CCA) programs.
CCA refers to uncrewed aircraft designed to work alongside piloted fighters, providing additional sensors, weapons, or numbers at a lower cost than new manned jets. In 2024, the Air Force selected General Atomics and Anduril to deliver detailed designs and test aircraft for the first increment of the CCA program, according to Reuters.
Steve "Doogie" Russell, vice president and general manager of Edison Works at GE Aerospace, said the company demonstrated its ability to move rapidly "from concept to engine demonstration." The GE426 effort is focused on achieving "performance, affordability and readiness," he added. GE completed a concept design review for the engine in August 2025.
The GE426 is a larger engine compared to GE's other drone-engine projects. According to Aviation Week, it can support thrust levels ranging from 4,000 to 9,000 pounds, a key factor in determining aircraft weight capacity and speed.
GE and Kratos are also collaborating on the GEK800 and GEK1500 engines. In February, the companies announced a $12.4 million Air Force award for the GEK1500, a 1,500-pound-thrust jet engine intended for unmanned systems, CCAs, and missiles. Stacey Rock, who leads Kratos' Turbine Technologies division, said the program demonstrated the team's commitment to producing "high-performance, affordable, jet engines" with rapid production capabilities.
Honeywell, another competitor in the space, offers the SkyShot 1600 engine, which can deliver between 800 and 2,800 pounds of thrust and operate as either a turbojet or a turbofan. Dave Marinick, president of engines and power systems at Honeywell Aerospace Technologies, said "cost, speed and performance demands" are driving development in this segment.
The GE426 award is an early step and does not guarantee production. GE must prove the engine can meet cost, manufacturing, and schedule goals for the Air Force's planned aircraft purchases, in a competitive field with multiple vendors. While the near-term revenue impact is difficult to assess, the contract gives GE a named medium-thrust engine alongside its smaller GEK programs, establishing a presence in a market where propulsion decisions are becoming increasingly critical to platform development.
