GE Aerospace’s (GE) shares traded in green on Thursday afternoon despite over 600 members of the United Auto Workers (UAW) union walking off the job in the aircraft engine designer’s Ohio and Kentucky sites. The stock rose about half a percentage point.
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The workers formed a picket line after a majority vote favored a strike action following failure to reach a new arrangement with the Ohio-based aircraft engine supplier on Wednesday, according to Reuters. UAW president Shawn Fain lamented the company’s proposed hike in employee health costs, calling it “insulting,” according to Yahoo! Finance.
Workers Lock Horns with GE Aerospace
Meanwhile, Fain also pointed to the billions of dollars the company generates in profit and CEO Lawrence Culp’s $88 million hefty compensation package in 2024. Officials told the news outlet that health insurance costs have climbed 36% since 2021.
The site in Evendale, Ohio, houses GE Aerospace’s facility for the manufacturing of marine and industrial engines, including those supplied to the U.S. Navy. On the other hand, the Erlanger site in Kentucky is where deliveries for GE’s engine plants are managed.
The protest comes amid a broader wave of workers’ discontent within the aerospace and aviation sectors over the last few years. Workers have been hammering for better pay and improved employment safeguards.
A spokesperson for GE Aerospace told Reuters that the strike began before it had the opportunity to vote on the workers’ offer. The official noted that the company had initiated a “detailed contingency plan” in reaction to the development.
Is the GE Stock Still a Good Buy?
In its Q2 2025 financial results released earlier in July, GE Aerospace reported a 21% year-on-year increase in revenue. The figure came in at $11.02 billion, beating analysts’ expectations of $9.59 billion.
That quarter’s numbers also trickled in with adjusted earnings of $1.66 per share, which soared by 38% year-over-year. The figure beat Wall Street’s estimated $1.43.
Earlier this month, investment research firm Bernstein assigned GE Aerospace’s stock an Outperform rating and boosted its price target for the shares from $254 to $343. Bernstein’s upgrade signaled stronger confidence in the American aircraft company’s commercial engines and service outlook.
On TipRanks, GE stock has a Strong Buy recommendation based on 12 Buy ratings by Wall Street analysts. The shares also have an average price target of $300.33, which is a 9.27% potential upswing from current levels.
