Chinese Fighter Jet Maker AVIC Chengdu Aircraft Reports Record 2025 Results Amid Post-Conflict Sales Surge

Beijing, April 29, 2026 – AVIC Chengdu Aircraft, the manufacturer of the J-10 series fighter jets that gained international attention during the 2025 India-Pakistan conflict, announced record-breaking financial performance for 2025, with strong momentum carrying into the first quarter of 2026.
The company posted revenue of 75.4 billion yuan in 2025, marking a 15.8% increase from the previous year. Net profit reached 3.4 billion yuan, up 6.5%. In the first quarter of 2026, sales nearly doubled year-over-year, according to Bloomberg.
The surge is widely linked to the combat debut of Pakistan Air Force J-10C fighters during Operation Sindoor. India launched missile and drone strikes on terrorist infrastructure in Pakistan on May 7, triggering a four-day escalation involving airstrikes, drones, and artillery. Pakistan claimed its J-10C jets, equipped with PL-15 long-range air-to-air missiles, downed several Indian aircraft, including Rafales, a claim India disputed while acknowledging initial losses.
The reported performance of Chinese-origin platforms in the conflict triggered a sharp rally in Chinese defense stocks in May 2025. AVIC Chengdu-related shares surged as much as 60%+ at one point, fueled by nationalist sentiment and expectations of new export orders. Pakistan hailed the J-10C’s role, positioning the aircraft as a cost-effective alternative to Western fighters.
However, market enthusiasm proved short-lived. As tensions de-escalated following a ceasefire, shares reversed course. By mid-June 2025, they had fallen around 18% from peaks, with further declines extending into 2026. Recent trading shows the stock down over 25% year-to-date, hovering near lower levels with reports of negative profit margins on some listed entities, reflecting investor skepticism about sustained export growth beyond traditional partners like Pakistan.
Analysts note that while the conflict provided a high-profile “live demonstration” for the J-10C, translating battlefield claims into firm new contracts remains uncertain. Potential interest has been reported from countries in Asia and the Middle East, but major new deals have yet to materialize publicly. Domestic production priorities and broader Chinese defense industry trends also influence results.
AVIC Chengdu, a subsidiary of the state-owned Aviation Industry Corporation of China (AVIC), continues to benefit from Beijing’s push for military modernization. The J-10 family serves as a versatile multirole platform, and the 2025 events have elevated its global profile despite contested narratives around its combat effectiveness.
The strong 2025 earnings and Q1 2026 sales growth underscore how geopolitical flashpoints can deliver short-term commercial tailwinds to defense manufacturers, even as stock markets remain volatile and sensitive to conflict resolution.