GE Aerospace (GE) Barclays 42nd Annual Industrial Select Conference summary

Opening remarks and company overview

• Emphasized commitment to safety and purpose in aviation, highlighting a global installed base of 70,000 engines and $35 billion in revenue, with 70% from aftermarket services.

• Operates in two segments: Commercial Engines and Services (CES) and Defense and Propulsion Technologies (DPT), both holding leadership positions in their markets.

• Celebrated milestones including becoming a standalone public company and the 50th anniversary of the CFM joint venture.

• Reported robust demand with orders up 38% and commercial services orders up 30% year-over-year.

• Achieved $1.7 billion in operating profit growth and returned over $6 billion to shareholders.

Strategic initiatives and operational focus

• Maintains a $150 billion service backlog, ensuring long-term engagement with customers.

• Secured over 4,600 new engine orders last year, supporting a busy production schedule through the decade.

• Invests in future technologies, notably the RISE program for sustainable engines targeting 2035-2040.

• Advanced military programs, including successful T901 ground tests and progress on the XA102 engine for next-generation combat.

• Expects low double-digit revenue growth and strong cash conversion in 2025, with free cash flow projected at $6.3–$6.8 billion.

Supply chain and operational improvements

• Achieved a 26% sequential improvement in supplier inputs, driven by the proprietary Flight Deck lean operating model.

• Launched a new Technology and Operations organization to integrate supply chain, engineering, and quality functions.

• Focuses on problem-solving at operational bottlenecks, aiming for continuous flow and linearity in production.

• Industry remains supply constrained, with efforts to serve both airlines and airframers effectively.