GE Aerospace (GE) Bernstein 42nd Annual Strategic Decisions Conference summary

Business overview and strategy

• $42 billion in revenue last year, with 70% from services supporting an 80,000-engine installed base across commercial and defense sectors.

• $210 billion backlog, $170 billion in commercial services, positioning for long-term growth and shareholder returns.

• Strategy focuses on current operations, ramping production, and investing in future technologies for both commercial and defense markets.

• FLIGHT DECK lean operating model drives operational, financial, and cultural improvements, enabling 40% YoY growth in commercial service revenue and engine deliveries in Q1.

• Daily focus on safety, quality, delivery, and cost, with deep collaboration across the supply chain to unlock capacity and improve cycle times.

Market trends and operational performance

• Decline in parked aircraft signals no imminent wave of retirements, supporting ongoing demand.

• Spare parts orders grew from 30% to 40% in the last 60 days, with continued growth in engines being removed for maintenance.

• 2.3 billion flight hours of experience and $3 billion annual R&D investment underpin seven new engine platforms in 20 years.

• CFM56 remains a critical, young fleet with stable shop visit volumes through 2028; LEAP installed base expected to double by 2030, driving 25% annual shop visit growth.

• Wide-body engines hold 55% of commercial departures, with GEnx as the fastest-growing platform and high-single digit shop visit growth expected.

Financial outlook and growth projections

• Commercial services business on track for double-digit top-line growth over the medium term, with mid-teens growth expected this year.

• Strong 2026 outlook, with growth in 2027 anticipated to align with medium-term projections.

• Defense business at $12 billion, powering 2/3 of U.S. and allied fleets, with 30% international exposure and high-single digit growth expected.

• FLIGHT DECK model enhances productivity and output across both commercial and defense segments.

• Investor value proposition centers on a large installed base, high operational reliability, and sustained R&D investment.