A：The purpose of GE Aerospace is to invent the future of flight, lift people up, and bring them home safely.

A：Flight Deck at GE is focused on using a lean operating model to turn strategy into results, and it is demonstrated through GE Aerospace's exceptional third quarter and year to date results. It is also focused on accelerating delivery of services and products to meet robust customer demand and ongoing investments in durability.

A：In the third quarter, GE Aerospace's revenue grew significantly, profit was $2.3 billion, up from the prior year, driven by strong deliveries across aftermarket, original equipment, and defense. This resulted in script growth in EPS to $1.66 and over 130% free cash flow conversion in commercial engines and services.

A：In the third quarter, GE Aerospace had solid growth in orders and revenue, with year to date orders up 13% and services up 31%. The company experienced revenue growth and profit improvement across all segments.

A：In GE Aerospace's supply chain, there have been improvements in problem solving and fulfillment of customer demand, leading to a 35% year-over-year increase in operating profit for Defense and Propulsion Technologies. The company has also been able to partner with suppliers to address constraints and improve output.

A：The updated forecast for Leap engine deliveries is more than a 25% growth for the full year, which is an improvement from the prior outlook of a 25% to 27% growth. Commercial units are expected to grow with record deliveries, and defense units are up 83% year over year.

A：GE Aerospace has made progress in reducing turnaround times and improving shop visit output, which are crucial priorities to meet customer demands. Improvements include a 30% reduction in engine disassembly time at the Malaysia MRO shop, a more than twofold increase in external shop visits, and an enhanced supply chain to support the growing number of engines.

A：Flight Deck is being utilized across GE's network to deliver a better customer experience by applying lessons learned. This has led to year to date commercial services revenue and total engine deliveries both being up 25%, positioning GE well for further ramp-up into 2026.

A：GE is continuously improving the reliability and durability of its products through insights gathered from 2.3 billion flight hours and $3 billion of annual R&D investment. Lessons learned from GE's Annex durability enhancements are being applied to Leap, and increased investments in analytics-based maintenance and repairs are aimed at reducing reliance on new materials, benefiting cost of ownership, and turnaround time.

A：The key wins announced in the current quarter include Korean Air's largest fleet commitment for Boeing aircraft powered by GE's GE9X and LEAP-EB engines, along with long-term services; and a commitment from Cathay Pacific for GE9X engines to power 779s, bringing their total commitment to 35 707 X's.

A：G Aerospace's revenue in the recent quarter was $11.3 billion, up 26%, with both segments growing over 25%. The operating profit was $2.3 billion, up 26% from the previous period.

A：The free cash flow for G Aerospace in the recent year was $2.4 billion, up 30% from higher earnings, with working capital and days sales outstanding declining year over year.

A：Commercial Services in G Aerospace experienced an order increase of 5%, with services up 32% and equipment down 42% due to timing of some white body and regional orders. Revenue grew 27% with services up 28%, and profit was $2.4 billion, up 35%, driven by higher volume, price, and a favorable mix of shop visit and spare parts sales.

A：In the recent quarter, the revenue for Defense and Propulsion grew 26%, with defense and systems revenue up 24% and propulsion and additive technologies growing 29%. The profit was $386 million, up 75% year over year, due to higher volume, improved pricing, and lower losses at additive technologies.

A：For the full year 2025, GE has raised its guidance. They expect revenue to grow in the high teens, with operating profit in a range of $8.65 to $8.85 billion. The guidance reflects the drop-through from a roughly $1 billion improvement in services revenue in the second half versus the prior guide and favorable services mix. Additionally, interest expense is expected to be approximately $850 million, and the tax rate of 17.5% will result in an EPS guidance of $6.00 to $6.20 per share.

A：The year-to-date services performance, which grew by 25%, was driven by improved material availability leading to higher volume and increasing work scopes. Demand remained strong, with Leap experiencing a 30% year-over-year growth in output. However, the growth stepped down in Q4 due to a seasonal step-down in revenue, primarily from spare parts, attributed to a lesser level of improvement in material availability and some seasonality in demand.

A：The strong Q3 results were attributable to a 22% year-to-date growth in shop visits, with improvements in material availability and work scope increases. Inductions outpacing output and strong demand for Leap parts were also contributing factors. Looking forward to 2028, the company is confident in the margin outlook for Leap services due to ongoing cost reductions, productivity improvements, and the introduction of the durability kit. The roadmap includes managing field performance, ensuring material availability, and continuing cost reductions, aligning with expectations and investors' and customers' confidence.

A：GE plans to maintain its current capital allocation approach, described as balanced, which has been in place since the spin-off. This approach is expected to persist for the foreseeable future. While the company is focused on share repurchases reflecting the belief in stock price and value, there is also a possibility of looking towards M&A activities in the near future.

A：The company's priorities include reinvesting in the business for technology improvements and supporting growth, returning capital to shareholders, and reserving capital for potential M&A opportunities. They are proud of having increased shareholder returns since the spin of what Forex and have returned cash to shareholders in the 24 to 26 period by 24 billion, up 20% from before the spin.

A：The investment in Beta Technologies is significant as it aligns with the company's focus on strategic fit, operational value adds, and financial returns. The collaboration with Beta Technologies on a hybrid electric turbo generator is expected to yield benefits in both defense applications and the commercial space.

A：The strong performance in spare parts sales is attributed to several factors including strong order growth, particularly from a significant increase in departures and pent-up demand from a lower number of worldwide shop visits compared to 2019. Additionally, the increase in work scopes, both internally and externally, contributed to the spare parts growth. Material availability and continued backlogs in demand, even with spare parts growth, are further factors driving this performance.

A：The company expects departure growth to remain around 3 to 4% in 2026. However, the number of engines that will come off the wing is projected to be up double digits. This difference between departure growth and spare parts demand is expected to continue for a while due to factors mentioned, including the departure growth forecast and the significant number of engines expected to come off the wing.

A：For 2026, the current thinking is that the commercial environment is better than a few months ago, with solid growth expected in the second half of departures. The demand and performance algorithm for the CES business remains the same, with all bases growing on the wide body and narrow body side. The company expects the services business to continue to outgrow the market, with revenue growth returning to double digits, normalization from not repeating the exceptional 2025 growth, and with new business and equipment growth factored in. Despite productivity challenges, revenue growth and profit growth are anticipated, supported by strong volume assumptions for the 9x and continued mid single-digit revenue growth for Bpt.

A：The company is in the process of finalizing the budget and will present the board with the details at the end of the year, with plans to discuss the budget in more detail during the upcoming earnings call.

A：The defense business has grown quite well, surpassing expectations, and the work on the hybrid electric turbo generator has implications for both defense and commercial applications, highlighting operational momentum and the potential for applying commercial lessons in the defense sector.

A：The recent achievements include the increase in defense engine output and the strength of the backlog, leading to revenue and script profit growth. This has been driven by the effective leveraging of commercial work and a shared supply base, improving performance across both the commercial and defense sectors.

A：The investment strategy is focused on next-generation platforms, specifically 6th generation propulsion and the GAAP program, with an eye toward opportunities with the Air Force and Navy. There is also a focus on upgrading existing platforms like Apaches and Blackhawks, indicating a balanced approach to fulfilling current backlog and exploring future opportunities.

A：The performance of the durability kit on the Leap 1A has been positive, with no surprises in terms of durability in harsh environments. The team is encouraged by the impact on durability and is looking forward to the certification process for the Leap 1B, expecting it to be completed in the first half of the following year. It is anticipated that this will be a multi-year effort to upgrade the installed base.

A：The company has seen consistent year-to-date improvements in supply chain material availability without any major breakthroughs. The improvements are attributed to a cumulative effect of addressing priority suppliers and anticipated bottlenecks, and getting involved in the factory floor to solve issues related to throughput and yields. The company aims to be proactive in problem-solving and invest in anticipating and preventing issues in the medium and long term.

A：The decoupling is attributed to the significant shop visit growth and increased work scopes, particularly on wide-body platforms, and the growth of the external shop channel. This growth is expected to result in substantial spare parts demand increases, along with the benefits from price increases. These factors have contributed to the acceleration of commercial aftermarket revenue growth.