Core Viewpoint - GE Aerospace CEO Larry Culp defended the jet-engine industry's pricing practices in response to complaints from the airline industry regarding high maintenance costs and engine shortages impacting their operations [1] Group 1: Industry Pricing Practices - The jet-engine industry faces criticism from airlines over rising maintenance costs, which are perceived as excessive [1] - Culp emphasized that pricing practices are necessary to ensure the sustainability and innovation within the jet-engine sector [1] Group 2: Impact on Airlines - Airlines are experiencing strain due to engine shortages, which are exacerbating operational challenges and increasing costs [1] - The ongoing issues with maintenance and engine availability are leading to heightened concerns among airline operators [1]

Financial Data and Key Metrics Changes - In Q4 2025, orders increased by 74%, revenue grew by 20%, and EPS rose by 19% to $1.57, with free cash flow up 15% [5][17] - For the full year, orders were up 32%, revenue increased by 21%, operating profit grew by $1.8 billion, and free cash flow rose by $1.5 billion [5][18] - Operating profit for the year was $9.1 billion, with margins expanding by 70 basis points to 21.4% [18] Business Line Data and Key Metrics Changes - In the Commercial Engine Services (CES) segment, orders were up 35%, revenue grew by 24%, and profit increased by 26% to $8.9 billion [5][19] - In the Defense and Power Technologies (DPT) segment, orders increased by 19%, revenue grew by 11%, and profit rose by 22% to $1.3 billion [5][20] Market Data and Key Metrics Changes - The backlog reached approximately $190 billion, up nearly $20 billion from the previous year [6] - The installed base of LEAP engines is expected to triple between 2024 and 2030, with significant capacity expansions planned across the global MRO network [10][11] Company Strategy and Development Direction - The company aims for substantial revenue, EPS, and cash growth in 2026, with expectations for revenue to increase in the low double digits [6][24] - Investments are being made in U.S. manufacturing to support both commercial and defense customers, with a focus on improving time on wing and reducing cost of ownership [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand environment, citing robust orders and a strong backlog as indicators of future growth [30][31] - The company is focused on leveraging its extensive installed base and R&D investments to drive continuous improvement and customer value [26][72] Other Important Information - The company is transitioning its segment reporting to reflect organizational changes, with no impact on total company metrics [22] - A significant portion of R&D spending is directed towards improving customer experience and developing next-generation technologies [71] Q&A Session Summary Question: Can you elaborate on the commercial aftermarket backdrop? - Management noted that there are no concerns about demand momentum continuing into 2026, supported by a strong backlog and expected growth in shop visits and spare parts [30][31] Question: What is the status of LEAP profitability? - Management confirmed that LEAP original equipment is expected to be profitable in 2026, aligning with previous plans [41] Question: How are turnaround times improving for mature engines? - Improvements in turnaround times are driven by better material availability and efficient execution on the shop floor, leading to increased productivity [44] Question: What are the expected losses from the GE9X program? - Losses for the GE9X program were around a couple of hundred million in 2025, with expectations for these losses to double in 2026 [48] Question: How is R&D spending allocated? - R&D spending focuses on enhancing customer experience, developing new technologies, and supporting next-generation defense programs [71]

Financial Data and Key Metrics Changes - In Q4 2025, orders increased by 74%, revenue grew by 20%, and EPS rose by 19% to $1.57, with free cash flow up 15% [4][14] - For the full year, orders were up 32%, revenue increased by 21%, operating profit grew by $1.8 billion, and free cash flow rose by $1.5 billion [4][15] - Operating profit for Q4 was $2.3 billion, up 14%, while for the full year, it reached $9.1 billion, a 25% increase [14][15] Business Line Data and Key Metrics Changes - In the Commercial Engines Services (CES) segment, orders were up 76% in Q4, with revenue increasing by 24% and services revenue up 31% [15][16] - In the Defense and Power Technologies (DPT) segment, orders increased by 61%, with revenue growing by 13% [17] - CES profit grew by 5% to $2.3 billion, while DPT profit was $1.3 billion, with margins up 110 basis points to 12.3% [16][18] Market Data and Key Metrics Changes - The backlog increased to approximately $190 billion, up nearly $20 billion from the previous year [5] - The installed base of LEAP engines is expected to triple between 2024 and 2030, driving aftermarket demand [9] - The defense book-to-bill ratio was above 2, indicating strong demand in the defense sector [17] Company Strategy and Development Direction - The company is focused on enhancing customer experience and operational efficiency through the integration of technology and operations [7][24] - Investments of approximately $500 million are being allocated to expand MRO capacity, particularly for LEAP engines [9] - The company aims for mid-teens revenue growth in 2026, with a focus on both commercial and defense sectors [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in robust demand for 2026, supported by a strong backlog and favorable market conditions [25][27] - The company anticipates generating $8-$8.4 billion in free cash flow in 2026, with conversion rates remaining above 100% [6][22] - Management highlighted the importance of continuous improvement and innovation to maintain competitive advantages in the industry [24][49] Other Important Information - The company is transitioning its segment reporting to better align with organizational changes, impacting revenue and profit allocations [20] - R&D spending remains a priority, with approximately $3 billion allocated annually to drive innovation and improve product offerings [48] Q&A Session Summary Question: Can you elaborate on the commercial aftermarket backdrop? - Management noted strong momentum in the aftermarket, with expectations for mid-teens services growth in 2026, driven by increased work scopes and pricing [25][27] Question: What is the profitability outlook for LEAP engines? - Management confirmed that LEAP original equipment is expected to be profitable in 2026, with improvements in supply chain visibility and readiness [30][32] Question: How are turnaround times improving across engine platforms? - Improvements in turnaround times are attributed to better material availability and efficient execution of standard work on the shop floor [34] Question: What are the expected losses from the GE9X program? - Losses for the GE9X program are expected to double year-over-year in 2026, consistent with prior guidance [36] Question: How is the company managing R&D investments? - R&D investments are focused on enhancing customer experience and developing next-generation technologies, with a commitment to maintaining spending levels [48][49]

Investment Rating - The report maintains a recommendation for the commercial aviation engine industry, indicating a positive investment outlook [1]. Core Insights - The commercial aviation engine is referred to as the "crown jewel" of modern industry, with engines accounting for approximately 25% of the total value of commercial aircraft [4][20]. - The report emphasizes the significant growth potential of China's commercial aviation engine market, projecting a total market size exceeding 2.6 trillion yuan over the next 20 years, with an annualized scale of over 130 billion yuan [5][11]. - The commercial aviation engine supply chain is characterized by high barriers to entry, with a global oligopoly dominated by a few major manufacturers [5][6]. Summary by Sections Industry Overview - The report introduces the commercial aviation engine as a critical component of modern industrial capabilities, highlighting China's reliance on imported engines and the low marketization rate of domestic engines, which is less than 1% [4][21]. Commercial Aviation Engine Analysis - The structure of commercial aviation engines includes key components such as fans, compressors, combustion chambers, and turbines, with the hot section being the most critical and challenging to manufacture [26][33]. - The aftermarket services for engines can generate revenues up to four times the initial sale price, indicating a lucrative long-term profit potential [4][18]. Business Model Exploration - The primary manufacturers operate under a "super blade + long-term blade" profit model, leveraging significant discounts on initial sales to capture market share while securing long-term service contracts for profitability [5][6]. - Suppliers in the engine manufacturing chain are positioned as "hidden champions," benefiting from high entry barriers and the need for extensive certification processes [5][6]. Global Valuation Perspective - The average price-to-earnings (PE) ratio for major engine manufacturers is reported at 30.2 times, with leading companies like GE Aerospace at 42 times, indicating robust valuation metrics driven by order backlog and aftermarket growth [5][6]. - Core suppliers exhibit an even higher average PE of 68.5 times, reflecting their scarcity and stable demand characteristics [5][6]. China's Commercial Aviation Engine Market - The report highlights the Longjiang series of engines as a key initiative to reduce reliance on foreign technology and enhance domestic capabilities [5][11]. - The projected growth of the Chinese aviation market is supported by forecasts indicating a compound annual growth rate (CAGR) of 4.4% from 2024 to 2044, with expectations of 10,175 aircraft by 2044 [5][11]. Investment Recommendations - The report suggests focusing on three key areas within the domestic aviation engine supply chain: core component suppliers, high-temperature alloy manufacturers, and raw material suppliers [5][11].

Market Overview - US stock index futures are all up, with Dow futures rising by 0.35%, S&P 500 futures up by 0.56%, and Nasdaq futures increasing by 0.83% [1] - European indices also show positive movement, with Germany's DAX up by 1.16%, UK's FTSE 100 up by 0.45%, France's CAC40 up by 1.19%, and the Euro Stoxx 50 up by 1.33% [2] Commodity Prices - WTI crude oil has decreased by 1.50%, trading at $59.71 per barrel, while Brent crude oil has fallen by 1.41%, priced at $64.32 per barrel [3] Economic Indicators - The market anticipates stable inflation pressures in the US for November, with a 95% probability that the Federal Reserve will maintain interest rates next week. The core PCE price index is expected to rise by 0.2% month-over-month and 2.8% year-over-year, indicating inflation levels significantly above the Fed's 2% target [4] Company News - GE Aerospace reported Q4 earnings that exceeded expectations, with adjusted EPS of $1.57, surpassing the forecast of $1.43, and adjusted revenue of $11.9 billion, exceeding the market expectation of $11.2 billion. The company projects adjusted EPS for 2026 to be between $7.10 and $7.40, indicating strong growth confidence [9] - Morgan Stanley and Allen & Company are set to earn $90 million from the Warner Bros. deal, with Morgan Stanley also profiting from a $17.5 billion bridge loan provided to Warner Bros. [10] - Anthropic PBC has raised at least $1 billion in its latest funding round, with its revenue run rate doubling since last summer to exceed $9 billion by the end of 2025 [11] - Intel has secured a significant contract with the US Missile Defense Agency for chip supply, with a maximum contract value of $151 billion, boosting investor confidence in the company's transformation plans [12] - Alibaba is preparing to spin off its chip company, Tsinghua Unigroup, for a potential IPO, reflecting strong investor interest in AI accelerators [12]

智通财经APP获悉，周四，全球最大喷气发动机制造商GE航空航天(GE.US)公布了超预期四季度业绩和 年度盈利展望，这显示出，强劲的航空旅行需求及高利润的售后零部件与服务业务，正持续驱动公司业 绩增长。 GE航空航天在财报中表示，预计2026全年调整后每股收益将在7.10至7.40美元之间，其中值高于分析师 平均预估的7.10美元。同时，公司预计调整后营收将实现低双位数百分比增长。 行业挑战 然而，发动机短缺及可靠性问题也在推高航空公司的运营成本，导致供应商与航空公司之间的摩擦加 剧，许多航空公司对价格上涨表示抵制。作为行业重要参与者，由GE航空航天与法国赛峰集团合资成 立的CFM International，近期已与全球航空公司续签协议，旨在保障发动机维修市场的竞争性。 第四季度业绩方面，该公司调整后每股收益达1.57美元，高于分析师预估的1.43美元;调整后营收为119 亿美元，也超过市场预期的112亿美元，当季订单激增74%。 受此消息提振，该公司股价盘前一度上涨近6%。过去12个月内，其股价已飙升近70%，表现远超同期 标普500指数。 售后市场与航空复苏提供核心动力 首席执行官Larry Culp在 ...

Core Insights - GE's stock initially rose in premarket trading following quarterly results that exceeded expectations across multiple metrics, indicating strong performance [1] - The company's full-year revenue growth outlook surpassed Wall Street's projections, suggesting positive momentum for future earnings [1] Financial Performance - Quarterly results showed that GE outperformed expectations in several key financial metrics, reflecting robust operational efficiency and market demand [1] - The full-year revenue growth forecast indicates a more optimistic outlook compared to analysts' estimates, which may enhance investor confidence [1]

January 22, 2026 GE Aerospace fourth quarter & full year 2025 performance Financial results & company highlights Caution concerning forward-looking statements: This document contains "forward-looking statements" – that is, statements related to future events that by their nature address matters that are, to different degrees, uncertain. For details on the uncertainties that may cause our actual future results to be materially different than those expressed in our forward-looking statements, see www.geaerosp ...

Core Insights - GE Aerospace reported an increase in revenue driven by a rise in orders, attributed to growing air travel and defense demand [1] Group 1: Revenue Growth - The company experienced higher revenue as a result of increased orders [1] - The growth in orders is linked to the rising demand in both the air travel and defense sectors [1]

格隆汇1月22日｜GE航天航空(GE.US)盘前涨超5%。消息面上，公司预计2026年调整后每股收益为7.10 至7.40美元，高于市场预期。 ...