Huge News for GE Aerospace Investors (and Why It's Already Boosting Earnings)

Core Insights - The aerospace industry's supply chain crisis is easing, positively impacting GE Aerospace's earnings and long-term profitability [1] - GE Aerospace has raised its full-year guidance for revenue, earnings, and free cash flow, driven by improvements in its commercial engines and services (CES) segment [1][2] Financial Guidance Summary - GE Aerospace's revenue growth expectations have improved from low double digits to high teens [3] - CES operating profit guidance has increased from $7.6-$7.9 billion to $8.45-$8.65 billion [3] - Total operating profit guidance has been raised from $7.8-$8.2 billion to $8.65-$8.85 billion [3] - Earnings per share (EPS) guidance has been adjusted from $5.10-$5.45 to $6.00-$6.20 [3] - Free cash flow expectations have increased from $6.3-$6.8 billion to $7.1-$7.3 billion [3] LEAP Engine Deliveries - Management has raised LEAP engine delivery growth expectations from 15%-20% to 20% for the year [4][5] - CFM International has already delivered 1,204 LEAP engines in the first nine months of the year, with 511 delivered in the third quarter [5] - Maintaining LEAP delivery pace is crucial for Boeing and Airbus to meet aircraft delivery schedules, which will also expand GE Aerospace's service revenue potential [6] Supply Chain Improvements - Improved material availability is a key factor driving higher volumes in CES revenue and LEAP engine deliveries [8][9] - The correlation between service revenue and flight departures is being enhanced by supply chain improvements, leading to increased engine shop visits [10] - The aerospace industry is overcoming previous supply chain challenges, positioning GE Aerospace for long-term growth [11][12]