Financial Data and Key Metrics Changes - For Q2 2025, the company reported revenue of $1.53 billion, a 13.5% increase from $1.35 billion in Q2 2024, with 11.5% of this growth being organic [19][20] - Adjusted EBITDA rose to $205 million, reflecting a 20% increase year-over-year, with adjusted EBITDA margins expanding by 80 basis points to 13.4% [20][29] - Net income increased significantly to $68 million from $5 million in the prior year, driven by higher sales and expanding margins [20] Business Line Data and Key Metrics Changes - Engine Services revenue increased by $139 million to $1.35 billion, representing 11.5% growth, driven by strong aftermarket activity and production ramp-up in commercial aerospace [21] - Component Repair Services revenue grew by 31% year-over-year to $178 million, with adjusted EBITDA increasing by 50% and margins expanding to a record 29% [23][24] Market Data and Key Metrics Changes - Commercial aerospace sales grew 14% year-over-year, with strong demand for engine aftermarket services [7] - Business aviation sales increased by 9%, driven by demand for midsize and super midsize business jets [8] - Military sales grew by 12%, supported by the AeroTurbine acquisition and growth in specific military programs [8] Company Strategy and Development Direction - The company is focused on expanding its LEAP program, enhancing CFM56 and CF34 capacity, and improving component repair services [10][17] - The company aims to maintain a disciplined approach to capital allocation, combining organic investments with strategic M&A opportunities [17][18] - The expansion of the Augusta facility is expected to add 60% capacity and create approximately 100 new jobs [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment and the company's ability to navigate supply chain challenges [31] - The company is increasing its 2025 revenue guidance to between $5.875 billion and $6.025 billion, reflecting continued strong demand across core end markets [28][30] - Adjusted EBITDA guidance has also been raised to a range of $790 million to $810 million, driven by better-than-expected margins [28] Other Important Information - The company expects free cash flow for 2025 to be in the range of $155 million to $175 million, with a strong cash conversion cycle anticipated in the second half of the year [25][30] - The company’s leverage improved to 2.99 times net debt to EBITDA, down from 5.4 times in 2024 [27] Q&A Session Summary Question: Thoughts on revenue cadence in Engine Services - Management confirmed that revenue growth expectations remain strong, particularly for the CF34 program, and expressed confidence in the second half guidance [38] Question: Margin dilution from new programs - Management indicated that margin expansion would have been greater without the ramp programs, but losses are narrowing significantly [41] Question: Growth dynamics for LEAP, CFM56, and CF34 - Management explained that LEAP is being carefully ramped up for precision, while CF34 is expected to see increased work due to aging engines [46][49] Question: Engine exchange program details - Management clarified that the engine exchange program involves a one-time investment and is designed to be self-funding over time [59][112] Question: Cash flow expectations for the second half - Management expects strong free cash flow driven by the unwinding of working capital and improved collections [100][102]

值得一提的是，这座工厂今年以来，运用GE航空航天精益管理"FLIGHT DECK"体系，开始探索新的生 产和工作组织模式——Flow（流动式生产）。这一模式旨在通过一系列的工序改进，将发动机维修过 程改进成一个单件流，即每个步骤只执行下一步骤的必需工作量，而非批量并行生产，从而能够进一步 提升效率。 OWS上海的相关负责人告诉记者，一般的快修厂用"固定位"（Maintenance Bay）模式，即发动机不 动，所有的人员和工装围绕着发动机进行工作，这样的优势是"集中力量办大事"，但OWS上海的快修 工厂投用以来，其需求成长非常迅速，导致很难随时为一个"固定位"配齐所有的生产要素。工厂团队因 此在全球业务负责人的支持下，尝试将快修工厂变成流水线，让发动机"动起来"，人员在各个节点进行 维修，发动机则在流水线上一步步拆分、又一步步组装，由此，以往"固定位"模式中、工作人员因工具 造成的等待基本没有了。 "举例来说，一般发动机快修要经过拆解、更换和维修单元体、组装三个步骤。但航空业供应链受到挑 战的大背景下之下，传统方式在'更换和维修单元体'环节就会出问题——发动机就只能留在固定工位 上，等待替海外换件。这不仅占用 ...

Financial Data and Key Metrics Changes - The company reported a strong second quarter with revenue exceeding $10 billion, up 23% year-over-year, and profit reaching $2.3 billion, an increase of 23% [44] - Orders were up 27%, with commercial engine services (CES) growing 30% and defense propulsion technologies (DPT) up 7% [44] - Free cash flow nearly doubled to $2.1 billion compared to the previous year [44] Business Line Data and Key Metrics Changes - CES services revenue increased by nearly 30% year-over-year, driven by internal shop visit revenue up more than 20% and spare parts revenue up over 25% [25] - DPT revenue grew 6%, with defense and systems up 6% and propulsion and additive technologies up 9% [48] - CES margins expanded by 50 basis points to 27.9%, while DPT margins declined by 20 basis points to 14.1% [47][48] Market Data and Key Metrics Changes - The company expects air traffic growth to outpace global GDP, particularly in Asia Pacific and the Middle East [16] - The commercial services backlog has increased to over $140 billion, supporting growth for years to come [16] - The defense sector is seeing solid momentum globally, with increased funding for key defense propulsion initiatives [18] Company Strategy and Development Direction - The company aims to ramp up services and equipment to support customer fleets while fulfilling strong demand for new engines [19] - Investments of over $1 billion are planned for MRO and component repair facilities over the next five years [23] - The company is focused on enhancing engine performance and expanding its supply chain and service networks [20] Management's Comments on Operating Environment and Future Outlook - Management raised the 2025 guidance across the board, expecting total revenue growth in the mid-teens, up from low double digits [49] - The outlook for 2028 has also been raised, with expectations for adjusted EPS reaching approximately $8.40 and operating profit around $11.5 billion [42] - Management expressed optimism about the company's trajectory, citing strong fundamentals and a robust order backlog [16][42] Other Important Information - The company is investing approximately $3 billion in R&D in 2025, which is 6-8% of revenue [29] - The company has a life of program win rate of 75% for GE9X engines, indicating strong demand [26] - The company is effectively sold out through the rest of the decade for commercial and defense engines [28] Q&A Session Summary Question: Can you reconcile the second half EBIT decline? - Management explained that while the second half EBIT is expected to be lower, the overall year is projected to see strong profit growth, with a better-than-expected second quarter contributing to raised revenue expectations [80][84] Question: What are the pricing assumptions for 2024-2028? - Management indicated that pricing is expected to offset inflation, with mid-single-digit pricing dynamics anticipated as the company moves beyond product launches [92][93] Question: What is the baseline for retirement rates? - Management acknowledged that retirements have been low but expect an increase as the fleet ages, with assumptions built around new aircraft deliveries and departure growth [95]

Financial Performance - GE Aerospace reported adjusted revenue of $102 billion, a 23% year-over-year increase in Q2 2025[54] - The company's operating profit reached $23 billion, also a 23% increase compared to the previous year[54] - Free cash flow surged to $21 billion, a significant 92% increase year-over-year[54] - Adjusted EPS increased by 38% year-over-year, reaching $166[54] - Orders increased by 27% year-over-year, totaling $142 billion[54] Guidance and Outlook - GE Aerospace is raising its 2025 adjusted revenue growth guidance to mid-teens, up from low double-digit[55] - The company expects its 2028 operating profit to reach approximately $115 billion, an increase of $15 billion from the prior outlook[57] - GE Aerospace anticipates a free cash flow of approximately $85 billion in 2028, also a $15 billion increase from the previous forecast[57] Commercial Engines & Services (CES) - Commercial Engines & Services reported a 29% year-over-year increase in services revenue for Q2 2025[32] - Equipment revenue for CES increased by 35% year-over-year[105] - The company expects double-digit revenue growth in commercial services[62] Defense & Propulsion Technologies (DPT) - Defense & Propulsion Technologies revenue increased by 7% year-over-year in Q2 2025[108] - The U S Air Force awarded a $5 billion contract for F110 engines[37]

Company Overview - GE Aerospace is a major industrial company in the United States with a market capitalization exceeding $193 billion, focusing on commercial and defense aircraft engines [2] - The company has undergone restructuring, resulting in a leaner and more profitable organization, benefiting from a robust order book [3] Business Performance - GE Aerospace generated orders of $15.5 billion in the fourth quarter, reflecting a 46% increase year-over-year, contributing to a revenue growth of 16% to $9.9 billion and a net profit increase of 37% to $2.3 billion [4] - For the year, the company reported over $50.3 billion in orders, a 32% increase from the previous year, with revenue rising by 9% to $38.7 billion and a profit margin widening to 19.7% [5] Market Dynamics - The performance of GE Aviation is closely tied to the number of aircraft orders, as its engines are utilized in various aircraft models, including Boeing and Airbus [4] - Analysts project GE's revenue for the first quarter to be $9.05 billion, with expectations of $39.4 billion for the full year and $43.56 billion for the next financial year [5] Impact of Tariffs - Donald Trump's tariffs on imports, particularly a 25% levy on steel and aluminum, are expected to impact GE's margins negatively [6] - The company is also affected by China's recent decision to halt shipments of rare earth elements, which are crucial for engine parts, potentially impacting its business [7] Stock Price Analysis - GE's stock price has recently rebounded, remaining above the 200-day moving average, indicating bullish control [10] - A significant megaphone pattern has formed in the stock price chart, which may lead to a strong bullish breakout, with a key level to watch being the year-to-date high of $213.95, an 18% increase from current levels [11]