GE Aerospace (GE)  shares rallied 3.9% in the last trading session to close at $299.81. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 5.2% loss over the past four weeks.GE Aerospace’s rally is primarily driven by optimism over strong momentum Commercial Engines & Services business. Solid demand for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activi ...

Core Insights - Saudia Group has entered a strategic agreement with GE Aerospace to equip the national flag carrier of Saudi Arabia with GEnx-1B engines for its order of 39 Boeing 787-9 and 787-10 aircraft, which is part of a broader initiative to localize aerospace expertise in the Kingdom [1][3][5] Group 1: Agreement Details - The agreement includes the supply of GEnx-1B engines, a multi-year maintenance, repair, and overhaul (MRO) program, and spare engines [1][3] - Capability-building initiatives will be delivered through Saudia Technic, focusing on technical training and knowledge transfer to enhance local aerospace expertise [1][3] Group 2: Strategic Importance - This partnership aims to transform Saudia Group's long-haul capabilities and expand air connectivity while ensuring that investment and skills remain within the Kingdom, aligning with Saudi Vision 2030 [3][5] - GE Aerospace has a long-standing relationship with the Saudi aerospace sector, spanning over 40 years, and is committed to developing local talent and technical capabilities [4] Group 3: Technical Advancements - The GEnx engine family, introduced in 2011, has accumulated over 70 million flight hours and powers two-thirds of all 787 aircraft in operation, showcasing its reliability and efficiency [3] - The engines are engineered with advanced materials and technologies, representing a significant advancement in modern propulsion systems [3] Group 4: Saudia Group's Vision - Saudia Group is focused on fleet expansion, new international routes, and increasing guest capacity, while also enhancing technical and engineering capabilities through Saudia Technic [5][6] - The Group's mission is to reshape the aviation ecosystem in the MENA region by embracing innovation and a customer-centric approach [6]

Core Points - Emirates has placed an order for 65 additional Boeing 777-9 aircraft, valued at $38 billion, increasing its total orderbook with Boeing to 315 widebody aircraft [1] - This order signifies a long-term commitment to U.S. aerospace manufacturing, supporting hundreds of thousands of high-value manufacturing jobs in the U.S. [2] - The order is expected to be positively received by the Trump Administration, which encourages foreign companies to invest in the U.S. [3] Company and Industry Insights - Emirates is Boeing's largest customer for wide-body jets, and the new order reflects its confidence in Boeing and GE Aerospace [4] - The order brings Emirates' total order for GE9X engines to 540 units, highlighting the airline's reliance on GE's technology [3][4] - Emirates is facing delays in Boeing's 777X program, which may extend delivery timelines into 2027 due to certification and production challenges [4][5] - The airline has invested significantly in retrofitting older jets to manage the gap caused by these delays, putting pressure on Boeing's new CEO to stabilize production [5]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $11.3 billion, up 26% year-over-year, with operating profit also increasing by 26% to $2.3 billion [15][20] - Earnings per share (EPS) grew 44% to $1.66, driven by increased operating profit, a lower tax rate, and a reduced share count [15][22] - Free cash flow reached $2.4 billion, up 30%, with over 130% conversion from earnings [15][22] Business Line Data and Key Metrics Changes - In Commercial Engines and Services (CES), orders were up 5%, with services orders increasing by 32% while equipment orders decreased by 42% due to timing [17][18] - CES revenue grew 27%, with services revenue up 28% and internal shop visit revenue up 33% [17][18] - In Defense and Propulsion Technologies (DPT), revenue grew 26%, with defense engine volume up 83% year-over-year [20][23] Market Data and Key Metrics Changes - Year-to-date, orders increased by 13%, with services orders up 31% [4] - The total DPT backlog is at $19 billion, up $1.5 billion year-over-year [20] - The company expects to grow LEAP deliveries more than 20% for the full year, up from a prior outlook of 15% to 20% [7][22] Company Strategy and Development Direction - The company is focused on enhancing its FlightDeck operating model to improve delivery and meet customer demand [3][5] - Investments in LEAP durability and next-generation technologies are prioritized to deliver value to customers [9][12] - The company is committed to maintaining competitive advantages through a strong backlog and continuous improvement in services and products [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment and the ability to meet customer expectations [4][9] - The company raised its full-year guidance for revenue growth to high teens, up from mid-teens, reflecting strong year-to-date performance [20][22] - Management highlighted the importance of ongoing investments in technology and supply chain improvements to support future growth [9][24] Other Important Information - The company is investing nearly $1 billion in its supply chain to expand capacity [9] - The LEAP 1A HPT blade is now in production, expected to enhance output significantly [7][12] - The company has secured significant commitments from major airlines, including Korean Air and Cathay Pacific, for its engines [13][14] Q&A Session Summary Question: Can you elaborate on the services performance and factors influencing it? - Management noted that strong services performance was driven by improved material availability and increased work scopes, with expectations for continued growth [29][30] Question: What gives confidence in the LEAP services margin outlook? - Management highlighted ongoing improvements in supply chain and operational performance, projecting continued growth in internal shop visits and external channel performance [35][41] Question: How is capital deployment being balanced with share repurchase and potential M&A? - Management confirmed a balanced approach to capital allocation, prioritizing reinvestment in the business while also returning capital to shareholders and considering strategic M&A opportunities [44][48] Question: What is driving the strong aftermarket revenue growth despite deceleration in ASK growth? - Management attributed the growth to pent-up demand for shop visits and increased work scopes, alongside a growing external LEAP channel [90][91]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $11.3 billion, up 26% year-over-year, with operating profit also increasing by 26% to $2.3 billion [15][20] - Earnings per share (EPS) grew by 44% to $1.66, driven by increased operating profit, a lower tax rate, and a reduced share count [15][21] - Free cash flow reached $2.4 billion, up 30%, with over 130% conversion from earnings [15][21] Business Line Data and Key Metrics Changes - In Commercial Engines and Services (CES), orders were up 5%, with services orders increasing by 32% while equipment orders decreased by 42% due to timing [17][20] - CES revenue grew by 27%, with services revenue up 28% and internal shop visit revenue up 33% [17][20] - In Defense and Propulsion Technologies (DPT), revenue grew by 26%, with defense engine volume up 83% year-over-year [20][21] Market Data and Key Metrics Changes - Year-to-date, total orders increased by 13%, with services orders up 31% [4] - The total DPT backlog reached $19 billion, up $1.5 billion year-over-year [20] - The company expects revenue growth in the high teens for the full year, up from a prior outlook of mid-teens [21] Company Strategy and Development Direction - The company is focused on its FLIGHT DECK operating model to enhance delivery and operational efficiency [3][4] - Investments in LEAP durability and next-generation technologies are prioritized to meet customer demands and improve product reliability [10][12] - The company is committed to maintaining competitive advantages through continuous improvement in services and products [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment and the ability to meet customer expectations through improved operational performance [4][5] - The company raised its full-year guidance across the board, reflecting strong year-to-date performance and expectations for continued growth [21][22] - Management highlighted the importance of collaboration with suppliers to enhance material availability and production capacity [6][9] Other Important Information - The company is investing nearly $1 billion in its supply chain to expand capacity [9] - The LEAP-1A durability kit is in production, expected to drive significant improvements in engine performance [77] - The company has secured significant commitments from major airlines, enhancing its backlog and market position [13][14] Q&A Session Summary Question: Services performance and factors driving growth - Management noted that strong services performance was driven by improved material availability and increased work scopes, with expectations for continued growth into 2026 [29][30] Question: LEAP services margin outlook - Management expressed confidence in achieving targeted LEAP services margins by 2028, citing operational improvements and cost reductions [35][41] Question: Capital deployment and share repurchase strategy - Management confirmed a balanced approach to capital allocation, focusing on reinvestment in the business while also returning capital to shareholders [45][48] Question: Spare parts performance and drivers of growth - Management highlighted pent-up demand and increased work scopes as key drivers of spare parts growth, with expectations for continued strong performance [53][56] Question: 2026 revenue growth outlook - Management indicated optimism for 2026, expecting solid revenue growth driven by a growing installed base and increased shop visit demand [61][64] Question: Defense business and R&D insights - Management discussed leveraging commercial experience to enhance defense operations, focusing on next-gen platforms and improving service models [71][72] Question: Durability of new LEAP-1A blade - Management reported positive initial performance of the LEAP-1A durability kit, with a multi-year rollout plan for the installed base [76][78] Question: Supply chain material availability improvements - Management attributed improvements to consistent efforts over the past 18 months, emphasizing collaboration with suppliers to address constraints [84][86] Question: Commercial aftermarket revenue growth - Management explained that pent-up demand and increased work scopes are driving aftermarket revenue growth, which is expected to continue [91][92]

Core Viewpoint - Boeing's 777X aircraft program has faced significant delays, with the first commercial flights now expected in 2027, pushed back from an initial 2020 target due to certification challenges and extensive work still required [2][4][6]. Program Delays and Challenges - The 777X program, launched in 2013, has encountered complexities in design and certification, including innovative features like folding wingtips and large GE9X engines [3][5]. - Boeing's CEO acknowledged a "mountain of work" remains, particularly in obtaining Type Inspection Authorization from the FAA, which is crucial for certification [4][5]. - The delay has resulted in substantial financial implications, with Boeing reporting reach-forward losses of $4.08 billion for the 777X and 767 programs combined in Q4 2024 [5]. Demand and Customer Sentiment - Despite the delays, demand for the 777X remains strong, with over 550 orders received, indicating airlines' eagerness for the aircraft's advanced features [6][7]. - Emirates, the largest customer with 205 orders, has expressed cautious optimism about receiving the first units in 2027, highlighting the determination to address concerns raised by customers [10][11]. Aircraft Features and Passenger Experience - The 777X promises significant improvements, including a larger cabin, reduced fuel burn, and extended range, with a projected 10% decrease in fuel consumption compared to the 777-300ER [7][8]. - The aircraft's design includes larger windows and a wider cabin, enhancing passenger comfort and allowing airlines to innovate in cabin configurations [13][14]. - Emirates plans to incorporate its luxurious "Game Changer" first-class suite into the 777X, which features advanced design elements for premium passengers [14][15].

Group 1 - GE Aerospace's Board of Directors declared a dividend of $0.36 per share on outstanding common stock, payable on October 27, 2025, to shareholders of record by September 29, 2025 [1] - The ex-dividend date is set for September 29, 2025 [1] - GE Aerospace has an installed base of approximately 49,000 commercial and 29,000 military aircraft engines, employing around 53,000 people [2] Group 2 - GE Aerospace announced a strategic partnership and equity investment agreement with BETA Technologies to advance hybrid electric flight [3] - Cathay Pacific has committed to purchasing GE9X engines to power 14 additional Boeing 777-9 aircraft [4]

Group 1 - GE Aerospace is set to release its second-quarter earnings results on July 17, with expected earnings of $1.40 per share, an increase from $1.20 per share in the same period last year [1] - The projected quarterly revenue for GE Aerospace is $9.51 billion, compared to $8.22 billion a year earlier [1] - On July 7, GE Aerospace announced a multi-year service, repair, and overhaul agreement with China Airlines for GE9X engines on 14 Boeing 777X aircraft [2] Group 2 - GE Aerospace shares increased by 0.9%, closing at $264.67 [2] - Analysts have provided various ratings and price target adjustments for GE stock, with RBC Capital raising the target from $220 to $275 [5] - Other analysts have also maintained positive ratings and adjusted price targets, indicating a generally favorable outlook for GE Aerospace [5]

Group 1: Contract and Collaboration - GE Aerospace secured a contract from Korean Air to supply GEnx and GE9X engines, marking the first GE9X order in South Korea [1] - The deal includes maintenance, repair, and overhaul services for the GE9X engines, highlighting the long-standing collaboration between GE Aerospace and Korean Air [1][3] Group 2: Engine Performance and Market Presence - The GEnx engine family has completed over 62 million flight hours, with more than 3,600 engines currently in service and backlog [2] - The GEnx engine is installed in two-thirds of all Boeing 787 aircraft in service, while the GE9X engine offers a 10% improvement in specific fuel consumption compared to the GE90-115B [2] Group 3: Investment and Growth Strategy - GE plans to invest over €78 million in 2025 to expand and upgrade its manufacturing facilities in Europe, aimed at boosting production capacities for commercial and defense customers [4] - The company is benefiting from a growing installed base and higher utilization of engine platforms, driven by strong momentum in commercial and defense sectors [5] Group 4: Financial Performance - GE's shares have gained 23.4% in the past three months, outperforming the industry's 4.7% growth [6] - The Zacks Consensus Estimate for GE's 2025 earnings has increased by 2.3% in the past 60 days, indicating positive market sentiment [6]