Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

f60d355d105f0625cbe7b740aae20582da9db42320d85757b763862213f53cb8

General Electric (GE) is a multinational conglomerate that operates through three main segments: Aerospace, Renewable Energy, and Power. The company is a global leader in propulsion, services, and systems, particularly in the aerospace industry, where it manufactures jet engines for commercial and military aircraft, provides maintenance, and sells spare parts **[0000040545-24-000027_ge-20231231.htm:11]** **[0000040545-24-000200_ge-20240930.htm:3]**. GE also focuses on renewable energy solutions, offering wind and other renewable energy generation equipment, as well as grid solutions **[0000040545-24-000027_ge-20231231.htm:11]**. Additionally, GE provides power generation equipment and services, including gas, steam, and nuclear power solutions **[0000040545-24-000027_ge-20231231.htm:11]**. The company emphasizes innovation and sustainability, aiming to develop technologies for a more sustainable future **[0000040545-24-000027_ge-20231231.htm:5]** **[0000040545-24-000027_ge-20231231.htm:11]**.

1. **Aerospace** - Manufactures jet engines for commercial and military aircraft, provides maintenance, component repair, and overhaul services, and sells spare parts.
2. **Power** - Provides gas, steam, nuclear, and other power generation equipment, along with services to support these products.
3. **Renewable Energy** - Focuses on wind and other renewable energy generation equipment and grid solutions, including onshore and offshore wind, blade manufacturing, grid solutions, hydro, battery storage, hybrid renewables, and digital services offerings.

14eb9b66fedd04768d09d0fa607588925ad95a8c8491f23906f3ccd580ae11ee

d9c8efaedc8d050e3ae488b08d5fb375bc6abaa35fbb32b9797306e1dd0ecb95

| Metric / Quarter                                      | Q4 2022               | Q1 2023               | Q2 2023               | Q3 2023               | Q4 2023               | Q1 2024               | Q2 2024               | Q3 2024               |
|-------------------------------------------------------|-----------------------|-----------------------|-----------------------|-----------------------|-----------------------|-----------------------|-----------------------|-----------------------|
| RPO for Equipment ($ million)                         | **13,748**  **[0000040545-23-000023_ge-20221231.htm:15]**       | **47,991**  **[0000040545-23-000136_ge-20230331.htm:5]**       | **53,538**  **[0000040545-23-000198_ge-20230630.htm:40]**       | **53,285**  **[0000040545-23-000238_ge-20230930.htm:5]**       | **28,503**  **[0000040545-24-000027_ge-20231231.htm:13]** **[0000040545-24-000027_ge-20231231.htm:18]**  | **57,775**  **[0000040545-24-000113_ge-20240331.htm:5]**       | **19,191**  **[0000040545-24-000176_ge-20240630.htm:4]**       | **19,210**  **[0000040545-24-000200_ge-20240930.htm:54]**       |
| RPO for Services ($ million)                          | **121,511**  **[0000040545-23-000023_ge-20221231.htm:15]**     | **123,114**  **[0000040545-23-000136_ge-20230331.htm:7]**     | **192,249**  **[0000040545-23-000198_ge-20230630.htm:5]**     | **199,807**  **[0000040545-23-000238_ge-20230930.htm:5]**     | **137,611**  **[0000040545-24-000027_ge-20231231.htm:13]**     | **208,095**  **[0000040545-24-000113_ge-20240331.htm:5]**     | **134,205**  **[0000040545-24-000176_ge-20240630.htm:7]**      | **146,879**  **[0000040545-24-000200_ge-20240930.htm:54]**      |
| Total RPO ($ million)                                 | **135,259**  **[0000040545-23-000023_ge-20221231.htm:15]**     | **137,430**  **[0000040545-23-000136_ge-20230331.htm:7]**     | **136,869**  **[0000040545-23-000198_ge-20230630.htm:9]**     | **253,092**  **[0000040545-23-000238_ge-20230930.htm:5]**     | **153,858**  **[0000040545-24-000027_ge-20231231.htm:13]**     | **265,870**  **[0000040545-24-000113_ge-20240331.htm:5]**     | **143,000**  **[0000040545-24-000176_ge-20240630.htm:7]**     | **166,089**  **[0000040545-24-000200_ge-20240930.htm:54]**     |
| LEAP Engines Delivered                                | **1,136**  **[0000040545-23-000023_ge-20221231.htm:15]**       | **366**  **[0000040545-23-000136_ge-20230331.htm:7]**         | **419**  **[0000040545-23-000198_ge-20230630.htm:9]**         | **389**  **[0000040545-23-000238_ge-20230930.htm:9]**         | **1,570**  **[GE_3370577_0]**       | **367**  **[0000040545-24-000113_ge-20240331.htm:9]**         | **297**  **[0000040545-24-000176_ge-20240630.htm:7]**         | **365**  **[0000040545-24-000200_ge-20240930.htm:7]**         |
| Internal Shop Visit Growth %                          | **25%**  **[GE_3141164_2]**         | **32%**  **[0000040545-23-000135_ge1q2023earningsrelease.htm:0]**         | **10%**  **[GE_3383353_2]**         | **2%**  **[GE_3361645_3]**          | **10%**  **[GE_3370577_3]**         | **3%**  **[GE_3380236_5]**          | **14%**  **[0000040545-24-000176_ge-20240630.htm:7]**         | **(1)%**  **[0000040545-24-000200_ge-20240930.htm:7]**        |
| T901-GE-900 Engines Delivered                         |                       |                       |                       |                       |                       |                       | **2**  **[0000040545-24-000176_ge-20240630.htm:8]** **[0000040545-24-000174_ge2q2024earningsrelease.htm:0]**    |                       |
| T700 Series Turbine Engines Contract Value ($ million)|                       |                       |                       |                       |                       |                       | **1,100**  **[0000040545-24-000176_ge-20240630.htm:8]**       | **1,100**  **[0000040545-24-000200_ge-20240930.htm:8]**       |

54d3082ab517c9201f8dd67800a3b5c3b056e68b9e8c1b5daab817cb6657f66a

1. Given the ongoing supply chain constraints impacting engine deliveries, with LEAP deliveries expected to be down approximately 10% year-over-year, can you detail the specific steps you're taking to mitigate these issues and ensure you meet your delivery commitments in both the commercial and defense segments?  **[GE_3403169_1]** **[GE_3403169_0]** **[GE_3403169_4]** 

2. You mentioned that higher 9X engine shipments in 2025 will put pressure on margins and that program losses are expected to peak later in the decade before becoming profitable by 2030; how do you plan to manage these losses, and what strategies are in place to accelerate the profitability of the 9X program?  **[GE_3403169_16]** **[GE_3403169_6]** 

3. Despite lower engine deliveries and ongoing supply chain challenges, your financials continue to improve; can you explain how you're achieving strong earnings and cash flow under these circumstances, and what risks could impact this performance moving forward?  **[GE_3403169_3]** **[GE_3403169_9]** **[GE_3403169_6]** 

4. In the defense segment, profits declined due to lower engine deliveries and higher investments; what are the primary factors contributing to the delivery challenges, and what measures are you implementing to improve performance and meet the evolving needs of your military customers?  **[GE_3403169_3]** **[GE_3403169_2]** 

5. With equipment growth expected to be faster than services in 2025 due to higher volumes, including 9X shipments, how will you address the potential margin pressures and ensure overall profitability, especially considering that some 2024 equipment volume is moving into 2025?  **[GE_3403169_0]** **[GE_3403169_4]** **[GE_3403169_6]** 

11113c31cbb2de148cffc417e9a3c88730cb3741215b5ef295cb4d6449a4c266

Total Revenue [USD, Millions]

Cost of Goods Sold (COGS) [USD, Millions]

SG&A [USD, Millions]

R&D [USD, Millions]

D&A [USD, Millions]

Interest Expense [USD, Millions]

Operating Income (EBIT) [USD, Millions]

Net Income [USD, Millions]

EPS - Basic [USD]

EPS - Diluted [USD]

700693bef79bc72d6c7d12461349164fef83b151f78c97e069693e9abaa4d1b5

c3f83b3eeae13e6ad9a181e215285e2f7e2aa003262f07b7a4f1deaafa911faa

abde8561a4829ef8f7a2694298d12c7b399d9a5df39cf8405ef9ac73bc12c1db

**Annual guidance for FY 2024:**
- **Revenue (CES)**: low double digits to mid-teens  **[GE_3403169_4]**  (no change from low double digits to mid-teens   )  
- **Total operating profit**: $6.7B to $6.9B  **[GE_3403169_4]**  (no change from $6.7B to $6.9B   )  
- **CES operating profit**: $6.6B to $6.8B  **[GE_3403169_4]**  (no change from $6.6B to $6.8B   )  
- **DPT operating profit**: lower end of $1.0B to $1.3B  **[GE_3403169_4]**  (no change from lower end of $1.0B to $1.3B   )  
- **Corporate costs**: $850M  **[GE_3403169_4]**  (no change from $850M   )  
- **Tax rate**: 20%  **[GE_3403169_4]**  (no change from 20%   )  
- **Adjusted EPS**: $4.20 to $4.35  **[GE_3403169_4]**  (no change from $4.20 to $4.35   )  
- **Free cash flow**: $5.6B to $5.8B  **[GE_3403169_4]**  (no change from $5.6B to $5.8B   )  
- **LEAP deliveries**: down ~10% year-over-year  **[GE_3403169_4]**  (no prior guidance)  

270cfb48ef61317fa1a78bb9279def6e92d86a0d63660a88c79b79931b109bee

RPO for Equipment ($ million)

RPO for Services ($ million)

LEAP Engines Delivered

Internal Shop Visit Growth %

T901-GE-900 Engines Delivered

T700 Series Turbine Engines Contract Value ($ million)

48366cad9052bdfc393501a1b23d08df9c914251273050ed79ba2639f1f75c35

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Earnings and Cash Guidance**: Raised due to strong performance.
  2. **Revenue**: CES expected to grow in low double digits to mid-teens; DPT in mid- to high single digits.
  3. **Operating Profit**:
     - Total: **$6.7 billion to $6.9 billion**.
     - CES: **$6.6 billion to $6.8 billion**.
     - DPT: Lower end of **$1 billion to $1.3 billion**.
  4. **Corporate Costs and Eliminations**: Around **$850 million**.
  5. **Tax Rate**: Around **20%**.
  6. **Adjusted EPS**: **$4.20 to $4.35**.
  7. **Free Cash Flow**: **$5.6 billion to $5.8 billion**.
  8. **Interest Expense**: Unchanged  **[GE_3403169_4]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Revenue Growth**: High single digits; CES equipment up high single to low double digits; CES services mid-teens.
  2. **Operating Profit**: **$6.5 billion to $6.8 billion**.
  3. **Corporate Costs and Intercompany Eliminations**: Below **$900 million**.
  4. **Adjusted EPS**: **$3.95 to $4.20**.
  5. **Free Cash Flow**: **$5.3 billion to $5.6 billion**  **[GE_3393923_4]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Revenue Growth**: At least low double digits; CES mid- to high teens; DPT mid- to high single digits.
  2. **Operating Profit**: **$6.2 billion to $6.6 billion**.
  3. **Margins**: Expand by **50 basis points**.
  4. **Adjusted EPS**: **$3.80 to $4.05**.
  5. **Free Cash Flow**: More than **$5 billion**.
  6. **LEAP Output**: Growth of **10% to 15%**.
  7. **Shop Visits and Services**: Mid-teens revenue growth.
  8. **Corporate Costs and Eliminations**: About **$1 billion**  **[GE_3380236_5]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **GE Aerospace**:
     - Revenue Growth: At least low double digits.
     - Operating Profit: **$6.6 billion to $7.1 billion**.
     - Margins: Flat year-over-year.
     - Free Cash Flow: Over **$5 billion**.
  2. **GE Vernova**:
     - Revenue: **$34 billion to $35 billion**.
     - Adjusted EBITDA Margin: Higher end of mid-single digits.
     - Free Cash Flow: **$700 million to $1.1 billion**.
  3. **Overall GE**:
     - Adjusted EPS for Q1 2024: **$0.60 to $0.65**.
     - Revenue Growth for Q1 2024: High single-digit growth  **[GE_3370577_8]** **[GE_3370577_7]** **[GE_3370577_6]** .

e42570dbd167d75622885c213b87fd1b7d7c5ea84b986ca9258bb3998af73a4f

| Name                  | Position                                                                 | Start Date       | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| H. Lawrence Culp, Jr. | Chairman of the Board & CEO, GE; CEO, GE Aerospace                       | October 2018     | H. Lawrence Culp, Jr. has been serving as the Chairman of the Board and Chief Executive Officer of GE since October 2018. He also became CEO of GE Aerospace in June 2022  **[0001308179-24-000139_lge2024_def14a.htm:7]** **[0000040545-24-000027_ge-20231231.htm:140]** **[0001308179-24-000139_lge2024_def14a.htm:42]** .                                                          |
| Rahul Ghai            | Senior Vice President & Chief Financial Officer, GE                      | September 2023   | Rahul Ghai is the Senior Vice President & Chief Financial Officer at GE, a position he has held since September 2023. Previously, he was the CFO of Otis Worldwide Corporation and Harris Corporation  **[0000040545-24-000027_ge-20231231.htm:140]** .                                    |
| L. Kevin Cox          | Senior Vice President, Chief Human Resources Officer, GE                 | February 2019    | L. Kevin Cox is the Senior Vice President and Chief Human Resources Officer at GE, a role he has held since February 2019. He was previously the CHRO at American Express  **[0000040545-24-000027_ge-20231231.htm:140]** **[0001308179-24-000139_lge2024_def14a.htm:44]** .                                                             |
| Michael J. Holston    | Senior Vice President, General Counsel & Secretary, GE                   | April 2018       | Michael J. Holston is the Senior Vice President, General Counsel & Secretary at GE since April 2018. He previously held similar roles at Merck & Co. and Hewlett-Packard  **[0000040545-24-000027_ge-20231231.htm:140]** **[0001308179-24-000139_lge2024_def14a.htm:44]** .                                                               |
| Russell Stokes        | Senior Vice President, GE; President & CEO, Commercial Engines and Services, GE Aerospace | July 2022        | Russell Stokes is the Senior Vice President at GE and President & CEO of Commercial Engines and Services at GE Aerospace since July 2022. He has been with GE for 27 years  **[0001308179-24-000139_lge2024_def14a.htm:43]** **[0001308179-23-000208_ge4121681-def14a.htm:64]** .                                                             |
| Scott L. Strazik      | Senior Vice President, GE; President & CEO, GE Vernova                   | January 2019     | Scott L. Strazik is the Senior Vice President at GE and President & CEO of GE Vernova since January 2019. He joined GE in 1999 and has held various leadership positions  **[0000040545-24-000027_ge-20231231.htm:140]** **[GE_3376731_5]** .                                                               |
| Thomas S. Timko       | Vice President, Controller & Chief Accounting Officer, GE                | September 2018   | Thomas S. Timko is the Vice President, Controller & Chief Accounting Officer at GE since September 2018  **[0000040545-24-000027_ge-20231231.htm:140]** .                                                                                                                                   |
| Robert Giglietti      | Vice President, Chief Accounting Officer, Controller, and Treasurer, GE  | October 22, 2024 | Robert Giglietti serves as the Vice President, Chief Accounting Officer, Controller, and Treasurer at GE. He signed a report in this capacity on October 22, 2024  **[0000040545-24-000200_ge-20240930.htm:55]** .                                                                          |
| Jennifer B. VanBelle  | Senior Vice President & Treasurer, GE                                    | N/A              | Jennifer B. VanBelle is the Senior Vice President and GE Treasurer. She also holds executive roles at GE Capital US Holdings, Inc., and GE Capital Global Holdings, LLC  **[0000950142-23-002793_eh230421981_13da3-aer.htm:6]** **[0000950142-23-002793_eh230421981_13da3-aer.htm:5]** . The documents do not specify her start date.                   |

5442656766a435c6768108e8c92a50a90cbec96a8e99b8c70bc6ed74b18318e4

| Program Details          | Program 1       |
|--------------------------|-----------------|
| Approval Date            | March 7, 2024  **[0000040545-24-000200_ge-20240930.htm:23]** |
| End Date/Duration        | N/A             |
| Total additional amount  | **$15 billion**  **[0000040545-24-000200_ge-20240930.htm:23]** |
| Remaining authorization amount | **$11.744 billion** as of September 30, 2024  **[0000040545-24-000200_ge-20240930.htm:23]** |
| Details                  | Replaced previous $3 billion authorization  **[0000040545-24-000200_ge-20240930.htm:14]** **[0000040545-24-000176_ge-20240630.htm:15]** **[0000040545-24-000176_ge-20240630.htm:22]** |

f1363fc0855815882a7a630dc9432ad1a089cdc645365a917be2240b5fa33163

United States

Non-U.S. Regions

- Europe

- China

- Asia (excl. China)

- Americas (excl. U.S.)

- Middle East and Africa

Total Non-U.S. Revenue

Total Revenue

5eae6c607ac517fdd837643e119933555c183df97f6e8b36abdeedcf3c20d33a

- **GE Aerospace projects significant profit growth**, expecting to add about **$2.5 billion** in profit between 2023 and 2025, which is about **one-third better than previous expectations**. This demonstrates strong financial performance and upward revisions to profit estimates.  **[GE_3413177_8]**
- The company plans to **increase shareholder returns**, with **$7 billion** in share repurchases and a planned **30% increase in dividends**, reflecting confidence in future cash flows and financial strength.  **[GE_3413177_17]**
- **Services revenue is expected to grow** low double digits to mid-teens in 2025, driven by higher spare parts sales and increased shop visit revenue, underpinned by strong demand and improved pricing.  **[GE_3413177_10]**

f8232baa64e28d09f59c3389a294a47b0581696067aa38c58fdd9092c164ac0d

- **Ongoing supply chain constraints may continue to hinder GE Aerospace's ability to capitalize on strong demand**, with improvements expected to be gradual and no significant "step function improvement" anticipated in 2025. The company acknowledges that challenges with approximately 15 critical suppliers persist, potentially affecting revenue growth and operational execution.  **[GE_3413177_16]**
- **Profit growth guidance for 2025 has been revised downward**, with the company now projecting **$750 million of profit growth at the midpoint**, down from the initial expectation of **$1 billion**. This suggests **slowing profit growth momentum** and potential challenges in meeting prior expectations.  **[GE_3413177_8]**
- **Dependence on key programs like the GE9X engine, with limited opportunities beyond the Boeing 777X**, may impact future growth prospects. The company is "fully focused" on helping launch the 777X, with no mention of other applications for the GE9X, which could be concerning given **delays in the 777X program**.  **[GE_3413177_9]**

911c585bcdf19a004f30478b55f43748511c34c8f125864ba6cc8326504fc4da

1. **Updated 2025 Profit Guidance**  
   **Q:** What's changed in the 2025 profit outlook vs. prior expectations?  
   **A:** GE now expects to add about **$2.5 billion** of profit over two years, which is about **one-third better** than anticipated nine months ago.  **[GE_3413177_8]**  The 2025 profit growth is driven by a **$700 million** increase in CES profit at the midpoint, mainly from services revenue rising by **$3 billion** year-over-year.  **[GE_3413177_8]**  Services margins are expected to remain flat despite LEAP's growing share, offset by productivity and pricing.  **[GE_3413177_8]**  The 9X program will be a headwind of a couple of hundred million dollars as engine shipments ramp up.  **[GE_3413177_8]**  DPT revenue is projected to grow mid- to high single digits, with margins expanding about **70 basis points**.  **[GE_3413177_8]** 

2. **LEAP OE Profitability Outlook**  
   **Q:** Will LEAP OE become a profit center after breakeven?  
   **A:** LEAP services became profitable in **2024**, and the program reaches breakeven in **2025**, with OE becoming profitable in **2026**.  **[GE_3413177_7]**  Profitability is improving due to higher external spare parts volume, better pricing, lower warranty expenses, and more shop visits than expected.  **[GE_3413177_7]**  The program is on track to deliver the same profit as CFM56 by **2028**, powering future growth for the company.  **[GE_3413177_7]** 

3. **CES Margins and Services Growth**  
   **Q:** How will CES margins and services evolve in 2025?  
   **A:** CES had a strong quarter with **28%** margins, exceeding expectations due to favorable services mix and higher spare parts sales.  **[GE_3413177_10]**  In 2025, spare parts are expected to remain strong, with projected departures up mid-single digits and spare parts revenue up low double digits due to pricing changes.  **[GE_3413177_10]**  Shop visit revenue is anticipated to increase mid-teens from high single-digit volume growth and more extensive work scopes.  **[GE_3413177_10]**  Profit will be driven by these factors, and the company enters the year with about **90%** of spare parts revenue in backlog.  **[GE_3413177_10]** 

4. **Supply Chain Constraints on Services Growth**  
   **Q:** Could services growth be higher if supply issues resolved?  
   **A:** Demand is strengthening broadly, and there's pent-up demand with a backlog, some of which is delinquent.  **[GE_3413177_11]**  If supply chain improvements continue and internal progress is made, there's potential to exceed current growth expectations.  **[GE_3413177_11]**  However, operational execution remains the focus to deliver on outlined plans.  **[GE_3413177_11]** 

5. **GE9X Engine Prospects Beyond 777X**  
   **Q:** Are there opportunities for the 9X beyond the 777X?  
   **A:** Currently, GE is fully focused on supporting Boeing to launch the **777X**.  **[GE_3413177_9]**  They have nearly **1,000 engines** in backlog and have started shipping engines to Boeing.  **[GE_3413177_9]**  The delays have allowed for extensive testing, making it the most tested engine in GE's history, approaching **2,500 cycles**.  **[GE_3413177_9]**  While excited about the backlog and entry into service, no other opportunities beyond the 777X are being pursued at this time.  **[GE_3413177_9]** 

14b8d92f59620878f9613776c9b9461c52e5ced36eaec872a284b365b9c3b59a

38f860bcdfe4057e1d972859f040820421a341eb5b77d43b76c301f87f3679b7

GE Aerospace lifts 2025 profit forecast by $2.5B (~33% above prior) on strong services growth. $7B buyback & 30% dividend hike signal confidence. Supply chain friction persists (15 key suppliers) with partial drag on revenue & margins.

b28fdaf33ff303cc34e8e357f7c751eb4c18b7af4ad8e8115fc3c590e7ac70cf

- **GE increased its full-year operating profit guidance to a range of \$6.2 billion to \$6.6 billion**, up \$150 million at the midpoint, reflecting **mid-teens profit growth** and more than **30% EPS growth**.  **[GE_3380236_12]**
- **GE Aerospace doubled its free cash flow year-over-year**, driven by higher earnings and working capital improvements, and expects free cash flow of more than **\$5 billion** for the full year, with conversion well above **100% of net income**.  **[GE_3380236_20]**
- **GE Aerospace's Commercial Engines & Services margins expanded**, driven by favorable pricing and customer mix, leading to confidence in **raising full-year profit guidance by about \$100 million** for CES.  **[GE_3380236_13]**

923bd7697c810d153c980ce5a80fa84927423fe36ff5bb99af27bf841cd7a2d0

| Name               | Start Date       | End Date         | Reason for Change                                                                 |
|--------------------|------------------|------------------|----------------------------------------------------------------------------------|
| Deloitte & Touche LLP | 2021  **[0000040545-20-000035_ge8-kresponseletter.htm:0] [0000040545-20-000035_ge8-k62220.htm:1]**  | Present      | Current auditor.                                                             |
| KPMG LLP           | 1909  **[0000040545-21-000011_ge-20201231.htm:101]**      | 2020  **[0000040545-20-000035_ge8-kresponseletter.htm:0] [0000040545-20-000035_ge8-k62220.htm:1]**   | The Audit Committee conducted an evaluation process as part of audit firm rotation.  **[0000040545-20-000035_ge8-k62220.htm:1]**  |

24411a15603e1f0f9a650d0fd9b9d945930f71f12453cbf9e9597e28867c1c71

4ba8ad2e61255515635b2aa8301ed176511c8a107eacdee6e1a80858e996e646

- Total Revenue: $10.812 billion (**-44% YoY**)  **[0000040545-25-000009_ge4q2024earningsrelease.htm:3]** **[0000040545-25-000009_ge4q2024earningsrelease.htm:6]** **[0000040545-25-000009_ge4q2024earningsrelease.htm:1]** **[0000040545-24-000027_ge-20231231.htm:79]** **[0000040545-24-000027_ge-20231231.htm:9]**   
- Operating Income: $2.293 billion (**+93% YoY**)  **[0000040545-25-000009_ge4q2024earningsrelease.htm:3]** **[0000040545-24-000027_ge-20231231.htm:79]**   
- Cost of Goods Sold: $6.761 billion (-53% YoY)  **[0000040545-25-000009_ge4q2024earningsrelease.htm:3]** **[0000040545-24-000027_ge-20231231.htm:79]**   
- SG&A: $1.157 billion (-54% YoY)  **[0000040545-25-000009_ge4q2024earningsrelease.htm:3]** **[0000040545-24-000027_ge-20231231.htm:79]**   
- R&D: $385 million (-30% YoY)  **[0000040545-25-000009_ge4q2024earningsrelease.htm:3]** **[0000040545-24-000027_ge-20231231.htm:79]**   
- EPS (Basic): $1.77 (+21% YoY)  **[0000040545-25-000009_ge4q2024earningsrelease.htm:3]** **[0000040545-24-000027_ge-20231231.htm:79]**   

35659b618277afcc5482723b16a575544868c58b0afed89ae27b767c388db356

671ab9684d9f123fcfecffb647e1be4c83a03031bebfd084221ae4839e2642fe

Number of Commercial Engines Delivered (units)

Number of LEAP Engines Delivered (units)

Number of Defense Engines Delivered (units)

Internal Shop Visit Growth Rate (percentage)

e22de1505e9d184b7432127e7fe10e456643be55a658963b66d2e40922b6b47d

| Year | Amount Due (in millions) | Debt Type                                                                                     | Interest Rate (%) | % of Total Debt                                                                                   |
|----------|------------------------------|--------------------------------------------------------------------------------------------------|-----------------------|-------------------------------------------------------------------------------------------------------|
| 2025     | $2,039 **[0000040545-25-000015_ge-20241231.htm:96]**               | Senior unsecured, subordinated notes, and other long-term borrowings **[0000040545-25-000015_ge-20241231.htm:96]**                    | 0.875 - 3.450 **[0000040545-25-000015_ex22listofsubsidiaryguaran.htm:0]** **[0000040545-25-000015_ex4ldescriptionoftheregist.htm:0]** | 10.6% = (2,039 / 19,273) * 100 **[0000040545-25-000015_ge-20241231.htm:96]**                                                               |
| 2026     | $1,304 **[0000040545-25-000015_ge-20241231.htm:96]**               | Senior unsecured and 7.1% Notes due 2026 (originally issued by Franchise Finance Corporation of America) **[0000040545-25-000015_ge-20241231.htm:96]** **[0000040545-25-000015_ex22listofsubsidiaryguaran.htm:0]** | 7.1 **[0000040545-25-000015_ex22listofsubsidiaryguaran.htm:0]**           | 6.8% = (1,304 / 19,273) * 100 **[0000040545-25-000015_ge-20241231.htm:96]**                                                                 |
| 2027     | $1,493 **[0000040545-25-000015_ge-20241231.htm:96]**               | Senior unsecured, 7.50% Debentures due 2027 (originally issued by SUSA Partnership, L.P.) **[0000040545-25-000015_ge-20241231.htm:96]** **[0000040545-25-000015_ex22listofsubsidiaryguaran.htm:0]** | 1.875 - 7.50 **[0000040545-25-000015_ex22listofsubsidiaryguaran.htm:0]** **[0000040545-25-000015_ex4ldescriptionoftheregist.htm:0]** | 7.7% = (1,493 / 19,273) * 100 **[0000040545-25-000015_ge-20241231.htm:96]**                                                                 |
| 2028     | $452 **[0000040545-25-000015_ge-20241231.htm:96]**                 | 7.70% Exchange Notes due 2028 **[0000040545-25-000015_ex22listofsubsidiaryguaran.htm:0]**                                                           | 7.70 **[0000040545-25-000015_ex22listofsubsidiaryguaran.htm:0]**          | 2.3% = (452 / 19,273) * 100 **[0000040545-25-000015_ge-20241231.htm:96]**                                                                   |
| 2029     | $1,445 **[0000040545-25-000015_ge-20241231.htm:96]**               | Senior unsecured **[0000040545-25-000015_ge-20241231.htm:96]**                                                                        | 1.500 **[0000040545-25-000015_ex4ldescriptionoftheregist.htm:0]**         | 7.5% = (1,445 / 19,273) * 100 **[0000040545-25-000015_ge-20241231.htm:96]**                                                                 |
| 2030     | N/A                          | 4.400% Notes due 2030 **[0000040545-25-000015_ex22listofsubsidiaryguaran.htm:0]**                                                                   | 4.400 **[0000040545-25-000015_ex22listofsubsidiaryguaran.htm:0]**         | N/A                                                                                                   |
| 2032     | N/A                          | 4.550% Notes due 2032 **[0000040545-25-000015_ex22listofsubsidiaryguaran.htm:0]**                                                                   | 4.550 **[0000040545-25-000015_ex22listofsubsidiaryguaran.htm:0]**         | N/A                                                                                                   |
| 2035     | N/A                          | Subordinated notes and 7.50% Guaranteed Subordinated Notes due 2035 **[0000040545-25-000015_ge-20241231.htm:96]** **[0000040545-25-000015_ex4ldescriptionoftheregist.htm:0]**             | 7.50 **[0000040545-25-000015_ex4ldescriptionoftheregist.htm:0]**          | N/A                                                                                                   |
| 2037     | N/A                          | Subordinated notes and 2.125% Notes due 2037 **[0000040545-25-000015_ge-20241231.htm:96]** **[0000040545-25-000015_ex4ldescriptionoftheregist.htm:0]**                                     | 2.125 **[0000040545-25-000015_ex4ldescriptionoftheregist.htm:0]**         | N/A                                                                                                   |
| Thereafter | $12,540 **[0000040545-25-000015_ge-20241231.htm:96]**            | Senior unsecured **[0000040545-25-000015_ge-20241231.htm:96]**                                                                        | N/A                   | 65.1% = (12,540 / 19,273) * 100 **[0000040545-25-000015_ge-20241231.htm:96]**                                                               |

882901ce3f4b845994f568ddcbbc80405a038dd35c9bf032a1df3f2d8da0d48f

1. **Vernova Free Cash Flow Guidance**  
   **Q:** What drives Vernova's 2024 free cash flow outlook?  
   **A:** Vernova expects to generate positive free cash flow of **$700 million to $1.1 billion** in 2024, up from **$600 million** in 2023.  **[GE_3370577_10]**  This improvement is driven by EBITDA growth ranging from low single-digit to high end of mid-single-digit.  **[GE_3370577_10]**  Key variables affecting the range include Offshore Wind execution and the timing of the EDF transaction closing.  **[GE_3370577_10]** 

2. **Aerospace Margins Progression to 2025**  
   **Q:** How will Aerospace margins reach 20% by 2025?  
   **A:** Aerospace margins are expected to be flat from 2023 to 2024 due to LEAP OE ramp and GE9X introduction.  **[GE_3370577_15]**  Profit growth in 2025 will be driven by top-line improvement, pricing offsetting inflation, and productivity gains.  **[GE_3370577_15]**  Despite mix pressures from LEAP volumes and GE9X ramp, Aerospace aims for **$7.1 to $7.6 billion** of profit in 2025, translating to roughly **20% margins**.  **[GE_3370577_15]** 

3. **Vernova's 2024 Margins and Onshore Wind**  
   **Q:** What are the expectations for Vernova's 2024 margins?  
   **A:** Vernova anticipates margin improvement in 2024, with Onshore Wind expected to reach **high single-digit margins** and Grid at **mid-single-digit margins**.  **[GE_3370577_16]**  Gas Power is already at low double-digit margins and continues to accrete.  **[GE_3370577_16]**  Challenges remain in Offshore Wind due to a tough backlog.  **[GE_3370577_16]** 

4. **GE9X Impact on Free Cash Flow**  
   **Q:** How will GE9X production affect free cash flow?  
   **A:** GE9X production will be a financial headwind in 2024 as the company begins shipping engines in the back half of the year, ahead of EIS in May 2025.  **[GE_3370577_13]**  While it negatively impacts free cash flow, it's not a material driver overall; GE expects over **$5 billion** of free cash flow in 2024.  **[GE_3370577_13]** 

5. **First Quarter Guidance Details**  
   **Q:** Can you detail first-quarter guidance by business?  
   **A:** Aerospace revenue is expected to be up mid-teens in Q1, with margins flat to slightly up year-over-year.  **[GE_3370577_14]**  Renewables improvement will be back-end loaded; Q1 will look similar to Q4.  **[GE_3370577_14]**  Power anticipates low single-digit growth with some margin expansion.  **[GE_3370577_14]**  Corporate expenses will be fully absorbed by the businesses, effectively being zero at the corporate level in Q1.  **[GE_3370577_14]** 

6. **2024 Commercial Services Outlook**  
   **Q:** What underpins the mid-teens growth in commercial services?  
   **A:** The mid-teens services growth in 2024 is based on a **6% increase in departures** and a catch-up in shop visits, expected to be up low double digits to mid-teens.  **[GE_3370577_11]**  Internal shop visits will grow more rapidly than spare parts, with spares growth moderating below shop visit growth.  **[GE_3370577_11]**  Pricing benefits and work scope improvements also contribute.  **[GE_3370577_11]** 

7. **LEAP Deliveries and Spares Ratio**  
   **Q:** Are LEAP deliveries and spares ratio changing in 2024?  
   **A:** LEAP unit growth is anticipated to increase by **20% to 25%** in 2024.  **[GE_3370577_9]**  Installations will get ahead of spares, causing the spares ratio to moderate towards the historic average.  **[GE_3370577_9]** 

43287c5b834bcac93cd0339722b7a892e045852ce7d73e206894b7b1ae1b8a27

- **Significant supply chain constraints are impacting GE's ability to deliver new LEAP engines**, with deliveries lower than expected and challenges at **15 supplier sites accounting for 75% of delivery issues**.  **[GE_3393923_9]** **[GE_3393923_7]**  This has led to **disappointing new unit deliveries and lower equipment revenue**.  **[GE_3393923_9]** **[GE_3393923_8]**
- **Original Equipment (OE) volume was weak**, with **Q2 LEAP engine deliveries down by 70 units compared to Q1**, contributing to a **decline in equipment revenue by 11%**.  **[GE_3393923_8]** **[GE_3393923_2]** **[GE_3393923_3]**  Despite efforts, the **ramp-up in new engine output has been slower than anticipated**.  **[GE_3393923_9]** **[GE_3393923_7]**
- **Airlines extending the life of older engines due to delays in new engine deliveries** may reduce the demand for new engines, potentially impacting GE's future sales.  **[GE_3393923_6]**  Additionally, **airline profit warnings** could signal a future slowdown in demand impacting GE's business.  **[GE_3393923_15]**

c67d8c93fc31fadac0e9a62a231353fd7bf5ea392cdfca0dff56a2715886493d

1. **LEAP Delivery Guidance**  
   **Q:** Why was LEAP delivery guidance reduced?  
   **A:** GE reduced its LEAP engine delivery growth guidance from **20%–25%** to **10%–15%**, primarily due to alignment with customer needs, including Boeing's adjusted schedules. The company emphasizes a focus on safety and quality as it ramps up production in coordination with its customers.  **[GE_3380236_10]** 

2. **Margin Outlook**  
   **Q:** How will lower LEAP volume affect margins?  
   **A:** With the pushout of LEAP volume, the anticipated **2-point** margin headwind from LEAP OE ramp and increased R&D is now marginally lower. This adjustment, along with a strong first quarter, allows GE to raise its full-year profit guidance by **$150 million** to a range of **$6.2 billion to $6.6 billion**, reflecting mid-teens profit growth and more than **30%** EPS growth.  **[GE_3380236_12]** 

3. **Orders Growth**  
   **Q:** Is orders growth driven by volume or pricing?  
   **A:** The **34%** increase in orders is primarily driven by volume growth, with pricing improvements also contributing. Commercial Engines & Services orders rose by **78%**, and Defense Propulsion & Technologies orders increased by **72%**, mainly due to base volume growth.  **[GE_3380236_11]** 

4. **Free Cash Flow Guidance**  
   **Q:** Is there upside to the free cash flow guidance?  
   **A:** GE Aerospace doubled its free cash flow year-over-year in the first quarter, driven by earnings growth and working capital improvements. Given the strong start and increased operating profit guidance, the company anticipates free cash flow to be well above **$5 billion** for the year, with a conversion rate greater than **100%**.  **[GE_3380236_20]** 

5. **Shop Visit Growth**  
   **Q:** Are there challenges to achieving shop visit growth guidance?  
   **A:** Despite first-quarter shop visit growth of **3%**, GE is confident in meeting its full-year guidance of low to mid-teens growth. Supply chain constraints impacted the first quarter, but improvements in material flow and operational focus are expected to drive increased shop visits in the remainder of the year.  **[GE_3380236_15]** 

6. **CFM Shop Visit Peak**  
   **Q:** Will LEAP ramp delays impact CFM shop visit peak?  
   **A:** Delays in ramping up LEAP production may push the peak of CFM56 shop visits beyond **2025**. Airlines are utilizing existing fleets more due to delivery constraints, leading to increased aftermarket demand and potentially higher shop visits in future years.  **[GE_3380236_14]** 

7. **LEAP Spare Engines**  
   **Q:** How will lower LEAP production affect spare engines and suppliers?  
   **A:** GE expects the LEAP spare engine ratio to continue declining gradually over the next few years, with the full-year ratio down compared to **2023**. Despite lower LEAP volumes, GE is preparing suppliers for long-term demand and is not significantly slowing down production ramp efforts.  **[GE_3380236_17]** 

8. **RISE Program**  
   **Q:** Could RISE make GE the sole provider for next-gen narrow-bodies?  
   **A:** GE is advancing the RISE program's technologies and closely collaborating with airframers to achieve a **20%** improvement in fuel consumption. While market dynamics are uncertain, GE intends to lead with innovation and be at the forefront of next-generation narrow-body engines.  **[GE_3380236_19]** 

9. **Contracts Transition**  
   **Q:** Will LEAP engines shift from CSAs to T&M contracts?  
   **A:** GE anticipates a gradual shift from Contractual Service Agreements (CSAs) to Time & Material (T&M) contracts for LEAP engines over the decade. By **2030**, GE expects to service **60%** of LEAP shop visits in-house, focusing on increasing the T&M population to support cash flow conversion goals.  **[GE_3380236_18]** 

10. **Freight Market Impact**  
    **Q:** How is freight demand affecting the CES business?  
    **A:** Increased air cargo demand, partly influenced by activity in the Middle East, has led GE to improve its freight outlook from a mid-single-digit decline to positive low single-digit growth. This benefits GE's wide-body engine exposure, with a more significant financial impact expected in **2025**.  **[GE_3380236_16]** 

11. **$650 Million Investment**  
    **Q:** What are the benefits of the $650 million investment?  
    **A:** GE is investing **$650 million** to enhance its domestic manufacturing footprint. The investment focuses on operationalizing FLIGHT DECK, expanding capacity, and advancing technologies like additive manufacturing and ceramic matrix composites to meet future demand.  **[GE_3380236_21]** 

12. **Customer Tone**  
    **Q:** Is GE gaining ground in narrow-body engine competitions?  
    **A:** GE is encouraged by increasing win rates in the narrow-body market over recent years. The company remains focused on securing new business and continues to work hard despite ongoing supply chain challenges and competition.  **[GE_3380236_22]** 

4b26c5efa0e0d67ebd3ddb25e140d309ac2a360a479dc49b7253c67f00087fa0

1. **2025 EBIT Growth**

   **Q:** Will 2025 EBIT grow $1B off higher 2024 base?

   **A:** Management is reassessing the 2025 outlook due to the higher 2024 EBIT guidance, which has increased by **$550 million** since March.  **[GE_3403169_6]**  They are working through updated plans and will provide detailed guidance in January.  **[GE_3403169_6]**  They anticipate continued strong earnings and free cash flow for 2025.  **[GE_3403169_6]** 

2. **LEAP Output Constraints**

   **Q:** How will LEAP output be impacted in 2025?

   **A:** Despite supply chain challenges and transitioning to new HPT blades, GE expects to support increased LEAP engine production in 2025.  **[GE_3403169_7]**  They reported an **18% sequential increase** in LEAP output in Q3.  **[GE_3403169_7]**  The new HPT blade will improve performance and unlock capacity, positively affecting 2025 production.  **[GE_3403169_7]** 

3. **777X Delay Impact**

   **Q:** What are the implications of the 777X delay?

   **A:** The Boeing 777X delay has minimal operational impact on GE Aerospace.  **[GE_3403169_8]**  GE continues testing the GE9X engine and preparing for production ramp-up.  **[GE_3403169_8]**  They have started delivering engines to Boeing and expect the program to be profitable by **2030** after significant cost reductions.  **[GE_3403169_8]** 

4. **2025 OE Losses and LEAP Profit**

   **Q:** Will OE losses decrease and LEAP profitability improve?

   **A:** With lower engine output than expected in March, OE losses should reduce in 2025.  **[GE_3403169_12]**  LEAP profitability is improving, with durability expected to reach CFM56 levels in 2025.  **[GE_3403169_12]**  Growing spare parts sales to external networks are enhancing profitability.  **[GE_3403169_12]** 

5. **Customer Concessions**

   **Q:** Are penalties affecting financials due to delivery delays?

   **A:** GE is accruing for any required customer concessions, but these are not material in 2024.  **[GE_3403169_9]**  Deliveries are improving sequentially, and they expect continued progress as supply chain challenges ease.  **[GE_3403169_9]** 

6. **Shop Visits and Services Growth**

   **Q:** Why were shop visits down despite higher LEAP visits?

   **A:** Supply chain challenges impacted shop visits for other engines.  **[GE_3403169_11]**  Spare parts sales increased, balancing internal and external network needs.  **[GE_3403169_11]**  Entering Q4 with a higher backlog, GE is confident in its services growth outlook.  **[GE_3403169_11]** 

7. **DPP Margins and 2025 Outlook**

   **Q:** What's driving DPP margin pressure into 2025?

   **A:** Increased R&D investment for next-gen programs is pressuring margins.  **[GE_3403169_10]**  Despite this, a strong backlog supports mid- to high single-digit growth in 2025, with profit expected to grow faster than revenue, driving margin expansion.  **[GE_3403169_10]** 

8. **CFM Shop Visit Expectations**

   **Q:** How will CFM shop visits trend in coming years?

   **A:** The peak of CFM shop visits is expected in 2025, sustaining at that level until 2027 before declining.  **[GE_3403169_14]**  Revenue growth will continue due to heavier work scopes and GE90 engines entering second shop visits, with **75%** of the fleet yet to do so.  **[GE_3403169_14]** 

9. **777X Headwind in 2025**

   **Q:** Is there a 777X headwind in 2025 estimates?

   **A:** There is a GE9X headwind in the 2025 projections due to the 777X delay.  **[GE_3403169_16]**  The impact is not yet quantified as they are working with Boeing on 2025 volumes.  **[GE_3403169_16]**  Program losses are expected to peak later in the decade, turning profitable by **2030**.  **[GE_3403169_16]** 

10. **HPT Blade Certification**

    **Q:** Will HPT blade certification boost Q4 LEAP output?

    **A:** The new HPT blade is in production, but certification timing will only modestly impact Q4 output.  **[GE_3403169_13]**  It's an important factor but not the sole driver; improvements are multifaceted.  **[GE_3403169_13]** 

11. **Supplier Capacity Improvements**

    **Q:** How will FLIGHT DECK improve supplier capacity?

    **A:** The FLIGHT DECK initiative led to an **18%** increase in output at priority sites, but more is needed.  **[GE_3403169_15]**  By collaborating with suppliers and investing **$1 billion** in the MRO network over five years, GE aims to unlock additional capacity to meet demand.  **[GE_3403169_15]** 

536942334c6639f23ca50db0660c03b864e7c61cabd56387d8b448476b19b2d0

- **GE is effectively unlocking supply chain constraints through their FLIGHT DECK approach, leading to increased output by 18% from priority suppliers in Q3, which will support improved deliveries in Q4 and is foundational for growth in 2025.**  **[GE_3403169_15]**
- **GE raised their earnings and cash guidance, with free cash flow expected to be $5.6 to $5.8 billion, due to strong year-to-date performance and a robust services outlook.**  **[GE_3403169_11]**
- **Spare parts sales are growing, with GE seeing higher sales to external networks and implementing price increases, which supports their confidence in holding their services growth outlook for the year.**  **[GE_3403169_12]**

0c11a3677da4aa92a7876b81b33633c593f91c50f789997aed3400280ade3dcc

- **Strong Services Growth Driving Increased Profitability:** GE's Commercial Engines and Services (CES) reported services orders up **36%** in the second quarter, indicating robust demand in the aftermarket $ **[GE_3393923_15]** $. This momentum is expected to drive services growth higher in the second half, with overall mid-teens growth projected, supported by increased shop visits and spare parts demand $ **[GE_3393923_14]** $. As a result, GE is raising profit expectations for the full year by **$150 million to $200 million**, demonstrating increasing profitability $ **[GE_3393923_8]** $.
- **Extended Life of CFM56 Engines Enhances Aftermarket Revenue:** Airlines are extending the lives of older aircraft and engines, leading to sustained utilization of GE's **CFM56** engines, which is expected to sustain higher shop visits for an extended period $ **[GE_3393923_6]** $. GE anticipates that peak shop visits projected for 2025 will **plateau for another couple of years** before declining, with third and even fourth shop visits occurring $ **[GE_3393923_6]** $. This prolonged demand boosts the aftermarket revenue stream and signals strong future cash flows.
- **Innovative Technology Development with Growing Customer Interest:** GE is making significant progress on its **RISE** (Revolutionary Innovation for Sustainable Engines) program, particularly with the **open fan engine** technology aiming for a **20% improvement in propulsive efficiency and emissions reduction** $ **[GE_3393923_16]** $. Customer interest in RISE is growing, especially among airline CEOs focused on sustainability. This positions GE well for future growth as the industry shifts towards more sustainable solutions $ **[GE_3393923_16]** $.

6a748111b79292cb5fe123ddeb546d5a9357bb624a491941b9d715a5d9b6cb91

1. **LEAP Engine Delivery Outlook**  
   **Q:** Why are LEAP deliveries lower, and what's the new outlook?  
   **A:** LEAP engine deliveries were lower than expected due to supply chain challenges, particularly in April and May.  **[GE_3393923_9]**  GE is adjusting its full-year LEAP delivery outlook to be between **flat and up 5%**, which is lower than previously anticipated but still represents modest growth.  **[GE_3393923_9]**  They are focused on improving deliveries and expect a healthier, more stable, higher exit rate by the end of the year.  **[GE_3393923_9]** 

2. **LEAP Profitability Timing**  
   **Q:** Has the LEAP breakeven timing shifted due to lower volumes?  
   **A:** The timing has **not shifted**; GE still expects the LEAP engine to be profitable in **2024** and the program to break even in **2025**.  **[GE_3393923_17]**  LEAP services are performing better than originally thought, and they are making progress on durability improvements.  **[GE_3393923_17]** 

3. **Supply Chain Constraints**  
   **Q:** What details can you share on supplier bottlenecks?  
   **A:** GE is working collaboratively with **9 suppliers** across **15 sites** that are causing delays.  **[GE_3393923_7]** **[GE_3393923_12]**  Two-thirds of these sites have nearly doubled their sequential outputs, but challenges remain.  **[GE_3393923_7]**  They emphasize deep problem-solving to unlock constraints and increase capacity.  **[GE_3393923_12]** 

4. **CES Margin Improvement**  
   **Q:** What drove the strong CES margins despite lower LEAP deliveries?  
   **A:** Despite weaker original equipment volume, CES margins improved due to strong service revenue recovery and heavier work scopes in shop visits.  **[GE_3393923_8]**  Services growth led to an increase in profit expectations for the full year by **$150 million to $200 million** at the midpoint of guidance.  **[GE_3393923_8]** 

5. **Inventory Management Strategy**  
   **Q:** How are you managing inventory levels amid supply chain issues?  
   **A:** GE has seen significant inventory growth in the first half, about **$1.2 billion**, which is **$0.5 billion higher** than the first half of last year.  **[GE_3393923_11]**  They are not slowing down suppliers who are performing well but view inventory as an investment to ensure a predictable ramp.  **[GE_3393923_11]**  They expect inventory growth to slow in the second half.  **[GE_3393923_11]** 

6. **Services Growth Outlook**  
   **Q:** Can services growth accelerate next year?  
   **A:** Services orders grew **mid-30%** in Q2 and are expected to continue growing.  **[GE_3393923_14]**  GE anticipates services growth to be higher in the second half than in the first half, projecting mid-teens growth consistent with future years.  **[GE_3393923_14]** 

7. **Impact of Airline Profit Warnings**  
   **Q:** Any effects from recent airline profit warnings?  
   **A:** GE has not seen any impact on its business from airline profit warnings.  **[GE_3393923_15]**  Services orders were up **36%** in CES in Q2, and spare parts backlog is around **90%** filled for Q3.  **[GE_3393923_15]**  Demand remains strong in both aftermarket and new engines.  **[GE_3393923_15]** 

8. **Extending Life of Older Engines**  
   **Q:** Are customers increasing shop visits for older engines?  
   **A:** Yes, airlines are extending the lives of older **CFM56** engines, leading to higher shop visits and potential third or fourth overhauls.  **[GE_3393923_6]**  This is expected to benefit GE's aftermarket volume and scope.  **[GE_3393923_6]** 

9. **RISE Program Development**  
   **Q:** What's the progress on the RISE engine program?  
   **A:** Customer interest in the **RISE** engine program is growing.  **[GE_3393923_16]**  GE completed significant tests, including a successful first ingestion test with the open fan blade and over **250 component-level tests**.  **[GE_3393923_16]**  They aim for a **20% improvement** in propulsive efficiency and emissions reduction.  **[GE_3393923_16]** 

10. **Second Half Outlook**  
    **Q:** How will the second half shape up in terms of growth?  
    **A:** GE expects year-over-year growth to be similar between the first and second half, with higher growth in Q4 as services and original equipment ramp up.  **[GE_3393923_10]**  Margins will be higher in Q3 versus Q4 due to shipment impacts.  **[GE_3393923_10]**  They've had a better start to Q3, with July engine shipments significantly higher than in April.  **[GE_3393923_10]** 

d63a57d3ed7c4dad2a32f889d64226bcdbfe8762a92dcbf2478d063e5febb7bf

- **Lowered LEAP engine delivery growth guidance to 10%-15% from 20%-25%**, potentially indicating supply chain constraints or demand issues affecting production capacity.  **[GE_3380236_10]**
- **High inventory levels due to material availability challenges**, leading to increased work-in-progress and trapped inventory, which may hinder GE's ability to reduce inventory as planned and impact cash flow.  **[GE_3380236_20]**
- **Expected margin pressure in the second half of the year**, as equipment growth ramps up, including GE9X shipments, and services mix shifts towards shop visits, resulting in lower year-over-year profit growth compared to the first half.  **[GE_3380236_13]**

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- *1. GE Aerospace anticipates high-teens growth in commercial engines in 2024, with **LEAP engine deliveries expected to increase by 20% to 25%**, driving substantial revenue growth.  **[GE_3370577_9]** **
- *2. GE Aerospace expects **mid-teens growth in commercial services** in 2024, supported by a **6% increase in departures**, higher shop visits up **low double digits to mid-teens**, and benefits from pricing and work scope improvements.  **[GE_3370577_11]** **
- *3. GE Vernova projects substantial profit and free cash flow growth in 2024, aiming for **$700 million to $1.1 billion** in positive free cash flow, up from **$600 million** in 2023, driven by EBITDA growth and improved working capital.  **[GE_3370577_10]** **

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- **Supply chain challenges are causing delays in engine deliveries and services**, leading to **deliveries below plan and expectations** and creating a **backlog of shop visits** that need to be completed.  **[GE_3403169_9]** **[GE_3403169_11]**
- **LEAP engine deliveries are expected to be down year-over-year**, with supply chain constraints, the Boeing strike, and the transition to new HPT blades potentially impacting future output and growth.  **[GE_3403169_7]**
- **Significant investments are required to meet demand**, including a planned **$1 billion over the next 5 years** for MRO network expansion, which may strain resources.  **[GE_3403169_15]**

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- GE Aerospace margins are expected to be flat year-over-year in 2024 despite revenue growth, due to margin pressure from increased costs associated with LEAP engine ramp, introduction of 9X engines, and incremental R&D investments, resulting in about **2 points of margin pressure**.  **[GE_3370577_17]** **[GE_3370577_15]**
- The Renewables segment's profit improvement is **back-end loaded**, with the first quarter expected to be similar to the weak fourth quarter, delaying profitability improvements. Additionally, incremental corporate expenses are being absorbed by Vernova, impacting margins.  **[GE_3370577_14]**
- GE Vernova's free cash flow improvement depends heavily on successful execution of Offshore Wind projects, which is challenging due to a **tough offshore backlog of $4 billion** to be executed over two years, posing risks to cash flow targets.  **[GE_3370577_10]** **[GE_3370577_16]**

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General Electric Co (GE)

Financials