The companies on the Global 500 employ 70.2 million people, and their revenue represents more than one-third of the world’s GDP.

Fortune Global 500

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

AI is a major force shaping this year’s list—but it’s far from the only story.

World's Most Admired Companies

The corporations on our annual list of the world's 500 largest companies combined to generate $41.7 trillion in revenue over the past year.

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Leaders in all industries rely more than ever on Big Tech—and appreciate the giants that deliver, at scale, without drama.

The corporations on our annual list posted aggregate revenues of $41 trillion for the second year in a row.

Industries included in the sector are electrical equipment and industrial machinery.

Fortune Sector Leaders: Industrials

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

F500-2023-052-General-Electric

In January 2023, the once mighty American conglomerate successfully executed the first major step in a corporate restructuring plan publicly outlined in November 2021, cleaving off its health care division into an independent company: GE HealthCare. 
<ul> 
 	<li>Following a sudden collapse in stock price in 2017 under CEO Jeff Immelt, General Electric, now led by Larry Culp, devised a strategy to divide itself into three separate, publicly traded entities focused, respectively, on aerospace, health care, and energy and power.</li> 
 	<li>Following GE HealthCare’s spinoff, GE’s aerospace and energy and power companies are set to become independent in 2024.</li> 
 	<li>GE's renewable energy business continued to face supply-chain and inflationary pressures in 2023; it laid off 20% of its U.S. onshore wind workforce in October 2022.</li> 
</ul>

Aggregate sales hit $37.8 trillion last year—an increase of 19%, the highest annual growth rate in the list’s history.

This year’s Fortune 500 marks the 68th running of the list.

F500 2022-General Electric

General Electric continues to reshape itself as its leaders slim down what was once one of America’s biggest conglomerates. In November 2021 the company announced what will likely amount to its final breakup: a plan to split into three separate companies focused on aircraft engines, health care, and energy and power, respectively. The health care and energy spinoffs are expected to be completed by the end of 2024. In the meantime, GE remains a major employer and a significant player in green energy, thanks to its leading role in such products as wind turbines and energy-efficiency software. On the latter front, GE’s software arm in January 2022 acquired Opus One, a Canadian startup that helps utilities optimize energy planning.

Total revenue for the world’s biggest companies fell 4.8% to $31.7 trillion this year—the first decline in half a decade.

G500 104 GENERAL ELECTRIC

General Electric continues to move forward on a long, bumpy road as it struggles to recover from its 2017 collapse. CEO Larry Culp, the first outsider CEO in GE’s 132-year history, continues his strategy of making the company simpler and more stable, focusing on four businesses: carbon-fueled power generating equipment, renewable energy, jet engines, and health care. All but renewable energy got walloped by the pandemic—especially the jet engine business, as airlines virtually shut down. GE has been gradually selling off its stake in the Baker Hughes oilfield services company and agreed in early 2021 to sell its aircraft leasing business, further focusing the company and raising cash to pay down debt.

This year’s Fortune 500 marks the 67th running of the list.

F500-2021-38-General Electric

This year's Fortune Global 500 generated $33.3 trillion in revenues and $2.1 trillion in profits.

G500-2020-077-General-Electric

GE is still in rescue mode more than three years after its historic collapse began in 2017. The epicenter of the disaster was GE’s power operation, which makes electricity-generating turbines and which continued to shrink in 2019. The renewable energy business booked a big loss last year and continues to suffer as rock-bottom oil prices sap demand. Even the company’s longtime stalwart, jet engines, faces serious headwinds. While the division delivered two-thirds of GE’s profits, Boeing’s 737 Max travails, followed by the coronavirus pandemic, have slowed its progress. Health care, at least, has performed well. CEO Larry Culp faces years more work before this rescue is accomplished. It could use a little luck, too.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-033-GE

GE is still in rescue mode more than three years after its historic collapse began in 2017. The epicenter of the disaster was GE’s power operation, which makes electricity-generating turbines and which continued to shrink in 2019. The renewable energy business booked a big loss last year and continues to suffer as rock-bottom oil prices sap demand. Even the company’s longtime stalwart, jet engines, faces serious headwinds. While the division delivered two-thirds of GE’s profits, Boeing’s 737 Max travails, followed by the coronavirus pandemic, have slowed its progress. Healthcare, at least, has performed well. CEO Larry Culp faces years more work before this rescue is accomplished. It could use a little luck, too.

This year's Fortune Global 500 generated $27.7 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 65th running of the list.

Here are the World's Most Admired Companies for 2018 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 64th running of the list.

Here are the World's Most Admired Companies for 2017 as ranked in their industries. See who made the list.

This year's Fortune 500 marks the 63rd running of the list.

Here are the World's Most Admired Companies for 2016 as ranked in their industries. See who made the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

This year's Fortune 500 marks the 62nd running of the list.

Here’s our look at 50 companies that do well by doing good.

Change the World

Business insiders have spoken: Asked which companies they most admire, more than 4,100 executives, directors, and analysts chose these top 50 All-Stars.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Sector

Industry

Current All-Star Rank

Previous All-Star Rank

Industry Rank

Previous Industry Rank

Overall Score

Innovation

People Management

Use of Corporate Assets

Social Responsibility

Quality of Management

Financial Soundness

Long-Term Investment Value

Quality of Products/Services

Global Competitiveness

Key Financials (last Fiscal Year)

Revenues ($M)

Profits ($M)

Assets ($M)

Total Stockholder Equity ($M)

Profit Ratios

Profit as % of Revenues

Profits as % of Assets

Profits as % of Stockholder Equity

Earnings Per Share (last Fiscal Year)

Earnings Per Share ($)

EPS % Change (from prior fiscal year)

EPS % Change (5 year annual rate)

EPS % Change (10 year annual rate)

Total Return

Total Return to Investors (last year)

Total Return to Investors (5 year, annualized)

Total Return to Investors (10 year, annualized)

As of May 2025, the legendary General Electric, or GE, which was founded in 1892, completed its transformation from a diversified conglomerate into three distinct publicly traded entitites: GE Aerospace, GE Vernova, and GE HealthCare. GE Aerospace kept the ticker GE. It designs and produces commercial and defense aircraft engines; integrated engine components; as well as electric power and mechanical aircraft systems. It also offers aftermarket services to support its products. The company operates in Europe, Asia, the Americas, the Middle East, and Africa.

Q2 2026

Q1 2026

Q4 2025

Q3 2025

Q2 2025

Q1 2025

Q4 2024

GE Aerospace (GE): Company Profile, Stock Price, News, Rankings

legacy

GE Aerospace

ge aerospace

Good day, ladies and gentlemen, and welcome to the GE Aerospace 4th Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen only mode. My name is Liz, and I will be your conference coordinator today. If you experience issues with the webcast slides refreshing or there appears to be delays in the slide advancement, please hit F5 on your keyboard to refresh. As a reminder, this conference is being recorded.

I would now like to turn the program over to your host for today's conference, Blair Shor, Head of Investor Relations. Please proceed.

Thanks, Liz. Welcome to GE Aerospace's 4th quarter and full year 2024 earnings call. I'm joined by Chairman and CEO, Larry Culp and CFO, Rahul Gai. Many of the statements we're making are forward looking and based on our best view of the world and our businesses as we see them today. As described in our SEC filings and website, those elements may change as the world changes.

Additionally, Larry and Rahul, consistent with prior quarters, will speak to total company and corporate financial results and guidance today on a non GAAP basis. Now over to Larry.

Blair, thank you, and good morning, everyone. Head of Investor Relations, that has a nice ring to it, Blair. I hope everybody saw our announcement last week relative to Blair's promotion. She's excited. We're excited.

2024 was the year for the history books at GE Aerospace. In April, we became a stand alone public company, the culmination of GE's multiyear transformation. Nothing has been more front and center than our purpose, inventing the future of flight, lifting people up and bringing them home safely. Those last four words remain our top priority with nearly a 1000000 passengers in flight at this very moment with our technology under wing. We launched Flight Deck, our proprietary lean operating model to better serve our customers through our relentless focus on safety, quality, delivery and cost in that order.

Seeing our teams in action through the year with Flight Deck from Malaysia to Wales to Asheville and elsewhere truly was energizing. Commercial momentum continues. We signed several key services agreements and received orders for more than 4,600 commercial and defense engines. In narrow bodies, this included American Airlines commitment for 85 new Boeing 737 MAX Jets powered by our LEAP-1B. In wide bodies, we were honored to add a new GE and X customer, British Airways.

And in defense, we received an order from the Polish Armed Forces for 210 T700 engines to power the 96 Boeing Ah-64E Apache Guardian Helicopters. To close the year, we received certification of the LEAP-1A HBT durability kit. Combined with the 3 prior durability enhancements that are performing well in the field, it's designed to increase LEAP time on wing by more than twofold current levels and achieve parity with the CFM56's performance today. Just this week, in fact, we shipped our 1st retrofit engines to customers with the new hardware. It's also easier to produce supporting our output trajectory going forward.

At the same time, we've advanced significant technology milestones that will propel GE Aerospace into the future. Our RISE program with CFM completed more than 250 tests on our way to developing a full scale open fan engine. We recently announced that in collaboration with Boeing, NASA and the Oak Ridge National Laboratory, we will model the integration of an open fan engine design on an aircraft wing. And our defense team successfully demonstrated a hybrid electric propulsion system rated at 1 megawatt with the U. S.

Army. This represents a meaningful increase in power generation, enabling us to advance hybrid electric propulsion applications. But perhaps more important than what we accomplished in 2024 is how we did it. And my thanks this morning go out to our entire team for their unwavering commitment to delivering for our customers. GE Aerospace delivered a standout year financially, with revenue up double digits, profit up $1,700,000,000 and free cash flow of $1,300,000,000 And we finished strong surpassing our most recent guide.

In the Q4, robust demand continued. Orders were up 46% and revenue grew 16%, with double digit growth in Services and Equipment for both orders and revenue. Profit was up nearly 50% and EPS more than doubled. Free cash flow was up over 20% with conversion above 100%. At Commercial Engines and Services, our 4th quarter orders were up 50%, revenue was up 19% and profit increased 44%, while deliveries progressed.

And for the full year demand remained robust with services orders up 30%, total revenue up double digits and profit up 25% to $7,100,000,000 In Defense and Propulsion Technologies, 4th quarter orders were up 22% and Defense units nearly doubled sequentially. For the full year, revenue was up 6% and profit increased 17% to $1,100,000,000 Looking ahead to 2025, we're maintaining this momentum as we aim to deliver another year of substantial revenue, EPS and cash growth. We expect departures growth of mid single digits and increased military spending. This supports solid low double digit revenue growth, including growth in CES and DPT. We expect profit in the range of $7,800,000,000 to $8,200,000,000 This combined with a lower share count will translate to EPS in the range of $5.10 to $5.45 up 15% at the midpoint.

For free cash flow, we expect to generate $6,300,000,000 to $6,800,000,000 with conversion remaining robust above 100%. And given the strength of our balance sheet, we're increasing our share repurchases to $7,000,000,000 and planning to raise our dividend by 30%, subject, of course, to Board approval. Overall, GE Aerospace is, I believe, an exceptional franchise with a tremendous financial profile. Stepping back, between 2023 2025, taking the midpoint of our guide, we expect to grow profit $2,500,000,000 and free cash flow nearly $2,000,000,000 over this 2 year period. Today, we're focused on keeping our customers' fleets flying and delivering on our new engine backlog.

Our team is using Flight Deck to tackle supply chain constraints head on. From the first half to the second half of twenty twenty four, we delivered meaningful improvement as material inputs increased 26% across our priority supplier sites. This in turn supported CES Services revenue growth of 17% and Engine Unit growth of 18%, with Defense and Commercial both up double digits, including LEAP up 12%. We're encouraged by our progress more recently in the Q4, where CES services revenue increased 12% year over year, supported by expanded shop visit work scope and spare parts growth. But this was lighter than we expected due to internal lower internal shop visit volume given material constraints.

Total engine units improved up 3% with defense up 20%. But commercial was roughly flat with LEAP down 5%. We'll need to drive further sustainable improvements to meet 25's demand and this is exactly where Flight Deck is so important. Earlier last year, our priority suppliers shipped only half of their committed targets to us. Today, they're shipping over 90% of the committed volume.

At a recent joint Kaizen with a priority supplier, we focused on eliminating waste, achieving a 50% increase in output, 50%. And throughout 2024, we deployed over 550 of our supply chain and engineering resources into that same supply base, demonstrating that we're at our best when we're operating as one team. Building off this momentum, we're bringing together our engineering and supply chain teams into one new organization, Technology and Operations, which will be led by Muhammad Ali. With shared accountability across the full value chain, this cross functional team will enable faster problem solving to help improve deliveries. These actions combined with our close alignment on demand schedules will enable higher material inputs in 2025 and importantly beyond.

Finally, we've expanded LEAP aftermarket capacity by approximately 40% in 2024. This will support the growing fleet of 3,300 LEAP powered aircraft with now 10,000 engines in backlog. Here's how. 1st, we're eliminating waste and reducing turnaround time using Flight Deck. For example, our on wing support team redesigned the LEAP engine flow increasing output by 50% for the year.

This contributed to LEAP internal shop visit growth of more than 20% in the Q4 alone. 2nd, we're investing more than $1,000,000,000 in our internal MRO facilities over the next 5 years. We're growing our repair technologies, which will help lower the cost of ownership and provide faster turnaround times. Our recently opened Services Technology Acceleration Center here in Ohio will be a key enabler in deploying repairs across our global MRO network. And 3rd, we're strengthening our LEAP third party network.

Last year, 5 premier MROs completed around 10% of total LEAP shop visits. This is critical experience for them as their volume increases further in 2025. Overall, we're entering 2025 with a stronger foundation to service and deliver our engines faster with the highest possible levels of safety and quality. Turning to slide 7. Demand for our services and products remains robust highlighted by orders up 46% in the 4th quarter.

At CES and narrow bodies, El Al Israel Airlines confirmed its commitment for 20 737 MAXs with LEAP-1B engines underway. We've also extended service contracts, including a 10 year engine maintenance agreement with Fly Dubai for their CFM56 powered aircraft. And notably, the Airbus 321XLR powered by our LEAP-1A engines completed its inaugural commercial long haul flight. Our engines are providing airlines with greater route flexibility and overall operational efficiency. In wide bodies, Royal Jordanian announced an order for 18 GE NX-1Bs plus spares to power their expanded Boeing 787-nine fleet.

And China Airlines also announced an agreement for 10 Boeing 777-9s with the GE-9X underwing. In DPT, we're building on our leading defense programs. We received orders under a contract with the U. S. Army valued up to $1,100,000,000 for the continued production of T700 engines through 2029.

The new T700s will power the Sikorsky H-sixty, the Bell H-one and the Boeing Ah-sixty four platforms. In addition to expanding our extensive installed base, we're enhancing our customer solutions. We signed an agreement to acquire NorthStar Aerospace, a leading manufacturer of mission critical gears and shafts. NorthStar will be highly complementary to our Avio Aero business, providing a U. S.-based presence in this market and adding new programs and capabilities to deliver complex flight critical parts.

Stepping back, I couldn't be prouder about what we're building as GE Aerospace as we advance flight for today, tomorrow and the future. Rahul, over to you.

Thank you, Larry, and good morning, everyone. We closed out 2024 with another strong quarter. Orders were up 46% with significant demand for both services and equipment. Revenue was up 16%, with growth in CES and TPT. Profit was $2,000,000,000 up 49%, driven by services volume, favorable mix and price.

Margins were up 4.50 basis points to 20.1 percent. EPS of $1.32 more than doubled from profit growth and a reduced tax rate. Free cash flow was $1,500,000,000 up 21% from higher earnings. Working capital was a source, primarily from long term service contract billings. While accounts receivables increased, day sales outstanding were down 5 days year over year.

Given the ongoing material availability challenges, inventory increased, although at a lower rate than prior quarters. For the year, orders were up 32%, including services orders up 30%. Revenue was up 10% with growth in both segments. Profit increased 30% to $7,300,000,000 with margins expanding 3 30 basis points to 20.7%, driven by Commercial Services. EPS increased 56 percent to $4.60 from significant profit growth, a lower tax rate and the absence of preferred dividend.

Free cash flow was up almost 30 percent to $6,100,000,000 with conversion over 120%. Taken together, we delivered significant growth across all key metrics, both in the quarter and the year. Looking closer at our businesses, starting with CES. In the quarter, orders were up 50% as services demand remained robust, while equipment accelerated. Our recent wins build on our backlog of $154,000,000,000 with about 90% of that backlog in services.

Revenue was up 19%, with services up 12%, driven by shop visit revenue, higher spare parts and price. Internal shop visit revenue, representing around 60% of services revenue grew double digits. Increased work scopes, higher pricing and engine mix more than offset shop visit volume that was down 3% due to material constraints. Spare parts revenue, representing roughly the other 40% was up from higher volume and price. Equipment grew 38%.

While we made progress, supply chain constraints impacted total deliveries, down 2%, including LEAP down 5%. For the year, LEAP deliveries were down 10%, in line with our latest expectations. Lower volume was more than offset by customer mix and price. In addition, given our growing fleets with high utilization, we caught up on spare engine deliveries to support airline fleet stability. Although the spare engine ratio was elevated in the Q4, overall LEAP life of program ratio through 2024 remains in low double digits.

Profit was $2,200,000,000 up 44 percent as spare parts volume increased shop visit work scope, mix and price more than offset inflation and investments. Margins expanded 490 basis points to 28.2%. Overall, CES delivered strong full year results with orders up 38%, revenue up 13% and profit growing 25 percent to $7,100,000,000 Margins expanded 250 basis points to 26.2%. Moving to DPT. Orders were up 22%, primarily driven by Defense and Systems.

Demand remains strong here as well, with Defense book to bill of 1.2x for the quarter and the full year. Our backlog for the segment is now at $18,000,000,000 up more than $1,500,000,000 year over year. Revenue grew 4%. Defense and Systems revenue was up 6%, driven by higher engine deliveries and price, partially offset by lower services. Defense units were up 20% year over year with more than 90% quarter over quarter.

Propulsion and Advil Technologies or PAT grew 2%, as lower commercial volume at Avio was more than offset by growth in other PAT businesses. Profit was up 2%, driven by improved pricing and productivity, partially offset by investments in next gen engines and inflation. Margins were down 20 basis points. Overall, a strong finish as full year orders were up 10%, revenue grew 6% and profit was up 17% to $1,100,000,000 with margin expansion of 110 basis points. A moment on corporate.

We made substantial progress to ensure our operations reflect the needs of GE Aerospace as a standalone company. Corporate cost including eliminations was about $860,000,000 for the year. Eliminations increased by $100,000,000 to approximately $470,000,000 from higher internal volume in PAT. Excluding eliminations, cost was down over a third to roughly $400,000,000 driven by lower functional expenses and higher interest income. We also fully exited our remaining stake in GE Healthcare this quarter.

And for the year, we returned more than 100% of our free cash flow to our shareholders, including $5,000,000,000 of share buyback and a dividend of around 30% of net income. Based on the strength of our performance and balance sheet, GE Aerospace is well positioned to compound shareholder returns for long term. Switching to our 2025 guide. Starting with CES, we expect mid teens revenue growth for the segment. We are now expecting services to be up low double digits to mid teens, up from our prior view of low double digits.

At the midpoint, we expect internal shop visit revenue to be up from higher work scope, improved pricing and high single digit shop visit volume growth, which has pushed to the right from 2024. We continue to expect low double digit spare parts revenue growth from mid single digit air traffic growth and pricing. We expect equipment up high teens from growth in engine volume, including LEAP deliveries up 15% to 20% and pricing, more than offsetting negative engine mix. We expect $7,600,000,000 to $7,900,000,000 of profit at CES, reflecting the benefit of services growth. This will be partially offset by the impact from increased R and D investments and higher 9x deliveries in the second half of the year.

We also expect a lower spare engine ratio. In DPT, we expect mid to high single digits revenue growth with increased defense units and profit in the range of $1,100,000,000 to $1,300,000,000 Higher defense deliveries are partially offset by self funded investments in the first half. Corporate costs are expected to be less than $1,000,000,000 Eliminations are expected to grow as internal BAT volume grows. In total, we expect another year of low double digit revenue growth for the company with profit in the range of $7,800,000,000 to $8,200,000,000 up about $750,000,000 or 10% at the midpoint over 2024. Turning to slide 12.

We expect EPS to be in the range of $5.10 to $5.45 up roughly 15% at the midpoint. About 80% of the improvement will be from higher profit. The balance will come through a reduction in the tax rate, which is expected to improve to below 20%. And the benefit from share repurchases, including the $5,000,000,000 executed in 2024 and an additional $7,000,000,000 expected in 2025. We expect to generate $6,300,000,000 to $6,800,000,000 of free cash flow, with year over year growth primarily from higher earnings.

Contributions from working capital and AD and A combined year over year will be more than offset by higher CapEx and cash tax payments. Overall, we expect another year of conversion that is solidly above 100%. Taken together, GE Aerospace is poised for another year of growth ahead. With that, Larry, I'll turn it back to you.

Perfect. Thank you. 2024 clearly was a strong 1st year for us as GE Aerospace. We grew revenue, earnings and cash significantly along with returning over $6,000,000,000 to shareholders. That performance was underpinned by our competitive advantages.

Our platforms are preferred by customers across the narrow body, wide body and defense sectors. Our industry leading services and technologies provide the highest levels of operational reliability, including greater efficiency time on wing and faster turnaround times. At the core of everything we do is safety, quality delivery in that order. And we're focused on unrivaled customer service and flight support across the industry's most extensive installed base with 70,000 engines. Our breakthrough innovations in both commercial and defense paved the way for more sustainable flight and Flight Deck, which connects our strategy to our results, enables us to deliver and create exceptional value for our customers and our shareholders.

We believe our path forward is clear. We're well positioned to deliver another year of substantial growth and deploy over 100 percent of our free cash flow to shareholders. Before we wrap our prepared remarks, I'd like to take a moment to express our support for all of those impacted by the fires in Southern California. Seeing our CF-six, CFM-fifty six and T-seven hundred engines powering many of the planes battling the fires, We feel a deep connection to our commitment to safety and hope that those fires can be contained soon. Blair, shall we go to Q and A?

Before we open the line, I'd ask everyone in the queue to consider your fellow analysts and ask one question, so we can get to as many people as possible. Liz, can you please open the line?

Our first question comes from Scott Deutschley with Deutsche Bank.

Rahul, can you refresh us on what the 2025 guide is assuming with respect to LEAP OE profitability? And then when LEAP OE achieves breakeven, do you foresee the profit trajectory flatlining from there? Or is it reasonable to think that LEAP OE could be a profit center on its own right as time goes on and you benefit from some of these recent pricing gains and operational efficiency initiatives? Yes.

So let me start and Larry can add. Obviously, it's been a really good year for LEAP overall. I can start with answering your question and Larry can comment on the operational improvements that we've driven here in LEAP. So first, Scott, it was a milestone year for LEAP. LEAP services became profitable in 2024 and the program becomes even breakeven in 2025, at OE following a year later in 2026.

So that was our prior expectation that continues to be our expectation today. And as we look at LEAP, how it performed during the year, the profitability for the program tended to be better than our initial expectations from higher external spare parts volume, better pricing, lower warranty expenses as some of those fixes are going in and more shop visits than we had initially expected. So that's our expectation. And the key milestone for 2025 is that our profitability and margins for the program are getting better from increase in shop visits and higher external spare parts volume. So and the OE performance improves despite more number of engines that we're going to ship.

And just to comment on the external services volume, in 2024, shop visits external shop visits were just north of 10%, and we expect that to increase to 15% in 2025. And on a sold basis, the shop visits that we have sold, about 25% of the shop visits are non GE Safran shop visits, and that will help future profitability. So overall, listen, if the program is on the right trajectory and as the program kind of breaks even this year, OE becomes profitable next year, I think the services growth trajectory that the program has with the installed base is just going to power the program. So we expected LEAP to be kind of in CFM56 levels by 2028, maybe CFM is performing a little bit better. So but that's the trajectory that the program is on that it's sometime in late towards the end part of this decade, LEAP and CFM are delivering the same amount of profit for the company.

I think you've covered the landscape there. Clearly, much of what we've talked about, Scott, just already this morning with respect to managing the supply base sets us up, particularly as we think about the ramps with LEAP. We would expect LEAP new units to be up 15% to 20% this year, more to come after that, right? So that installed base growth, that aftermarket opportunity that Rahul was really talking about is really a function of what we're doing currently with the installed base excuse me, the supply base that of course coupled with the progress that we made with the HBT at the end of the year on the 1A sets us up I think even more strongly in the marketplace. And we know the engine is performing well in the market.

I think we increased our share of cycles, what, 300 basis points in 2024. So we have a lot of good things in front of us. It's still, in many respects, early days for LEAP.

Our next question comes from Myles Walton with Wolfe Research.

Thanks. Good morning. Good morning, Myles. And congrats, Blair. Well deserved.

At the start of 2024, you were looking for about $1,000,000,000 of operating profit growth in 2025 versus 2024. The new guidance, as you mentioned, is $750,000,000 of growth. I'm not oblivious to the fact that you blew away the 2024 base number. But curious just as you look at that sequential climb to 2025, what in the base profit of 2024 didn't translate into 2025? Thanks.

So Myles, listen, if you step back and you look at the kind of the numbers that you alluded to, we were sitting in March of 2024 expecting to get to about $7,200,000,000 $7,200,000,000 $7,300,000,000 of profit by the end of 2025. And that was up, call it, dollars 1,500,000,000 from where we ended 2023. As we sit here today, as Larry said in his prepared remarks, we're going to add about $2,500,000,000 of profit in the 2 year period. So that's about a third better than what we thought just 9 months ago. So the business is performing extremely well.

Now as you think about the 2025 profit, call it $800,000,000 year over year at midpoint of 7.50 dollars and $1,000,000,000 at the high end. So first, we spoke about the corporate eliminations up about $100,000,000 from elimination of from higher PAT volume. So that's one thing. But put that aside, we expect CES profit to be up about $700,000,000 at the midpoint. And the biggest driver of profit growth within CES is the drop through that we're getting from the services revenue that we expect to be up to about $3,000,000,000 up year over year at the midpoint of the guide.

And we expect services margins to be flat despite with LEAP getting to be a greater share of that services revenue as other things, productivity pricing, all that is offsetting the LEAP mix impact. And to offset the services within CES will be the impact from OE about split fifty-fifty between the R and D step up and the increase in 9x shipments. We expect 9x to be about a couple of $100,000,000 of headwind in 2025 as we ramp the number of engines that we are shipping. And spare engine ratio is expected to come down gradually as well here in 2025. So that's the CES landscape.

And in DPT, listen, given the growth in backlog, dollars 2.5 to call it close to about 10% backlog growth in 2024, we expect mid- to high single digit revenue growth that's going to translate into profit and with margins expanding about 70 basis points at the midpoint of the guide. So overall, listen, it should be a good year. And to get to the high end of the $1,000,000,000 that you referenced, I think we just need services to be a little bit better and perform at the high end of the guidance.

Our next question comes from Ron Epstein with Bank of America.

Question for you on the 9x. When we think about that, I mean 777X is back in flight test. Are there other opportunities for that engine beyond the 777X?

Rod, I would say that at this point in time, we're fully focused on helping our friends in Seattle get this plane launched. So we're obviously proud to be underway. We think it's going to be a great wide body program over time. Delighted to see, as you mentioned, flight testing resume. We started to ship engines to Boeing.

So we've got work to do clearly, but the customer feedback relative to that aircraft and that engine continues to be quite strong. We've got nearly about 1,000 engines now in backlog. And I'd like to think that with the delays, we've made good use of that time with respect to just additional testing. It's probably going to end up being the most tested engine in our history. We're approaching 2,500 cycles.

In fact, we've got a second dust test engine, critical in harsh and hot environments underway.

And we're already on our 2nd iteration of HBT blades, let alone the CMC nozzle designs. So we're focused on that at the moment, but excited about that backlog and ultimately EIS.

Our next question comes from Sheila Kahyaoglu with Jefferies.

Good morning, Larry and Raul, and congrats, Blair.

Good morning, guys. And maybe I wanted to focus back on CES margins in Q4 just given the performance was so stellar at 28%. And even on slower expected services growth, given the internal shop visit volume hasn't quite turned the corner. So when we think about the 2025 outlook, Raul, I know you talked about this a little bit. Services, you raised the guidance here from just 1 month ago to low to mid teens.

Can you talk about the moving pieces as you think about just the mix of spares parts versus internal and how the different engines are contributing to that? And maybe if you could just talk about the cadence throughout the year as well?

All right. So, Sheila, let me start and obviously, if I don't hit anything, come back and make sure we answer the question. Wilson, CS had a good quarter, better than what we had expected. Favorable services mix, Sheila, as you mentioned, the shop visit volume wasn't exactly where we needed to be, but spare parts did better. And again, as we are trying to manage the supply chain challenges that we are encountering, those parts are fungible and we kind of move them around every quarter to make sure that we are supporting our airline customers.

So there's always a little bit of tension between external spare parts volume and internal shop visits. So the mix skewed towards the mix skewed towards the spare parts in the quarter. And then engine mix was favorable as well. As we said in our prepared remarks, we caught up on the spare engines that we had not delivered in the 1st three quarters. So we caught up here in the Q4, but overall, listen, we expect spare engine ratio for LEAP is 2.24 is in low double digits.

So it will gradually come down, but we're not expecting a steep drop off here. So as you think about 2025, Sheila, within CES, we do expect spare parts to remain strong here given where the external market is. We expect the departures to be up kind of mid single digits and then all the pricing changes that we implemented last year that they've been thinking about the summer get spare parts to be kind of up low double digits. And the shop visit revenue, we are expecting shop visit revenue to be up mid teens. And that's going to come from high single digit shop visit volume growth and you combine that with the work scopes that are increasing be the wide body programs like G90 going for the 2nd shop visit and X is coming for the 1st shop visits versus a quick turn earlier and then LEAP.

So work scopes are increasing and then modest price increases baked into that service portfolio. So that's kind of the landscape of the CES revenue growth. And then that is going to drive the profit in response to Myles' question earlier. Now we're going to come out of the gate strong here, Sheila, within CES especially. Just and the primary driver for that is, a, the 9x shipments are more towards the back end of the year.

But just we are entering the year for spare parts with about 90% of that revenue in our backlog. So we'll have a strong quarter here to start with. In our spare parts sales, we expect shop visits to grow as well. And then we had the CMR of about $200,000,000 in 1Q of last year. We're not expecting that to repeat.

So we'll start the year strongly on profit. And revenue for the quarter for CES should be kind of in line with what we're expecting for full year. Hopefully that answers the question Sheila.

Our next question comes from the line of Doug Harned with Bernstein.

I want to just follow-up a little more on the commercial services growth, because when you talk about low double digit to mid teens next year, that's a little better than you were talking about before or this year. But can you talk about where that's coming from because wide body versus narrow body? And then is the constraint, in other words, could you go higher if you can resolve these supply chain issues?

Doug, as you would imagine, it's a broad based demand strengthening that we see. Could we go higher? We've got work to do with the supply chain to execute on what Rahul just walked everybody through. But there is more pent up demand there, right? We've got the backlog.

An unhelpful level of that is, in many respects, delinquent. So if we could continue to deliver the sequential improvements in inputs combined with the progress I know we're making in our own shops, I wouldn't say no, but we've got work to do to deliver what we just outlined. But again, it won't be a demand challenge for us in 2025, we believe. We don't want to take it all for granted. But given the environment, given the backlog, it really is about operational execution.

Our next question comes from Robert Stallard with Vertical Research.

Just a question on the LEAP. You're expecting 15% to 20% growth this year, and Rahul said that you expect the spares ratio in that to come down. So looking at the remnant of those engines, how are you expecting the split to go between Airbus and Boeing in 2025?

Well, we don't get into that level of detail publicly. But I think we are, as you would imagine, in frequent contact with all of our customers particularly those 2 visavis the intentions they have for 2025. I think we are well aligned to support both of them as they step up production this year.

Our next question comes from Seth Seifman with JPMorgan.

Thanks very much and good morning. Good morning. I wanted to ask about the in terms of spares growth, you kind of talk about departures and price. One of the other things kind of curious about is provisioning of third party shops to do more lead maintenance over time. The degree to which that's happened, the degree to which that's still in front of us and affects kind of the spares growth trajectory.

And maybe also the CapEx that you're doing and how you think over time that plays into the amount of work that will be done internally versus externally?

So Seth, let me start, and Larry can jump in here. Obviously, as we're coming out of the gate here, most of the shop visits have been internal. As we said, about 90% give or take were shop visits that we performed within Safran and GE. The external network is beginning to step up. We have 5 external partners.

They're beginning to get volume. We spoke about the Acasa win with 1 of the 3rd party MRO partner that we have last quarter. So those visits are stepping up and they've been stepping up sequentially as the year has gone up. So as we think about 2025, we expect about call it 15 ish percent of our shop visits to be external. And then on a as I said earlier, about 25% of the shop visits that we have sold are going to which are to be performed by our third party MRO partners.

And then that will gradually grow up as we get into 2,030 and beyond. So that's the trajectory we are on. And within that, obviously, spare parts will grow, spare parts sales will grow as more shop visits performed externally. So the margins on the program will get better because of that dynamic. But overall, listen, even on the services side, on our internal service contracts, just given all the durability improvements that Larry just mentioned, our margins on our internal work that we are performing are very stable.

I mean, we've had a couple of years, good years of service profitability results here for our on our own service contracts. So feel good about that as well.

GE Aerospace (GE) Q4 2024 Earnings Call Transcript

Company Participants