GE Aerospace (GE) official guidance

Expectations for corporate costs and eliminations remain unchanged at $1.2 billion-$1.3 billion.

We expect a gradual return to modest departures growth in the second half, and combined with our commercial services backlog of roughly $170 billion, we remain well-positioned for services growth in 2026 and beyond.

This reflects higher profit combined with a lower tax rate, which we now expect to be below 16.5% for the year.

Taken together, we are raising our EPS guidance to a range of $7.65-$7.85, up $0.35 at the midpoint from the high end of the prior guide.

Our external channel has gone from sub 10% of our overall LEAP services portfolio to call it mid-teens right now, and we expect that to grow to, say, 30% by the time we get to 2030.

We are also raising our free cash flow guidance to $8.9 billion-$9.2 billion, up $650 million from the high end of the prior guide, reflecting higher earnings and better working capital performance.

The installed base should continue to grow gradually every year at a low to mid-single-digit rate. That's definitely the way we see things through the rest of this decade.

We now expect commercial equipment to grow around 20%, up from mid to high teens, with LEAP deliveries up high teens from 15% previously.

I think on shop visits, as you said, we are expecting the shop visits to probably grow at kind of a 25% CAGR from now till 2030, and it's all a function of the installed base that's largely out there and will continue to grow over the next couple of years.

CES operating profit is now expected to be in a range of $10.25 billion-$10.35 billion, up $400 million versus the high end of the prior guide.

We expect DPT profit to be in the range of $1.6 billion-$1.7 billion, up $50 million at the midpoint versus the prior guide, reflecting drop-through from higher revenue.

Operating profit is now projected to be in a range of $10.55 billion-$10.75 billion, with improvement in both segments.

Overall, both for CES and for the total company, we would expect margin expansion in 2028 and beyond.

We expect LEAP services margins to be in line with our total services portfolio by the time we get to 2028.

Overall, both for CES and for the total company, we would expect margin expansion in 2028 and beyond.

We expect CES growth of around 20%, up from prior outlook of mid-teens.

We expect DPT growth of low double digits, up from mid to high single digits.

We now expect commercial equipment to grow around 20%, up from mid to high teens, with LEAP deliveries up high teens from 15% previously.

We now expect commercial services to grow low 20s, up from mid-teens.

On a year-over-year basis, the second half services revenue in our current guide is up low double-digit from a very strong second half last year.

We're expecting overall revenue to grow high teens, up from prior outlook of low double digits.

We raised our full-year guide to the low 20% growth, and now we're expecting services to be up $5 billion year-over-year.

Overall, the CFM56 work scopes should remain stable from now till 2028, 2029, because there's hardly any used material in the market, the retirements are low, and a lot of the engines that are coming in now need life-limited part upgrades as well.

| Free Cash Flow* FCF* conversion-b) | $7.7B 113% | $8.0 - $8.4B >100% | $8.9 - $9.2B >100% |

| Adjusted Revenue* Growth Adjusted Revenue* | '+21% $42.3B | LDD | High-teens |

This includes a low double-digit decline in the Middle East for the year, with modest reductions to other regions.

As a result, we're reducing our full-year departures outlook from mid-single-digit growth to flat to low-single-digit growth.

This year, we expect the number of repairs that we're developing on LEAP to double over what we developed last year.

I think for the current year, as you think about the margins, we've baked in kind of flattish margins here for the year.

We're expecting a further improvement this year on margins.

Now keep in mind that the retirement rates that we've assumed for 2026 for CFM56 are in the 2% range.

As we get into 2027, we've already assumed in our prior outlook that retirements increase to 3%-4%.

As a result, we are expecting second quarter services growth of high teens above our full-year guide and supporting total company year-over-year and sequential profit growth in the quarter.

We continue to expect CapEx at roughly 3% of sales.

We continue to convert this into cash, expecting to generate more than $20 billion of cash between 2024 and 2026 to reinvest in our future, including in U.S. manufacturing to support both our commercial and defense customers.

And free cash flow, we expect certain payments here in the first quarter. So free cash flow will be down year-over-year.

Interest expense is expected to be roughly $900 million.

With LEAP installed base expected to roughly triple between 2024 and 2030, we're expanding capacity across our global MRO network to support aftermarket demand.

Yeah. And Myles, to answer your question on the LEAP profitability, yes, we expect LEAP OE to be profitable in 2026 as per our prior plans.

LEAP internal shop visits are expected to grow 25%.

We expect these investments will roughly double LEAP internal capacity.

I think we have plenty of opportunity to deliver on that $11.5 billion of operating profit that we've talked about for 2028, potentially do better, but that's really the plan.

Now, as we switch to profit, expect that profit to be up year-over-year growth, up year-over-year, primarily from the services growth and the absence of the CMR charge that we took, which will offset the higher deliveries and the 9X shipments.

If you go back to July when we gave our 2028 guidance, we said we expect 21%-ish margins in 2028.

We expect to deliver mid-teens revenue growth between 2024 and 2026 compounded and $10 billion of profit in 2026, two years earlier than our outlook had said.

We expect our engine and shop visit output to grow substantially here in the first quarter. And that will drive our revenue growth. And we expect, kind of if you put all that together at the total company level, we expect high teens revenue growth for the company with both CES and DPT above their respective full-year guides.

At this point, from a shop visit perspective, we think we're going to be in that 2,300 to 2,400 range through 2028.

| Corporate Cost & Eliminations Operating Profit*-c) | $(1.0)B | $(1.2) - $(1.3)B |

Corporate cost and eliminations are expected to be roughly $1 billion.

Additionally, we are improving our interest expense and tax rate outlook for the year and now expect interest expense of approximately $850 million and tax rate of 17.5%.

As we look forward into 2026, we still expect that, we expect departures growth of where we have been in 2025, kind of 3%-4%. The number of engines that will come off wing are going to be up double digits.

Taken together, we are raising our EPS guidance to $6-$6.20, up $0.40 at the midpoint from the prior guide.

As we think longer term for the year, we expect LEAP external shop visits to be kind of in the mid-teens, slightly above that range.

We are also raising our free cash flow guidance to $7.1 billion-$7.3 billion, up $500 million at the midpoint, primarily from higher earnings.

Additionally, we are improving our interest expense and tax rate outlook for the year and now expect interest expense of approximately $850 million and tax rate of 17.5%.

As we see ourselves till 2030, we expect this 30% year-over-year internal shop visit growth to continue, right?

Based on this progress, we now expect to grow LEAP deliveries more than 20% for the full year, up from our prior outlook of 15%-20%.

We expect, call it, 2,000 LEAP engine shipments and then incremental GE9X shipments here because our volume assumptions on GE9X have not changed since we were together back in July.

Additionally, while CFM56 continues to fly for longer and with LEAP's fleet size expected to triple by 2030, FLIGHT DECK is also helping us expand our capacity and capabilities to reduce turnaround times and improve shop visit output, two top priorities to meet the demands of our customers.

The work scopes on wide body, low single digit kind of net price increase that we are expecting, which seems reasonable.

CES operating profit is now expected to be in a range of $8.45 billion-$8.65 billion, up $450 million at the midpoint from prior guide.

We expect DPT profit to be in the $1.2 billion-$1.3 billion range, up $50 million at the midpoint versus the prior guide, reflecting year-to-date performance from improved deliveries.

Operating profit is now expected to be in a range of $8.65 billion-$8.85 billion, up $400 million at the midpoint from the prior guide.

At CES, we now expect growth of low 20s, up from our prior outlook of high teens.

We now expect DPT growth of high single digits, up from mid to high single digits previously.

We continue to expect equipment to grow high teens to 20%.

This is driven by higher services revenue, which we now expect to grow low to mid-20s, up from high teens.

We expect revenue to grow high teens, up from our prior outlook of mid-teens.

| Free Cash Flow\* FCF\* conversion-a) | $6.2B 123% | $6.5 - $6.9B >100% | $7.1 - $7.3B >100% |

| Adjusted Revenue\* Growth Adjusted Revenue\* | '+10% $35.1B | +Mid-teens | +High-teens |