General Electric (GE) Q3 2026 Earnings Call: Q&A Summary

Q: Doug Harned with Bernstein asked how management views the next couple of years regarding airline profitability and fuel pressures given the strong services backlog.

A: Larry Culp stated that departures are growing and demand remains solid, supported by low to mid-single-digit installed base growth and stable removals.

Q: Scott Deuschle with Deutsche Bank asked about widebody shop visit revenue growth and what prevented stronger growth.

A: Rahul Ghai explained that widebody demand is strong with low retirements, but total shop visit growth was offset by customer mix and early-stage LEAP volume.

Q: Myles Walton with Wolfe Research asked if spare parts delinquencies will continue to play a role and whether a burn-down in delinquency is assumed for 2027.

A: Rahul Ghai noted that spare parts orders accelerated and backlog is steady, while Larry Culp added that the operational focus is on reducing delinquency to improve lead times.

Q: Sheila Kahyaoglu with Jefferies asked about widebody equipment sales timing for the GE9X mid-seal certification and the GEnx production ramp.

A: Larry Culp said GE9X mid-seal deliveries to Boeing began in August with end-of-year certification targeted, and Rahul Ghai added that GEnx deliveries more than doubled year-over-year with over 50 engines delivered in the quarter.

Q: Seth Seifman with JPMorgan asked how to consider the relationship between strong order growth and future sales, including shop visits.

A: Rahul Ghai stated that orders typically convert in 6 to 9 months, and strong services orders and backlog underwrite low double-digit 2027 growth expectations.

Q: Kristine Liwang with Morgan Stanley asked if high oil prices are changing customer behavior regarding work scopes or time on wing for incremental engines.

A: Larry Culp and Rahul Ghai responded that parked aircraft and retirements are down, widebody work scopes are increasing, and CFM56 work scopes remain steady due to life-limited parts.

Q: John Godyn with Citi asked about current and future CFM56 retirement rates and whether they can snap up quickly.

A: Larry Culp noted that CFM56 is a young fleet with two-thirds not seeing a second shop visit, and Rahul Ghai added that retirements are trending below 2% this year while shop visits are expected at 2,400.

Q: David Strauss with Wells Fargo asked about the puts and takes for 2027 segment margins and performance.

A: Rahul Ghai explained that low double-digit services revenue growth and DPT high single-digit growth will drive profit, partially offset by a $300 million headwind from GE9X.

Q: Noah Poponak with Goldman Sachs asked to quantify 2026 and 2027 growth for LEAP and CFM56 shop visits.

A: Rahul Ghai stated CFM56 shop visits are largely flat in the 2,300 to 2,400 range, while LEAP is experiencing strong growth of around 40% this year and pacing toward a 25% CAGR through 2030.

Q: Gavin Parsons with UBS asked for more detail on CPP enhanced cooling and engine development.

A: Larry Culp stated that CPP expands capacity for the industry, aids durability and efficiency for current and future programs, and is currently about 3,000 endurance cycles along in development.