Q2 2026 General Electric Co Earnings Call Transcript
Key Points
- GE Aerospace (GE) reported a significant growth in the second quarter, with orders up 17% and revenue increasing by 24%.
- Operating profit grew by 18%, and EPS increased by 22%, showcasing strong financial performance.
- Free cash flow saw a substantial increase of 43%, with conversion over 140%, indicating strong cash generation.
- The company raised its 2026 guidance across the board, reflecting confidence in continued growth.
- GE Aerospace (GE) is making meaningful progress with its FLIGHT DECK initiative, improving operational capabilities and reducing production lead times.
- Margins decreased by 130 basis points to 21.7% due to installed engine growth, investments, and inflation.
- Despite strong revenue growth, spare parts delinquency grew 20% sequentially in the second quarter, indicating supply chain challenges.
- The company faces ongoing challenges with LEAP engine durability, requiring continued investment in durability kits.
- The dynamic environment and macroeconomic uncertainties remain a concern for future performance.
- The company is dealing with high initial costs for the GE9X engines, which are expected to peak by 2028, impacting margins.
Good day, ladies and gentlemen, and welcome to the GE Aerospace second-quarter 2026 earnings conference call. (Operator Instructions) My name is Liz, and I will be your conference coordinator today. (Operator Instructions) As a reminder, this conference is being recorded.
I'd now like to turn the program over to your host for today's conference, Blaire Shoor from the GE Aerospace Investor Relations team. Please proceed.
Thanks, Liz. Welcome to GE Aerospace's second-quarter 2026 earnings call. I'm joined by Chairman and CEO, Larry Culp; and CFO, Rahul Ghai.
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 will speak to total company and corporate financial results and guidance today on a non-GAAP basis.
With that, over to Larry.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
