Q1 2026 General Electric Co Earnings Call Transcript
Key Points
- GE Aerospace (GE) reported a strong start to 2026 with orders up 87% and revenue increasing by 29%.
- Operating profit grew by 18%, and EPS increased by 25% to $1.86, with free cash flow up 14%.
- Commercial services revenue rose by 39%, and total engine deliveries increased by 43%.
- The company has a robust backlog of over $170 billion in commercial services, providing visibility into multi-year demand.
- GE Aerospace (GE) is investing $1 billion in US manufacturing sites to accelerate engine deliveries and strengthen the defense industrial base.
- The geopolitical conflict in the Middle East has led to a reduction in the full-year departures outlook from mid-single-digit growth to flat or low single-digit growth.
- Spare parts delinquency has increased by 70% since the end of 2024 due to material availability constraints.
- Margins decreased by 200 basis points to 21.8% due to installed engine growth, investments, and inflation.
- The company is cautious about potential impacts from a global recession and elevated fuel prices affecting air travel demand.
- Despite strong demand, there are ongoing supply chain challenges, with continued demand outstripping supply, leading to increased delinquency.
Good day, ladies and gentlemen, and welcome to the GE Aerospace first 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 would 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 first 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 business 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.
Now, over to Larry.
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