“keep in mind that the equipment growth will ramp in the second half of the year. Equipment growth will also include 9X shipments and the services mix will skew back towards the shop visit growth, which we still expect to be maybe low to mid-teens for the year.”

In context

“is points year-on-year despite this OE growth at 2x aftermarket growth. And I hear what you’re saying, a roll on the spares exceeding shop visits. But is there anything else under the surface that really explains that kind of counterintuitive margin expansion? Rahul Ghai: No, listen, we had a good start in CES, $1.4 billion of profit, margin expansion despite the CMR, the service profit adjustment that we had to make in the quarter. And the big drivers here were pricing and customer mix, both on the equipment and on services. The mix shift from – mix shift in OE from LEAP to wide-body mix health and also in services, our spare part volume growth was higher than shop visit growth. So that mix shift in services was a contributor as well. So encouraging start, but as you go through the year, keep in mind that the equipment growth will ramp in the second half of the year. Equipment growth will also include 9X shipments and the services mix will skew back towards the shop visit growth, which we still expect to be maybe low to mid-teens for the year. So the second half profit growth on a year-over-year basis will be lower than the profit growth that we’ll see in the first half. But overall, listen, good start in CES, gives us confidence to raise the full year for CES in profit by about $100 million. Operator: Our next question will come from Robert Stallard with Vertical Research. Robert Stallard: Thanks so much. Good morning. Larry Culp: Good morning. Robert Stallard: Just following on from David’s question on the LEAP. Do these issues with ramping up the LEAP have positive implications for the CFM shop visit peak, which I think you’ve earlier estimated at 2025, and also the height of that peak potentially going forward? Larry Culp: Well, I would say that we do see, I think, some knock-on positive effects in the aftermarket, both her”