CLAIM #26270 · GE (GE) · 2024Q3 earnings call · Oct 22, 2024 · due Dec 31, 2027
“So Gautam, as we said, I think, on the last earnings call, we had expected the peak of shop visits to be in 2025 and then start declining in '26 and '27, right? Given what we are seeing now, we still expect the peak of shop visits in '25, but now to stay at that level to '27 and then start declining from that point on, again, at a gradual pace, right?”
Rahul Ghai · CFO
How to check this claim
Look at: CFM engine shop visits, annual count
It came true if: Shop visits in 2026 and 2027 remain at or near the 2025 peak level (within roughly 5% of the 2025 figure), rather than declining as previously expected
Where: management commentary on quarterly earnings calls (GE Aerospace segment disclosures)
In context
“h quarter will really be on the back of the existing designs, what we supply into the aftermarket? So there are a host of things that have to happen and are happening in that regard. If there was one -- if there was a silver bullet here, we would have used it some time ago. It's multifaceted, but again, I'm encouraged by the progress that we're seeing the certification of the new blade just helps on top of all that. Operator: Our next question comes from Gautam Khanna with TD Cowen. Gautam Khanna: Hey, good morning guys. Lawrence Culp: Good morning. Rahul Ghai: Good morning. Gautam Khanna: I was wondering if you could frame up for us your expectations now for CFM shop visits over the next couple of years versus maybe that widebody, maybe if you could just tease that out a bit. Rahul Ghai: So Gautam, as we said, I think, on the last earnings call, we had expected the peak of shop visits to be in 2025 and then start declining in '26 and '27, right? Given what we are seeing now, we still expect the peak of shop visits in '25, but now to stay at that level to '27 and then start declining from that point on, again, at a gradual pace, right? So that's what our expectation is. Now keep in mind that our revenue growth will continue to grow for longer just given as we go into the second and third shop visits with price increases, everything else, so revenue still continues to grow. On the widebody side, GE90 is getting into the second shop visit. Keep in mind that 75% of that fleet has not seen the second shop visit. So that's what we are beginning to see now. And that spoke to the heavier work scopes that we've also previously discussed, which helped our revenue here in 2024 and will continue to grow over time as we transition to the second shop visits for GE90. So again, no change in outlook on GE90, I think the engine is performing well, things are coming in well. On the NX side, the shop visit are roughly, on a volume basis,”
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SEC filings for GE ↗ · Claim quote is verbatim from the 2024Q3 earnings call.