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CLAIM #26300 · GE (GE) · 2024Q4 earnings call · Jan 24, 2025 · due Dec 31, 2028

So, we expected LEAP to be kind of in CFM56 levels by 2028.

Rahul Ghai · CFO

PENDING
graded after results covering Dec 31, 2028 are reported

How to check this claim

Look at: LEAP program segment profit compared to CFM56 program segment profit (as disclosed or discussed by GE management)

It came true if: LEAP program profit reaches approximately the same level as CFM56 program profit by 2028

Where: Management commentary on GE Aerospace earnings calls / investor disclosures regarding LEAP and CFM56 program profitability

In context

s that our profitability and margins for the program are getting better from increasing shop visits and higher external spare parts volume. And the OE performance improves despite more engines that we're going to ship. And just to comment on the external services volume, in 2024, shop visits -- external shop visits were just north of 10%, and we expect that to increase to 15% in 2025. And on a sold basis, the shop visits that we have sold, about 25% of the shop visits are non-GE/Safran shop visits, and that will help future profitability. So overall, the program is on the right trajectory. And as the program kind of breaks even this year, OE becomes profitable next year, I think the services growth trajectory that the program has with the installed base is just going to power the program. So, we expected LEAP to be kind of in CFM56 levels by 2028. Maybe CFM is performing a little bit better. But that's the trajectory that the program is on that, sometime in -- late towards the end part of this decade, LEAP and CFM are delivering the same amount of profit for the Company. Larry, anything you want to add here? Larry Culp: I think you've covered the landscape there. Clearly, much of what we've talked about, Scott, just already this morning with respect to managing the supply base sets us up, particularly as we think about the ramps with LEAP. We would expect LEAP new units to be up 15% to 20% this year, more to come after that. So, that installed base growth, that aftermarket opportunity that Rahul was really talking about, is really a function of what we're doing currently with the installed base -- the supply base. That, of course,

Verify independently

SEC filings for GE · Claim quote is verbatim from the 2024Q4 earnings call.