CLAIM #26301 · GE (GE) · 2024Q4 earnings call · Jan 24, 2025 · due Dec 31, 2029
“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.”
Rahul Ghai · CFO
How to check this claim
Look at: LEAP program segment profit compared to CFM56 program segment profit, as disclosed by GE Aerospace
It came true if: LEAP profit contribution approximately equal to CFM profit contribution (within ~10%) by fiscal year 2029 or 2030
Where: Company commentary / segment disclosures on GE Aerospace earnings calls or investor materials (10-K/Q4 call)
In context
“igher 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, coupled with the progress that we made with the HPT at the end of the year on the LEAP-1A sets us up, I think, even more strongly in the marketplace. And we know the engine's performing well in the market. I think we increased o”
Verify independently
SEC filings for GE ↗ · Claim quote is verbatim from the 2024Q4 earnings call.