CLAIM #26363 · GE (GE) · 2025Q1 earnings call · Apr 25, 2025 · due Dec 31, 2025
“But overall, we are holding the low double-digit spare parts growth for the year, just given the start that we've had.”
Rahul Ghai · CFO
In context
“l, more than 90% of the spare parts are in the backlog, which is a similar position that we were in January for first quarter. And -- but this spare parts growth in the second quarter will be partially offset by a higher OE growth. Now as we think about the second half of the year, a lot more uncertainty given the volatility around the macro trends that we've spoken to, but we've embedded a certain amount of conservatism in our guide around departures that we spoke about and issues arising from the tariffs in China. So given that, we've reduced our expectations for spare engines and spare parts deliveries to China. Now some of them will get diverted to other customers, but will probably - still be an impact. And we've also factored in the potential slowdown in departures in North America. But overall, we are holding the low double-digit spare parts growth for the year, just given the start that we've had. So if you put all that together, we should still see year-over-year profit growth in the second half should be a -- still be a very, very good year for us. And overall, as we sit here today, Sheila, we feel better about the year even with the tariffs, even with the macroeconomic uncertainty that we did back in January. And knowing that where we are in the world right now, we'll be back together in June at the Paris Air Show, and we'll give you an update there. Operator: Our next question comes from David Strauss with Barclays. David Strauss: Thanks. Good morning, everyone. Rahul Ghai: Good morning, Dave. Larry Culp: Good morning, David. David Strauss: So just wanted to dig in a little bit on that second half of the year assumption on departures. It looks like you're assuming basically no”
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SEC filings for GE ↗ · Claim quote is verbatim from the 2025Q1 earnings call.