CLAIM #26374 · GE (GE) · 2025Q1 earnings call · Apr 25, 2025 · due Apr 25, 2027
“So while the price -- we are implementing price increases for the shop visits and the portfolio accretion is at a higher price, that has not really showed up in our P&L just yet. So that will take another couple of years before it starts showing up.”
Rahul Ghai · CFO
How to check this claim
Look at: Shop visit/services revenue price realization or aftermarket services margin uplift attributable to higher LEAP shop visit pricing, as disclosed in commentary
It came true if: Management or reported financials indicate LEAP shop visit price increases have materially begun showing up in P&L (aftermarket services margin/revenue per shop visit trending higher) within the stated ~2-year window
Where: Company earnings releases, 10-K/10-Q segment disclosures, and management commentary on earnings calls through 2027
In context
“ome statement versus how much is still just sitting in the backlog and remaining to be seen? Thank you. Rahul Ghai: Yes. No, Scott, you're right. So let me take that in two pieces. One, I think you're right, the shop visit prices are going up. And that's just basically the end of launch period pricing, right? I mean, obviously, as we were in the 2019 to 2021 time frame, it was a very different time period, we were in that initial stages of launch. As we've come out of that, the LEAP shop visit pricing has gone up since then. And -- but as we think about that price increase that we put in place, that takes a few years for it to show up in the P&L, as you mentioned, just given the timing of contract and obviously, with the delays in aircraft deliveries, that cycle is a little bit elongated. So while the price -- we are implementing price increases for the shop visits and the portfolio accretion is at a higher price, that has not really showed up in our P&L just yet. So that will take another couple of years before it starts showing up. And those contracts that we have signed recently will go into effect. Operator: Our next question comes from Seth Seifman with JPMorgan. Seth Seifman: Hi, thanks very much. Good morning. Larry Culp: Good morning, Seth. Seth Seifman: Good morning. I wanted to -- a follow-up question on those on the drawbacks. I guess, how do you think about those working through the supply chain? Do suppliers -- do you have any -- do suppliers take care of all of that themselves? Does any of it go through you? And do you anticipate, given that some of them might not be as well-capitalized, some need to support them or perhaps on the flip side, given the amount of inventory that you have that there is maybe an opportunity to draw a little bit less right now? And basically, how the -- you're thinking about m”
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SEC filings for GE ↗ · Claim quote is verbatim from the 2025Q1 earnings call.