“This growth plus benefits from share buyback and a lower tax rate will drive mid-teens EPS growth, and we expect to convert 100% of net income to free cash flow reaching roughly $8.5 billion of cash by '28.”

In context

“acklog is at record levels. We are making operational progress to improve durability and delivery, and defense spending remains resilient. With this backdrop, we are expecting that the improvement in '25 guidance will carry through to our '28 outlook. Starting with revenue. We now expect double-digit growth on an annualized basis between '24 and '28. The main drivers will be growth in commercial installed base, largely from LEAP and GEnx, an increase in work scopes as our fleets mature, supporting 25% growth in wide-body revenue per shop visit, favorable mix in defense with rising international defense shipments, mid-single- digit growth or low single-digit net price increases, higher revenue will support double-digit profit growth, with profit reaching approximately $11.5 billion in '28. This growth plus benefits from share buyback and a lower tax rate will drive mid-teens EPS growth, and we expect to convert 100% of net income to free cash flow reaching roughly $8.5 billion of cash by '28. Our updated outlook from profit and free cash flow, both represent a raise of $1.5 billion versus our prior outlook. On Slide 21, looking closer at our profit growth drivers between '25 and '28. Starting on the left at our new '25 profit midpoint of $8.35 billion. The most significant driver of profit growth will be nearly $8 billion of commercial services revenue growth between '25 and '28. This will be partially offset by a mid-teens increase in equipment revenue, including higher LEAP and GE9X shipments and the normalization of spare engine ratio. We expect incremental GE9X losses of a few hundred million dollars in '28 versus '25 given higher volume. DPT revenue growth of mid-single digits at improving margins will also contribute to profit growth. Given ongoing supply chain constrain”