“These actions give us confidence that we can navigate the impact from CFM56 retirement and that LEAP will not only equal CFM56 profit by the end of the decade, but the profitability levels will continue to improve beyond that.”

In context

“ime on wing will support improved services profitability. We continue to expect approximately 70% of LEAP shop visits to be performed by CFM, split equally between our JV partner, Safran and us. To further reduce shop visit cost, we are investing in repair technology, which typically costs roughly 50% less than new parts. This offers customer significant economic benefit, while also reducing turnaround time as we do not have to wait for new material. Year-to-date, we have developed over 200 new repairs for LEAP and 1,000 repairs across the commercial engines business. Our goal is to more than double the number of LEAP specific repairs by '28. For context, we've developed nearly 3,000 repairs over the lifetime of the GE90 program, and we are targeting a similar number for LEAP at maturity. These actions give us confidence that we can navigate the impact from CFM56 retirement and that LEAP will not only equal CFM56 profit by the end of the decade, but the profitability levels will continue to improve beyond that. Now let's turn to how we plan to continue converting this profit growth into cash. We added approximately $3 billion of inventory between '23 and '24. And as result, our inventory turns declined by about 0.5 point. The majority of this increase is due to trapped inventory, material we purchased, but can't yet use because we don't have all the parts needed to complete a shop visit or deliver an engine. As material availability and stability improve, we expect inventory turns to begin recovering. We see a clear opportunity to improve at least 1 full turn from '24 to '28. We'll get there by reducing work in progress and raw material inventory, driven by better flow and continued implementation of a pull-based system with our suppliers. If you look to the right-hand side of the page, you will”