“This is expected to deliver approximately a twofold improvement in time on wing with full MRO and new make cutover expected early next year.”

In context

“Larry Culp: Blaire, thank you. Good morning, everyone. The GE Aerospace team continues to execute with discipline and focus with our customers at the center of everything we do. Our 57,000 employees remain committed to our purpose, inventing the future of flight, lifting people up, and bringing them home safely. I'd like to open by saying CFM International is supporting our customer, Ryanair, in assisting with the investigation into Flight 1879. Safety is our top priority at all times, and our thoughts are with the passengers, pilots, and crew who were on board. The second quarter marked another quarter of significant growth driven by robust commercial services. Overall orders were up 17%, with both segments up at least low double digits. Revenue increased 24%, with CES up 27% and DPT up 16%. Operating profit grew 18%, with both segments up at least high teens. EPS increased 22%, and free cash flow grew 43%, with conversion over 140%. These results close out an exceptional first half, with orders up 49%, revenue up 27%, EPS growing 24%, and free cash flow increasing 31%, with 115% conversion. FLIGHT DECK is helping us drive the operational improvements which undergird the significant output increases. With the first half, commercial services revenue up 32% and total engine deliveries up 31%. We remain focused on advancing what matters most to our customers, delivering on robust demand and our backlog of over $210 billion while investing in both current and next-gen technologies to improve time on wing and cost of ownership. Given the strength of our first half results and momentum for the remainder of the year, this morning, we're raising our 2026 guidance across the board. I'd like to thank the entire GE Aerospace team and our supplier partners for working so well together to deliver for our customers. Turning to slide four. FLIGHT DECK continues to strengthen our operational capabilities in safety, quality, delivery, and cost, always in that order. With demand increasing for the F110 engine at our site in Lynn, Massachusetts, we used FLIGHT DECK to reduce overall production lead time for a critical component by roughly 60% through the consolidation of key process steps and reducing operator distance traveled. This supported F110 deliveries growing over 50% year-over-year in the second quarter. In May, I was in Brazil with the team at Celma, our largest MRO site, where I saw firsthand how we used FLIGHT DECK to reduce CFM56 final assembly lead time by nearly 50%. Actions like this have improved total shop visit turnaround times by about a week since the end of 2025. Just last week, we held three Kaizens with GKN, a top supplier of fan cases and other key components, to break constraints tied to rate performance. We worked collaboratively together to create detailed visual work instructions, increase capacity, and implemented a 3D inspection technology, which led to a 90% improvement in inspection time. Work is now underway to sustain these results and build further momentum. At the same time, AI is a force multiplier for FLIGHT DECK. Across our turbine airfoils team, for example, we recently ran several Kaizens to improve the demand signal process. Standardizing and reducing demand signals strengthens supplier confidence, and then using AI to automate the process, we cut the number of demand signals in half and reduced processing time by nearly 90% across 190 parts. Reducing the number of demand signals we send our suppliers helps focus their efforts, leading to priority supplier material input increasing double digits sequentially and year-over-year again in the second quarter. This supported commercial services revenue up 32% in the first half, including record internal shop visit output in the second quarter and first half total engine deliveries up 31%, including LEAP engines up 41%. We're also expanding capacity to meet growing aftermarket demand for LEAP as the installed base is expected to more than double between now and 2030. Last week, we celebrated with MTU the grand opening of their new maintenance facility in Fort Worth, which recently inducted their first LEAP-1B engine. All in, we're making meaningful progress with FLIGHT DECK. While there's always more to do, we delivered substantial improvement in the first half, and our teams remain focused on meeting customer expectations. Shifting to slide five. While the environment remains dynamic, aftermarket demand has been resilient. First-half departures were roughly flat, but we have not observed any changes in customer behavior. We expect a gradual return to modest departures growth in the second half, and combined with our commercial services backlog of roughly $170 billion, we remain well-positioned for services growth in 2026 and beyond. Demand continues to be robust for LEAP, our fastest-growing platform, as demonstrated by Copa Airlines recently selecting up to 120 LEAP-1B engines to power their growing fleet of 737 MAX aircraft. In addition, maturing time on wing and lowering cost of ownership remain critical priorities for our customers. We recently achieved a major milestone, completing the certification for the LEAP-1B durability kit, including the upgraded HPT blade. This is expected to deliver approximately a twofold improvement in time on wing with full MRO and new make cutover expected early next year. At the same time, we're improving LEAP turnaround times, which are now around 100 days, down over two weeks year-over-year. Keeping customer fleets flying is critical, and we've reached nearly zero grounded LEAP-powered aircraft due to engines, supporting our customers' need for reliable lift. We're also continuing to advance the future of flight. Through the NASA Electrified Powertrain Flight Demonstration, or EPFD project, we recently completed a ground test for the megawatt-class hybrid electric demonstrator. This represents a major milestone in understanding hybrid electric flight by bringing together advanced engines, electrical power systems, and controls. We've also expanded our relationship with BETA Technologies, who joined the EPFD project last year to advance the modification of the EPFD aircraft. We're looking forward to this plane being part of the flying display at the Farnborough Airshow next week. Within defense, we continue to support robust demand for our services and products, both domestically and with allied partners, while advancing next-gen technologies. We announced an agreement with Turkish Aerospace Industries to provide F404 engines for its HÜRJET advanced jet trainer program, and our CT7 engines were selected to power the U.K. Ministry of Defence's new medium helicopter program. We completed an assembly readiness review for the XA102 adaptive cycle engine, a critical milestone that moves the program from design into assembly and test. This builds on the progress of the XA100 and validates that the XA102 engine design, manufacturing process, and supply chain are progressing and on schedule. We continue to strengthen our position in the fast-growing collaborative combat aircraft, or CCA market, with our suite of products. Both the GEK1500 and the GE426 achieved significant milestones to move to preliminary design review, bringing them closer to eventual flight on small and medium-thrust CCAs respectively. We look forward to sharing more exciting wins and updates at the Farnborough Airshow next week. Stepping back, we're focused on translating our unmatched experience and investments into value for our customers while driving long-term growth. Rahul, over to you.”