Latest news with #LarryCulp
Yahoo
a day ago
- Business
- Yahoo
GE Aerospace (GE): A Bull Case Theory
We came across a bullish thesis on GE Aerospace (GE) on Asymmetric Ventures' Substack. In this article, we will summarize the bulls' thesis on GE. GE Aerospace (GE)'s share was trading at $241.78 as of 27th May. GE's trailing and forward P/E were 38.14 and 43.29 respectively according to Yahoo Finance. A huge in-process machining center producing parts for aircraft and aerospace systems. GE Aerospace is a leading force in the aerospace industry, primarily generating revenue through its maintenance, repair, and overhaul (MRO) services. This segment benefits from a large installed base of engines and Power-by-the-Hour contracts, which provide customers with predictable costs and GE with stable, recurring income. The company's extensive global network of service centers and highly trained workforce enable rapid and efficient engine servicing, reinforcing its market dominance. Programs such as TrueChoice™ and TrueEngine™ enhance customer loyalty by allowing flexible maintenance options and improving engine performance and residual value. Additionally, GE Aerospace leverages advanced predictive maintenance technology that utilizes real-time data to anticipate engine issues, reducing downtime and lowering maintenance costs for clients. The firm maintains significant competitive advantages due to high barriers to entry, including complex engineering expertise, regulatory certifications, and long-term relationships with major aircraft manufacturers like Boeing and Airbus. These partnerships give GE Aerospace exclusive access to key engine programs, securing a near-monopoly in several market segments. The company also benefits from a strong aftermarket position, with customers relying on GE for life-cycle support of their engines. Under CEO Larry Culp's leadership, GE Aerospace has focused on operational efficiency, innovation, and strategic portfolio management, helping the division navigate challenges like supply chain disruptions and rising competition. Its robust balance sheet and steady cash flows position it well for ongoing investment in technology and growth initiatives. Overall, GE Aerospace stands as a financially solid, technologically advanced leader with durable competitive moats, well poised for sustainable long-term growth in the commercial aviation market. For a deeper look into another aerospace stock, be sure to check out our article on The Boeing Company (BA) wherein we summarized a bullish thesis by DeepValue on Substack. Since our coverage, the stock is up 11.12%. GE Aerospace (GE) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 104 hedge fund portfolios held GE at the end of the first quarter which was 101 in the previous quarter. While we acknowledge the risk and potential of GE as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GE but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
CNBC
3 days ago
- Business
- CNBC
GE Aerospace CEO sees supply chain improvements despite tariff hit
GE Aerospace's CEO said on Wednesday he is seeing supply chain improvements that will support an expected 15% to 20% increase in deliveries this year of jet engines used on popular narrowbody aircraft, after snags challenged deliveries in 2024. CEO Larry Culp also told the Bernstein Strategic Decisions conference that the engine maker pledged to be "completely in sync" with customer Boeing, as the U.S. planemaker gradually grows production of its strong-selling 737 MAX to a monthly rate of 38 and possibly above this year. GE Aerospace, however, is still expecting a hit of more than $500 million from tariffs due to a U.S.-led trade war. GE Aerospace holds a strong position in the narrowbody jet engine market through its partnership with France's Safran, which produces the LEAP engine used by both Boeing and European planemaker Airbus. While the U.S. market has seen some turbulence in domestic travel due to economic uncertainty, about 70% of GE's commercial engine revenue is driven by parts and services which remain in demand as older planes fly longer. Earlier this month, GE Aerospace signed an agreement with Qatar Airways to supply more than 400 engines to power the airline's next-generation Boeing 777-9 and 787 aircraft. Helped by internal changes, Culp said GE saw a double-digit increase in deliveries from critical suppliers in April and May, with some delivering twice as much as they were doing a year ago. "We're getting more and we're getting more in a predictable fashion," Culp said. Supply chain challenges, nevertheless, continue to dog plane production as Boeing and Airbus manufacture more jets, with no one particular bottleneck to blame. "A lot of people say, what's the one thing you need to solve for? I wish it was just one thing, right? It's 1,000 and it changes," Culp said. Culp added that he is working alongside Boeing CEO Kelly Ortberg on GE's imminent engine deliveries, and how those will step up in line with Boeing in 2026 and in 2027. Boeing has engines in its inventory after output of its strongest-selling 737 MAX slumped last year due to a quality crisis. "They're working their way through that inventory," Culp said of Boeing. "We want to make sure that we are completely in sync with them as we move forward." GE Aerospace is holding its investor day at the world's largest air show in Paris on June 17.
Reuters
3 days ago
- Business
- Reuters
GE Aerospace CEO sees supply chain improvements, despite tariff hit
May 28 (Reuters) - GE Aerospace's CEO said on Wednesday he is seeing supply chain improvements that will support a 15% to 20% increase in deliveries this year of jet engines used on popular narrowbody aircraft, after snags challenged deliveries in 2024. CEO Larry Culp also told the Bernstein Strategic Decisions conference that the engine maker pledged to be 'completely in sync' with customer Boeing (BA.N), opens new tab, as the U.S. planemaker gradually grows production of its strong-selling 737 MAX to a monthly rate of 38 and possibly above this year. GE Aerospace, however, is still expecting a hit of more than $500 million from tariffs due to a U.S.-led trade war.
Yahoo
3 days ago
- Business
- Yahoo
GE Aerospace CEO sees supply chain improvements, despite tariff hit
(Reuters) -GE Aerospace's CEO said on Wednesday he is seeing supply chain improvements that will support a 15% to 20% increase in deliveries this year of jet engines used on popular narrowbody aircraft, after snags challenged deliveries in 2024. CEO Larry Culp also told the Bernstein Strategic Decisions conference that the engine maker pledged to be 'completely in sync' with customer Boeing, as the U.S. planemaker gradually grows production of its strong-selling 737 MAX to a monthly rate of 38 and possibly above this year. GE Aerospace, however, is still expecting a hit of more than $500 million from tariffs due to a U.S.-led trade war. (Reporting By Allison Lampert and Shivansh Tiwary) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
15-05-2025
- Business
- Zawya
Qatar Airways orders 160 Boeing twin-aisle jets during Trump visit
DOHA/SEATTLE: Boeing landed its biggest deal for widebody airplanes on Wednesday when state carrier Qatar Airways placed firm orders for 160 jetliners plus options to buy 50 more during President Donald Trump's visit to the Gulf Arab country. The deal for Boeing 777X and 787 planes with GE Aerospace engines was worth $96 billion, according to the White House. It is a win for Trump on a high-profile visit to the region, even though it will be years before the jets are delivered. The sale is also a boost for Boeing and its biggest engine supplier at a time when large versions of rival Airbus' A350, powered by Rolls-Royce engines, have struggled with maintenance problems from operating in the world's hottest climates, including the Gulf region. The agreement is for 160 firm orders - 130 787s and 30 777Xs - and options for another 50 of the two long-haul airplanes, according to Boeing. The company's shares rose 0.6% in New York, while GE Aerospace stock gained 0.7%. For the 787s, Qatar opted for GE Aerospace's GEnx engines rather than Rolls-Royce's Trent 1000, according to the administration. GE Aerospace's GE9X is the only engine option for the 777X. The deal for 400 GE engines is the largest ever for GE Aerospace, the company's CEO Larry Culp said in a statement, a point echoed by Qatar Airways, which told Reuters in March that it was working on a large order for widebody jets. Trump and Qatar's Emir Sheikh Tamim bin Hamad Al-Thani joined a signing ceremony with Boeing CEO Kelly Ortberg and Qatar Airways CEO Badr Mohammed Al-Meer. Trump said Ortberg told him it was the largest jet order in Boeing's history. The deal was signed during Trump's second stop on a tour of Gulf states after he struck a string of deals with Saudi Arabia on Tuesday. The 777X is still in development and slated to start deliveries in 2026, six years behind schedule. Qatar Airways already has orders for 94 777Xs. Its competitor, Emirates, has orders for 205 777Xs. The two airlines were among the first customers when Boeing launched the program in 2013. Boeing's order book included 521 777X orders and 828 787 orders as of April 30, according to the company. (Reporting by Andrew Mills; Additional reporting by Allison Lampert in Montreal, Tim Hepher in Paris and Dan Catchpole in Seattle; Writing by Federico Maccioni and Yousef Saba; Editing by Ros Russell, Rod Nickel and Diane Craft)
