Latest news with #LawrenceCulp
Arabian Business
15-05-2025
- Business
- Arabian Business
GE Aerospace, Qatar Airways strike record engine deal during Trump visit
Qatar Airways and GE Aerospace have entered into a landmark agreement for the supply of more than 400 GE9X and GEnx engines, marking the largest widebody engine purchase in GE Aerospace's history. The signing took place during US President Donald Trump's visit to Doha. The deal includes 60 GE9X and 260 GEnx engines, with additional options and spares to support Qatar Airways' growing fleet of Boeing 777-9 and Boeing 787 aircraft. #Qatar_Airways #QNA #Qatar #Economy May 14, 2025 It builds on a previous order of 188 GE9X engines, bringing the total to 248. The agreement also includes service provisions for maintenance, repair, and overhaul of both engine models. Qatar Airways Group Chief Executive Officer Engr. Badr Mohammed Al-Meer said, 'Our latest agreement with GE Aerospace reflects our confidence in the performance of the GE9X and GEnx engines to power our fleet of Boeing 777-9 and 787 aircraft. These next-generation engines are critical components in our strategy to ensure our fleet remains modern and efficient. Qatar Airways has ambitious plans for the future, and we value our continued partnership with GE Aerospace and their commitment to supporting our operational needs.' GE Aerospace Chairman and CEO H. Lawrence Culp, Jr. said, 'We are extremely honoured to deepen our relationship with Qatar Airways and grateful to them for placing their trust in us with our largest ever widebody engine deal. Our widebody engines – the GE9X and GEnx – are marvels of modern engineering, with the durability and reliability to power flight across the longest distances. We appreciate President Trump's support for this historic agreement.' The GE9X is currently the most powerful commercial aircraft engine in the world and the most fuel-efficient in its class, offering 10 per cent better specific fuel consumption than its predecessor, the GE90-115B. The GEnx engine, introduced in 2011, is GE Aerospace's fastest-selling high-thrust engine, with over 3,600 units in service and backlog. Both engines are certified to operate with Sustainable Aviation Fuel (SAF) blends. The partnership also includes comprehensive On Wing Support through GE Aerospace's local center in Qatar, which trains aviation professionals and supports the development of regional aerospace talent.
Yahoo
23-04-2025
- Business
- Yahoo
GE Aerospace (GE) Q1 2025 Earnings Call Highlights: Strong Profit Growth Amid Tariff Challenges
Orders Growth: Up 12%. Revenue Growth: Up 11%. Profit: $2.1 billion, up 38%. Margins: 23.8%. Earnings Per Share (EPS): $1.49, up 60% year over year. Free Cash Flow: $1.4 billion. Commercial Engines & Services Revenue Growth: Up 17%. Defense Units Growth: Up 5%. Defense Profit Growth: Up 16%. R&D Spending: Approximately $3 billion annually. Backlog: Over $170 billion. Commercial Services Backlog: Over $140 billion. Spare Parts Revenue Growth: Up more than 20%. Internal Shop Visit Revenue Growth: Up 11%. LEAP External Shop Visits Growth: Over 60%. Guidance for 2025: Revenue growth low double-digit, profit $7.8 billion to $8.2 billion, EPS $5.10 to $5.45, free cash flow $6.3 billion to $6.8 billion. Warning! GuruFocus has detected 5 Warning Sign with GE. Release Date: April 22, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. GE Aerospace (NYSE:GE) reported a strong start to 2025 with orders up 12% and revenue growing 11%, driven by double-digit growth in both services and equipment. The company achieved a significant profit increase of 38% to $2.1 billion, leading to expanded margins of 23.8%. Commercial Engines & Services (CES) saw a 31% increase in orders and a 17% rise in revenue, contributing to a 35% growth in operating profit year over year. Defense & Propulsion Technologies (DPT) experienced a solid quarter with defense units growing 5% and profit increasing 16%. GE Aerospace (NYSE:GE) is investing $1 billion in US manufacturing and hiring over 5,000 US workers, supporting domestic manufacturing revitalization efforts. Heightened tariffs are expected to result in additional costs, with GE Aerospace (NYSE:GE) estimating a $500 million impact despite efforts to mitigate it. Spare parts delinquency has increased over two times year over year, indicating challenges in converting orders to revenue due to supply chain dynamics. The company is taking a cautious approach with a slower second half expected, resulting in departures up low-single digits for the full year. Total engine units were down 6%, with LEAP engine deliveries down 13%, attributed to a slower start to material inputs. The macroeconomic backdrop remains uncertain, with potential impacts from tariffs, a slowdown in airframer delivery schedules, and a global recession not factored into the guidance. Q: Can you comment on the interactions with the administration regarding tariffs and how this might play out over time? A: H. Lawrence Culp, CEO, explained that GE Aerospace has been advocating for a return to a zero-tariff regime, emphasizing the $75 billion trade surplus the sector enjoys due to this approach. While there are many potential scenarios, the company is preparing for a $500 million headwind in 2025 due to tariffs and is taking cost control and pricing actions to mitigate this impact. Q: How should we think about the margin cadence in Q2 and the second half, considering the tariffs? A: Rahul Ghai, CFO, noted that GE Aerospace had a strong start to the year and expects this momentum to continue into Q2, with revenue growth better than Q1 and profit dollars flat to sequentially up. For the second half, they are embedding conservatism due to macroeconomic uncertainties and tariffs, but still expect year-over-year profit growth. Q: What are the assumptions for departures in the second half of the year, and how might this affect spares and shop visits? A: CEO Larry Culp mentioned that while departures held up well in Q1, they are taking a conservative view for the second half, anticipating potential softening in US departures. However, it typically takes two to four quarters for such slowdowns to impact their operations significantly. Q: Can you elaborate on your pricing strategy, especially in light of tariffs? A: CFO Rahul Ghai stated that GE Aerospace plans to implement typical catalog price increases in the summer, aiming for mid to high single-digit increases. Additionally, they are considering a temporary surcharge to recover tariff costs, alongside SG&A cost control actions. Q: Was there any pre-buying of spare parts in Q1, and can you provide details on widebody versus narrowbody dynamics? A: Rahul Ghai confirmed there were no pre-buys in Q1. LEAP engine shop visits are expected to grow over 30%, with the external channel increasing its share. CFM56 shop visits are expected to grow mid-single digits, with LEAP driving higher percentage growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
