GE Aerospace Lifts Q3 Engine Deliveries 8%, Including More GEnx and GE9X Units for Boeing Widebody Ramp-Up
Why It MattersEngine supply, rather than airframe assembly alone, is shaping the pace of Boeing's widebody ramp-up, while strong aftermarket demand shows how much value now sits in servicing long-lived engine fleets.
GE Aerospace reported an 8% increase in engine deliveries in the third quarter, including higher GEnx and GE9X deliveries to support Boeing's production ramp-up on its two widebody programs. CFO Rahul Ghai said on an Oct. 20 earnings call that the company supplied more than 50 GEnx engines for 787s during the September quarter, with unit deliveries rising each month. He said more work remains to stabilize at September's rates, along with the broader supply chain.
Boeing is raising 787 production to 10 aircraft per month; its year-to-date average through September was seven per month. In May, Boeing CEO Kelly Ortberg cited fewer-than-expected engine deliveries as one source of reduced first-quarter output and said the engine recovery plan would need to come to fruition before reaching rate 10, expected late in the year. Ghai said Boeing has more than 30 shipsets off/on wing and that engines in Boeing's inventory have grown over recent months as engine deliveries outpaced aircraft deliveries. On the 777-9, GE continues to deliver engines with the upgraded mid-seal while pursuing FAA approval. CEO Larry Culp said GE is working to achieve FAA certification by the end of 2026 and, given the expected timing, has assumed fewer units in the year. Certifying the production-variant engine is one of the few major milestones left in the 777-9 certification program, and Boeing's top remaining item is extended overseas operations (ETOPS) approval via a series of test flights.
Deliveries of CFM International Leap-1A and Leap-1B engines to Airbus and Boeing, respectively, continue to support A320neo and 737 MAX ramp-ups; Culp said GE raised Leap deliveries 26% year over year. Commercial Engines & Services (CE&S) original equipment sales grew 38% in the quarter and aftermarket revenue rose 17%. Ghai said widebody shop-visit demand remains very strong, especially for the GE90 as engines move from first to second shop visit, with 70% of the GE90 fleet yet to see a second visit.
GE raised its full-year guidance, with total revenues now projected to grow 19-20%, up from the high teens previously, and CE&S expected to be up in the low 20% range. The company posted adjusted revenue of $13.3 billion, up 18% year over year, and adjusted earnings per share up 36%.
