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| GE Aerospace |
Increased Demand for MRO Services and Supply Chain Improvements
GE Aerospace has raised its 2025 outlook for maintenance, repair, and overhaul (MRO) services, anticipating higher shop visit demand. This adjustment boosts commercial unit profit forecasts and reflects overall service segment growth.
The company now projects "low double digits to mid-teens" growth for its MRO services, surpassing its December forecast of just "low double digits." Shop visit volume is expected to rise by high single digits, driven by delays in new aircraft deliveries from Boeing and Airbus. As a result, airlines must maintain older fleets, increasing demand for engines like the CFM56 and GE90. Additionally, GE Aerospace reports improvements in work scope and pricing for its services.
GE Aerospace also reaffirms LEAP engine delivery growth of 15-20%, as projected by partner Safran. This follows CFM International's shipment of 1,407 units in 2024. To address supply chain bottlenecks, GE Aerospace has increased priority supplier shipments to over 90% of committed material volumes, a significant improvement from 50% earlier in 2024. Fourth-quarter LEAP deliveries reached 378 units, while total commercial engine shipments amounted to 519. The company closed the year with $7.6 billion in profit and revenues climbing to $38.7 billion.
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