AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-3: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 4/6 · 28/10/2026
Moat69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · The installed engine base supports a substantial aftermarket franchise, while Ryanair's fleet-wide agreement and orders excluding penalty-free cancellation demonstrate embedded relationships and contractual friction. These establish a current advantage; exclusive servicing rights, quantified switching costs and superiority over rivals remain unproven.
durability · 3/4 · June services obligations extend beyond 15 years, and September RPO growth includes increases to existing long-term agreements. This supports a durable contractual franchise. Recognition schedules are expectations, however, and aircraft retirements, technological change and utilization can impair future demand or economics.
customer dependency · 3/4 · Fleet-wide support for about 2,000 Ryanair engines, increased shop activity and rising spare-parts demand indicate continuing reliance on engine support. Dependency is inferred from operating and contractual evidence rather than measured switching or renewal rates; the passages do not establish that alternative servicing is unavailable.
erosion resilience · 2/4 · Achieved turnaround improvements, delivery growth and continued sequential output gains demonstrate adaptation. Actual material disruptions, increased durability reserves and lower first-half commercial margins show incomplete protection. Certification is achieved, but the LEAP 1-B kit's expected time-on-wing improvement remains prospective.
Pricing power63
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
realized pricing · 3/4 · The first-half disclosure explicitly attributes services growth partly to pricing and equipment growth partly to improved pricing, establishing realized outcomes. Increased allowances on installations and spare parts temper the inference: the passages do not quantify net price realization after concessions or separate price from volume and mix.
retention · 3/4 · Ryanair's long-term fleet-wide agreement, increases to existing service agreements and growing shop activity demonstrate continuing demand. This is indirect contractual and operating evidence of retention. RPO excludes penalty-free cancellations, but does not establish renewal rates or show that customers accept every proposed price increase.
margin resilience · 2/4 · FY2025 operating margin improved, but first-half 2026 commercial segment margin fell to 26.9% from 28.8% despite profit growth and improved pricing. Increased allowances and durability reserves reinforce mixed resilience. These measures have different scopes, and the passages do not isolate inflation, mix and reserve effects.
contractual freedom · 2/4 · Realized pricing improvements and commercial actions increasing existing service obligations demonstrate some ability to adjust economics. Government contracts impose pricing and adjustment requirements and permit customer modification or termination. Commercial escalation, repricing and termination provisions remain missing, preventing a stronger assessment of unrestricted pricing discretion.
Predictability73
5 consecutive published annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 50.00
- Revenue growth volatility (pp)
- 22.72
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 4.52
- observedAnnualPeriods
- 5.00
Financial strength—
Missing required inputs: netDebtEbitGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or reported pretax profit plus reported gross interest expense. Reported EBIT is distinct from GAAP operating income and gross interest. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 73.98
- interestCoverageGrade
- 78.90
- currentRatioGrade
- 23.32
- Debt / FCF (x)
- 2.82
- Current ratio (x)
- 1.04
- cashInterestPaid
- 882.00
- cashInterestCoverage
- 9.68
Capital allocation—
Missing required inputs: operatingReturn. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or EBIT calculated from reported pretax profit plus reported gross interest expense; the issuer-reported EBIT is distinct from GAAP operating income and gross interest; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. ROIC remains undefined for nonpositive invested capital; the explicit asset-return alternative does not change the ROIC chart. Missing financial inputs alone never trigger an alternative. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- -7.78
- 3-year average SBC / revenue (%)
- 0.63
- cashConversionGrade
- 58.71
Management69
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Rising operating cash generation and investment accompanying delivery growth support discipline, while first-half financing outflows exceeded operating inflows. The proposed $11.75 billion CPP purchase requires $7 billion cash plus debt. Its valuation and projected returns add execution risk; acquisition returns and repurchase value creation remain unproven.
incentive alignment · 3/4 · Financial performance incentives, generally three-year equity vesting and an actual historical downward PSU adjustment demonstrate alignment mechanisms in use. Disclosed ownership requirements and named-executive compliance strengthen the assessment. Shareholders approved the amended LTIP and ESPP in May; approval does not establish subsequent awards, participation or vesting.
execution · 3/4 · Actual delivery growth, deployed durability kits, faster turnaround and increased nine-month operating cash generation support strong execution. Management attribution is partly indirect. Material disruptions and durability reserves remain counterevidence, while the newly certified kit's projected durability gain and CPP's forecast benefits are excluded from demonstrated outcomes.
governance · 3/4 · Annual majority elections, shareholder meeting rights, clawback provisions and independent audit oversight provide strong formal safeguards. Actual elections and the independent Lead Director appointment substantiate implementation. Strong 2026 compensation voting improves on weaker historical support, although newly adopted exclusive-forum provisions restrict shareholders' choice of litigation venue.
Evidence
The Company’s installed base of approximately 50,000 commercial and 30,000 military engines, including parked aircraft in addition to fleet in service, supports its aftermarket services business, representing approximately 70% of revenue.
2026 second-quarter Form 10-Q, filed 2026-07-16: installed engines and aftermarket revenue scope · Filed 16/07/2026
Ryanair signed a long-term material services agreement to support Ryanair's entire fleet of about 2,000 CFM56 and LEAP engines powering its Boeing 737 aircraft.
2026 second-quarter Form 10-Q, filed 2026-07-16: Ryanair fleet-wide material services agreement · Filed 16/07/2026
Remaining performance obligation (RPO) is unfilled customer orders for products and product services (expected life of contract sales for product services) excluding any purchase order that provides the customer with the ability to cancel or terminate without incurring a substantive penalty.
2026 third-quarter Form 10-Q, filed 2026-10-20: RPO definition and cancellation-penalty exclusion · Filed 20/10/2026
RPO
September 30, 2026
December 31, 2025
Equipment
$
33,337
$
27,534
Services
178,747
163,029
Total RPO
$
212,084
$
190,564
As of September 30, 2026, RPO increased $21.5 billion, or 11%, from December 31, 2025, primarily at CES, as a result of commercial actions and increases to existing long-term service agreements, and at DPT, driven by Defense & Systems equipment orders outpacing revenue recognized.
2026 third-quarter Form 10-Q, filed 2026-10-20: September 30 RPO and growth drivers · Filed 20/10/2026
We expect to recognize revenue as we satisfy our remaining performance obligations as follows: (1) equipment-related remaining performance obligation of $32,085 million, of which 32%, 54% and 91% is expected to be satisfied within 1, 2 and 5 years, respectively; and (2) services-related remaining performance obligation of $178,705 million, of which 12%, 40%, 66% and 82% is expected to be recognized within 1, 5, 10 and 15 years, respectively, and the remaining thereafter.
2026 second-quarter Form 10-Q, filed 2026-07-16: equipment and services RPO recognition horizons · Filed 16/07/2026
Services revenue increased due to increased internal shop visit volume and workscopes, higher spare parts volume and pricing.
2026 second-quarter Form 10-Q, filed 2026-07-16: realized services revenue drivers · Filed 16/07/2026
Equipment revenue increased, driven by increased engine deliveries and improved pricing.
2026 second-quarter Form 10-Q, filed 2026-07-16: equipment deliveries and improved pricing · Filed 16/07/2026
These investments combined with improved material availability contributed to internal shop visit revenue growth of 30% in the first half of 2026, and total engine deliveries and LEAP engine deliveries increases of 37% and 41%, respectively.
2026 second-quarter Form 10-Q, filed 2026-07-16: first-half shop activity and engine delivery growth · Filed 16/07/2026
Spare parts sales and aftermarket service trends are affected by similar factors, including usage, pricing, new product offerings, technological improvements, regulatory changes and the retirement of older aircraft.
2025 Form 10-K, filed 2026-01-29: aftermarket demand sensitivities · Filed 29/01/2026
Global material availability continues to cause disruptions and have impacted our production and delivery of equipment and services to our customers.
2026 second-quarter Form 10-Q, filed 2026-07-16: actual material availability disruptions · Filed 16/07/2026
Sales discounts and allowances increased $956 million during the six months ended June 30, 2026, primarily due to increases in allowances on new engine installs and spare parts, as well as product durability reserves at CES.
2026 second-quarter Form 10-Q, filed 2026-07-16: first-half sales allowances and durability reserves · Filed 16/07/2026
SEGMENT REVENUE AND PROFIT Three months ended June 30 Six months ended June 30 2026 2025 2026 2025 Equipment $ 2,297 $ 1,765 $ 4,399 $ 3,514 Services 7,434 5,881 14,251 10,796 Total segment revenue $ 9,731 $ 7,646 $ 18,650 $ 14,309 Segment profit $ 2,657 $ 2,208 $ 5,012 $ 4,118 Segment profit margin 27.3 % 28.9 % 26.9 % 28.8 % For the three months ended June 30, 2026, revenue was up $2.1 billion, or 27%, and profit was up $0.4 billion, or 20%, compared to the three months ended June 30, 2025.
2026 second-quarter Form 10-Q, filed 2026-07-16: commercial segment revenue, profit and margins · Filed 16/07/2026
These regulations impose a broad range of requirements, many of which are unique to government contracting, including various procurement, import and export, security, contract pricing and cost, contract termination and adjustment, audit, product integrity and government accounting requirements.
2025 Form 10-K, filed 2026-01-29: government contract pricing and adjustment requirements · Filed 29/01/2026
Government Contracts. The U.S. government and our other government customers often have the ability to modify, curtail or terminate their contracts and subcontracts with us either at their convenience or for default based on performance.
2025 Form 10-K, filed 2026-01-29: government termination and modification rights · Filed 29/01/2026
GAAP FY25 FY24 Y/Y REPORTED NON-GAAP* FY25 FY24 Y/Y REPORTED Total Revenue $ 45,855 $ 38,702 18 % Adjusted Revenue $ 42,322 $ 35,121 21 % Profit $ 10,000 $ 7,620 31 % Operating Profit $ 9,055 $ 7,253 25 % Profit Margin 21.8% 19.7% 210 bps Operating Profit Margin 21.4% 20.7% 70 bps Continuing EPS $ 8.05 $ 6.09 32 % Adjusted EPS $ 6.37 $ 4.60 38 % Cash from Operating Activities $ 8,543 $ 5,817 47 % Free Cash Flow (FCF) $ 7,694 $ 6,203 24% * Non-GAAP Financial Measures.
2026 proxy statement, filed 2026-03-12: FY2025 versus FY2024 financial performance, including non-GAAP measures · Filed 12/03/2026
Cash from operating activities was $7.3 billion for the nine months ended September 30, 2026, an increase of $0.9 billion compared to 2025, primarily due to: an increase in net income (after adjusting for depreciation of property, plant, and equipment, and amortization of intangible assets) driven by all segments, an increase in sales discounts and allowances, partially offset by higher working capital growth.
2026 third-quarter Form 10-Q, filed 2026-10-20: nine-month operating cash generation and drivers · Filed 20/10/2026
Cash used for additions to property, plant and equipment and internal-use software net of dispositions (components of free cash flow*) was $0.6 billion and $0.5 billion for the six months ended June 30, 2026 and 2025, respectively.
2026 second-quarter Form 10-Q, filed 2026-07-16: first-half capital spending · Filed 16/07/2026
Cash used for financing activities was $(6.4) billion for the six months ended June 30, 2026, an increase of $0.9 billion compared to 2025, primarily due to: an increase in treasury stock repurchases of $0.8 billion and higher dividends paid to shareholders of $0.2 billion, partially offset by lower debt maturities of $0.2 billion.
2026 second-quarter Form 10-Q, filed 2026-07-16: financing cash outflows, repurchases and dividends · Filed 16/07/2026
+3 years +6 years 7 Strong near and long - term value creation for customers and shareholders ~$200M Net synergies > 2x Productivity Supply chain & procurement Other Purchase price of $11.75B, e xpect transaction closes in the second half of 2027 ▪ Values CPP at ~18x 2027 EBITDA including expected net synergies, ~26x without ▪ Financed with existing cash and new debt ▪ No change to capital allocation plans ▪ Double digit ROIC by year 5 Leveraging FLIGHT DECK to create value ▪ Increased yield and machine utilization, reduced scrap, and streamlined supply chain ▪ Net of planned CapEx and OpEx investments * Non - GAAP Financial Measure (a – Excluding one - time costs and deal related amortization Adjusted EPS* and free cash flow* accretive - a) in year 1
CPP acquisition presentation, filed 2026-09-08: proposed valuation, financing, expected closing and projected returns · Filed 08/09/2026
This transaction will deliver strong near and long-term value creation for
customers and shareholders:
·
Purchase price of $11.75 billion to be financed with $7 billion in cash, with
the remainder in new debt
·
Values CPP at ~18x 2027 EBITDA including expected net synergies, multiple
of ~26x without
·
The acquisition is expected to be accretive-a) to adjusted EPS*
CPP acquisition announcement, filed 2026-09-08: purchase price, planned cash and debt financing, and valuation · Filed 08/09/2026
Fixed Performance‑Based / At‑Risk Short‑Term Incentive Long‑Term Equity‑Based Incentive (generally 3‑year vesting) Component SALARY ANNUAL BONUS PERFORMANCE STOCK UNITS STOCK OPTIONS RESTRICTED STOCK UNITS Link to Shareholder Value Provides competitive base pay aligned with roles and responsibilities to attract and retain top talent Incentivizes delivery on annual investor framework Serves as key compensation vehicle for differentiating performance each year Focus on achievement of financial performance goals aligned with our operating and strategic plans, with a relative TSR modifier based on three‑year return from stock price appreciation and dividends Provide a significant stake in the long‑term financial success of GE Aerospace that is aligned with shareholder interests, and promote employee retention Reward stock price appreciation over time Provide for additional ownership stake in the company, and promote employee retention Target Annual Program Compensation The table below shows the total target annual program compensation for our current named executives as of December 31, 2025.
2026 proxy statement, filed 2026-03-12: annual and long-term executive incentive design · Filed 12/03/2026
Conversely, our TSR performance being below that of the peer group for 2021 and 2022 adversely affected our named executives’ equity award compensation, resulting in a downward adjustment to the value of the 2021 PSU awards, for which three‑year TSR performance is a modifier.
2026 proxy statement, filed 2026-03-12: actual downward adjustment to 2021 PSU awards · Filed 12/03/2026
All named executives are in compliance with our stock ownership requirements.
2026 proxy statement, filed 2026-03-12: named executives' ownership-requirement compliance · Filed 12/03/2026
STOCK OWNERSHIP REQUIREMENTS (MULTIPLE OF BASE SALARY)
10X
for CEO
3X
for senior vice presidents
HOLDING PERIOD REQUIREMENTS.
2026 proxy statement, filed 2026-03-12: executive stock ownership requirements as salary multiples · Filed 12/03/2026
•Continued to advance technologies to deliver greater durability and predictability for customers, including deploying ~1,450 LEAP-1A durability kits to customers across new engine production and global overhaul shops since certification and improving turnaround times for the LEAP, CFM56, and GE90 by over 10% year-over-year in the fourth quarter of 2025.
2026 proxy statement, filed 2026-03-12: deployed durability kits and achieved fourth-quarter 2025 turnaround improvements · Filed 12/03/2026
However, through FLIGHT DECK and the engagement with our suppliers, we are taking actions to mitigate these impacts and our aftermarket output and engine deliveries have continued to improve quarter over quarter.
2026 third-quarter Form 10-Q, filed 2026-10-20: reported sequential aftermarket output and delivery improvements · Filed 20/10/2026
We recently completed the certification for the LEAP 1-B durability kit, including the upgraded HPT blade, which is expected to deliver approximately double time-on-wing for that engine.
2026 second-quarter Form 10-Q, filed 2026-07-16: LEAP 1-B kit certification and expected durability benefit · Filed 16/07/2026
Member Chair Financial Expert Key Corporate Governance Practices •8 out of 9 director nominees are independent •Annual election of all directors by majority vote •No supermajority vote provisions in governing documents •Annual review of Board leadership structure •Annual Board and committee self‑evaluations •Strong lead director with clearly delineated duties •Dual‑pronged Board refreshment mechanisms (age & term limits) •Regular executive sessions of independent directors •Board and committees may hire outside advisors independently of management •Proactive year‑round shareholder engagement program •Rigorous succession planning for key leadership roles •Clawback policy that applies to all cash and equity incentive awards •Prohibition on hedging & pledging •Strong stock ownership guidelines •“Overboarding” limits for directors •No poison pill or dual‑class shares •Shareholder right to call special meetings (at 10%) •Proxy access by‑law provisions on market terms •Shareholder approval of certain severance benefits GE Aerospace 2026 Proxy Statement 7 Governance Nominee Biographies H.
2026 proxy statement, filed 2026-03-12: governance practices and nominee independence · Filed 12/03/2026
(b) At the Annual Meeting, shareholders elected all of the Company's nominees for director; approved the advisory vote on the Company's named executives' compensation ("Say on Pay"); approved the Amendment and Restatement of the 2022 Long-Term Incentive Plan ("Amended LTIP"); approved the GE Aerospace Global Employee Stock Purchase Plan ("ESPP"); and ratified the appointment of Deloitte & Touche LLP as the Company's independent auditor for 2026 ("Auditor Ratification").
Annual meeting results, filed 2026-05-07: actual director elections and compensation-plan approvals · Filed 07/05/2026
Say on Pay
753,387,208
27,686,972
3,930,563
107,761,682
2.
Annual meeting results, filed 2026-05-07: 2026 say-on-pay voting results · Filed 07/05/2026
Item 8.01 Other Events.
On September 21, 2026, the independent directors of the Board appointed Wesley Bush to be the independent Lead Director, effective as of that date.
Form 8-K, filed 2026-09-22: independent Lead Director appointment effective September 21 · Filed 22/09/2026
•designate (i) the New York Supreme Court or, if such court does not have jurisdiction, the federal district courts in the State of New York or other state courts in the State of New York, as the exclusive forum for bringing derivative actions, claims of breach of a fiduciary duty and other specified actions under New York corporate law, and (ii) the federal district courts of the United States of America as the exclusive forum for bringing claims under the Securities Act of 1933, as amended, in each case, unless the Company otherwise consents in writing to the selection of an alternative forum.
Form 8-K, filed 2026-06-25: adopted exclusive-forum bylaw provisions · Filed 25/06/2026
The Board of Directors, through its Audit Committee, which consists entirely of independent directors, meets periodically with management, internal auditors and our independent registered public accounting firm to ensure that each is meeting its responsibilities and to discuss matters concerning internal controls and financial reporting.
2025 Form 10-K, filed 2026-01-29: independent Audit Committee oversight · Filed 29/01/2026
We received 71% support for our say-on-pay vote in 2025, following support of 94% in 2024 and 94% in 2023.
2026 proxy statement, filed 2026-03-12: historical 2025 and prior-year say-on-pay support · Filed 12/03/2026
