The company is prioritizing safety, quality, delivery, and cost through its FLIGHT DECK operating model, focusing on services and readiness, production ramp for new engines, and inventing next-generation flight technology.

GE Aerospace is investing in its manufacturing facilities, overhaul facilities, and supply chain to increase production and improve delivery to customers.

The company is investing in technologies such as the RISE program and has completed over 250 tests on developing a full-scale Open Fan engine.

The company is conducting R&D activities, leveraging FLIGHT DECK, to enhance existing products and services, develop new products and services, address new market opportunities, and support regulatory certifications.

The company is leveraging FLIGHT DECK and partnering with suppliers to improve material input and proactively manage the impact of inflationary pressure by driving cost productivity and adjusting the pricing of products and services.

The company is monitoring the production and other challenges at The Boeing Company and continues to align with them on production expectations and assess potential impacts to our business.

The company's defense business is heavily influenced by the spending and policy actions of the U.S. federal government, as well as allied governments that rely on U.S. suppliers to provide products and services important to their national defense.

The perpetrators of such attacks include sophisticated malicious actors, including states and state-affiliated actors targeting critical infrastructure.

A substantial portion of our business is directly tied to economic conditions in the commercial aviation sector, which has historically been cyclical in nature.

The markets in which we operate are highly competitive in terms of pricing, product and service quality, durability and reliability, product development and introduction time, intellectual property, customer service, financing terms, the ability to respond to shifts in market demand and the ability to attract and retain skilled talent.

Competitors may offer substantial discounts and other financial incentives, performance and operating cost guarantees and participation in financing arrangements in an effort to secure an installed base that establishes aftermarket sales associated with these products.

Customer selections for aircraft engines, components and systems can also have a significant impact on future sales of parts and services over the life of an engine platform.

Global material availability and supplier delivery performance continue to cause disruptions and have impacted our production and delivery of equipment and services to our customers.

We are investing in our manufacturing facilities, overhaul facilities and our supply chain to increase production and strengthen yield in order to improve delivery to our customers.

We are leveraging FLIGHT DECK and partnering with suppliers to improve material input and proactively manage the impact of inflationary pressure by driving cost productivity and adjusting the pricing of our products and services.

For example, our past and ongoing investments in advanced technologies such as ceramic matrix composites and additive manufacturing for components have applications across a range of narrowbody and widebody engine applications.

In addition, we are making significant investments in the RISE program suite of technologies to enable a more sustainable future of flight.

And in DPT, leveraging government funding, our investments include the development of advanced propulsion solutions such as adaptive cycle combat engines.

We intend to return a majority of our free cash flow* to shareholders through dividends and share repurchases.

In connection with this new authorization, we repurchased 28.8 million shares for $4.9 billion from April 2024 through December 31, 2024.

GE Aerospace is committed to maintaining strong investment grade ratings with a disciplined capital allocation strategy.

We have been and remain committed to investing in developing and maturing technologies that enable a more sustainable future of flight.

Avio Aero is a strategic partner in Europe supporting the development of indigenous, classified engine technology and a core member of Clean Aviation, significantly contributing to and benefiting from the European Union sustainability roadmap.

Sustaining a Company culture based in Respect for People through leadership behaviors of humility, transparency and focus, with a commitment to unyielding integrity: This culture is an essential part of GE Aerospace's proprietary lean operating model, FLIGHT DECK.

As a global aerospace company, our worldwide operations can be affected by industrial, economic, and political factors on both a regional and global level.

Demand for our equipment and services is demonstrated by our backlog of engine orders and services and growth in our installed base, and tends to follow commercial air travel and freight demand and government funding for defense budgets.

Given the significant business we have with airframers and many airlines, challenges affecting the commercial aviation industry or key participants can adversely impact the demand for our products and services, the timing of orders, deliveries and related payments and other factors.