GE Aerospace CEO Larry Culp used a Farnborough Air Show appearance on CNBC this morning to spotlight its advanced technology and strong second-quarter results. GE Aerospace (NYSE:GE | GE Price Prediction) said its testbed aircraft flew across the Atlantic under partial hybrid electric power to reach the show, then delivered a Q2 report that put commercial services growth, engine deliveries, and aftermarket spare parts all on the same steep trajectory.
Culp framed the flight as a technology proof point. “We had the first ever high altitude hybrid electric flight crossing the Atlantic to bring that plane here. This is a first of its kind. And as you might imagine, we’re terribly excited,” he said, describing the SAAB A340 testbed program run in collaboration with Boeing (NYSE:BA), Beta Technologies, and NASA. He was careful to set realistic expectations: “Hybrid electric is a key part of that. So nothing imminent in terms of a product launch. But this is a strong proof point that hybrid electric will be part of that next generation commercial offering.“
The Numbers Behind the Headline
GE Aerospace saw revenues increase 21% in the quarter, and earnings per share were up 22% year over year. Total engine deliveries were up 31% in the first half of the year, and aftermarket spare parts revenues were up over 30% in the same window. Commercial Engines & Services were up 27% to $9.73 billion, and Defense & Propulsion Technologies were up 16% to $3.44 billion. Free cash flow reached $3.03 billion.
Management lifted full-year 2026 guidance to adjusted EPS of $7.65 to $7.85, operating profit of $10.55 to $10.75 billion, and free cash flow of $8.90 to $9.20 billion.
A $210 Billion Order Book
The demand signal driving those numbers is a backlog Culp put at $210 billion between new engines and aftermarket services. “Customers that we talk to are very keen to see us continue to ramp in partnership with our airframe partners,” he said. That ramp is tied directly to Boeing, whose 737 program is running at 42 per month and 787 program at 8 per month, with a Boeing commercial backlog of $695 billion. LEAP engines power the 737 MAX, and GEnx powers the 787.
Q2 also brought LEAP engine deliveries up 24%, with recent commercial wins including a Copa Airlines agreement for up to 120 LEAP-1B engines and a Turkish Aerospace agreement for F404 engines on the HÜRJET trainer.
Durability Kits and Time on Wing
Culp also updated investors on the LEAP durability kit rollout, a fix aimed at improving time on wing in hot and harsh operating environments. “Our narrowbody engine, our LEAP engine, saw a durability kit introduced last year on the Airbus version of that engine. We’ve got 40% of the fleet retrofitted already performing very well,” he said. GE has previously said the LEAP-1B durability kit is now certified, targeting roughly a 2x improvement in time on wing, with full cutover expected at the beginning of 2027.
What to Watch
GE shares opened at $348.83 on Monday, July 20, up 13.55% year to date and up 34.7% over one year, against a Wall Street analyst target price of $397.86. Boeing sits at $214.03, down 1.42% year to date, a divergence that captures which side of the airframe-engine partnership has been executing at scale.
Hybrid-electric flight remains a multi-year technology bet. But GE Aerospace’s backlog, retrofit progress, and delivery cadence are already contributing to its financial results. With roughly 50,000 commercial and 30,000 military engines in service, the company enters the second half with pricing, product mix, and services revenue all working in its favor, alongside higher expectations for what counts as a strong quarter.
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