General Electric Company (GE): Business Model Canvas [Dec-2025 Updated]

You're looking at the core engine of the newly focused General Electric Company (GE) after its big split, and honestly, what's left is a pure-play aviation giant built on a massive installed base-think over 39,400 commercial engines-and a service backlog that locks in revenue north of $140 billion. This business model is all about that annuity-like income from long-term service agreements, which is why their 2025 operating profit guidance lands between $8.2 billion and $8.5 billion; it's a masterclass in locking in future cash flow. You need to see exactly how Key Activities like designing the next-gen GE9X and managing that global supply chain support these Value Propositions, so dive into the full Business Model Canvas below to map out the strategy.

General Electric Company (GE) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that keep GE Aerospace, GE HealthCare, and GE Vernova running and growing in late 2025. These aren't just vendors; they are co-developers and essential links in the value chain. For GE Aerospace, the partnerships are particularly critical for maintaining its dominance in propulsion.

CFM International (50/50 joint venture with Safran) for LEAP engine production

The 50/50 joint venture with Safran Aircraft Engines, CFM International, remains the bedrock of GE Aerospace's commercial engine business. The focus is squarely on ramping up the LEAP engine series, which powers the Airbus A320neo family (LEAP-1A) and exclusively the Boeing 737 MAX (LEAP-1B). Honestly, the production ramp has been a major story, but things are finally accelerating.

For the full year 2025, CFM International is projecting LEAP engine deliveries to increase by 15 to 20 per cent year-on-year, targeting a total output between 1,618 and 1,688 new engines. This follows a strong first half where 729 LEAP engines were delivered, which was an increase of 65 units compared to the first half of 2024. Specifically, the second quarter of 2025 saw 410 LEAP engines delivered, marking a 38% increase from the 297 units delivered in Q2 2024. This increased output is helping to clear backlogs, though the profit recognition trigger point for the Leap-1B contracts is still slated for the first half of 2026 upon the introduction of the improved high-pressure turbine blade, the so-called maverick blade.

The financial impact is clear: Safran's propulsion division reported a near-17% rise in first-half propulsion revenues, reaching €7.5 billion ($8.6 billion). Here's the quick math on the scale of this operation:

Metric	Value (2025 H1/Projection)	Context
Total LEAP Deliveries (H1 2025)	729 units	Up 65 units vs. H1 2024
Projected Full-Year 2025 Deliveries	1,618 to 1,688 units	Represents 15-20% growth over 2024
Q2 2025 Deliveries	410 units	38% increase year-over-year
Safran Propulsion Revenue (H1 2025)	€7.5 billion ($8.6 billion)	Driven by OE sales and aftermarket services
Leap-1B Profit Recognition Trigger	First half of 2026	Dependent on 'maverick blade' introduction

Major airframers like Boeing and Airbus for engine integration

You can't sell engines without the airframes to put them on, so the relationship with Boeing and Airbus is non-negotiable. GE Aerospace is actively engaged in forward-looking integration studies, such as a joint effort with Boeing, NASA, and the U.S. Department of Energy modeling the Open Fan-airplane integration, with flight tests planned this decade alongside Airbus for similar concepts.

The current order book shows the strength of these ties. For instance, Emirates recently expanded its commitment to the Boeing 777X family, signing an agreement for 130 additional GE9X engines to power 65 more Boeing 777-9 aircraft. This single commitment brings Emirates' total GE9X engines on order to over 540, with the associated aircraft order valued at approximately US$ 38 billion for the airframes and engines combined. This deepens a decades-long partnership, showing confidence in GE Aerospace's largest commercial engine.

Kratos for next-generation military propulsion technology defintely

The collaboration with Kratos Defense & Security Solutions is a clear strategic move to capture the growing market for affordable, next-generation unmanned aerial systems (UAS) and Collaborative Combat Aircraft (CCA-type) platforms for the Department of Defense. This formal teaming agreement builds on prior work, focusing on speed and cost-effectiveness.

The partnership is developing a family of small, high-thrust turbofan propulsion systems. Key projects include:

• The GEK800 Engine, which provides 800 pounds of thrust, initially targeted for cruise missiles.
• The GEK1500 Engine, which is on track for a demo in 2026 and is designed to deliver 1,500 pounds of thrust for reusable or expendable CCAs.

Kratos brings over two decades of experience in creating cost-effective small engines, while GE Aerospace provides the expertise to scale advanced designs for high-rate production. This combination is designed to offer affordable mass propulsion solutions.

Global network of Maintenance, Repair, and Overhaul (MRO) providers

The aftermarket services are a huge, high-margin component of the business, and they rely on a vast, certified MRO network. GE Aerospace supports its installed base-which includes 78,000 commercial engines generating 2.3 billion flight hours-through authorized partners. For example, some MRO providers hold LEAP CFM Branded Service Agreement licenses to perform maintenance. In 2023, GE's technical support revenue included $4.2 billion specifically from aviation maintenance services. This network is crucial for maintaining engine safety and maximizing time-on-wing for customers.

Strategic suppliers for critical raw materials and components

Scaling production, especially for high-demand engines like the LEAP, puts immense pressure on the raw material and component supply base. To combat this, GE Aerospace announced a significant commitment in early 2025: an investment of nearly $1 billion in U.S. manufacturing and its external supplier base. Specifically, over $100 million of that funding is earmarked to go directly to the external supplier base. The goal is to ensure these partners utilize the newest tools to reduce defects and overcome any lingering supply chain constraints, which is vital for maintaining the production rates needed to satisfy Boeing and Airbus.

General Electric Company (GE) - Canvas Business Model: Key Activities

You're looking at the core engine of General Electric Company (GE) Aerospace, the part that actually builds and services the hardware. It's a capital-intensive operation, so the numbers here tell the real story of their commitment to the future of flight.

Designing and manufacturing commercial and military jet engines

The manufacturing side is running hot, driven by a massive backlog. You see this in the sheer volume of orders they are booking, especially for the CFM International LEAP engine, which is key for the narrowbody market.

• Total orders reached $12.3 billion in the first quarter of 2025.
• Last quarter (Q2 2025), they landed orders for 1,049 aircraft engines.
• This included 860 CFM International Leap powerplants.
• The total order backlog stands at a record $175 billion.
• The installed base is massive: over 45,000 commercial engines and 25,000 military engines.

GE Aerospace, through its joint venture with Safran, powers three out of every four commercial engine flights globally.

Executing long-term engine service and maintenance contracts

This is where the predictable, high-margin cash comes from. Airlines are holding onto older jets longer due to airframer delivery delays, which means more shop visits and spare parts sales for GE Aerospace.

Metric	Value/Percentage	Context/Period
Services Revenue Share (Commercial)	More than 70%	Of Commercial Engines & Services revenue
Services Revenue Growth	17%	Year-over-year in Q1 2025
Projected Services Revenue	$20 billion	By 2030
2024 Services Revenue Baseline	$10 billion
Total Backlog Value	$175 billion	As of Q2 2025

Investing approximately $1 billion annually in R&D for future flight

The company is definitely putting money into what's next. While the prompt specifies the approximation, the actual reported figures give you a clearer picture of the scale of investment in innovation.

• Investing approximately $1 billion annually in R&D for future flight.
• GE Aerospace Research and Development Expenses for the twelve months ending September 30, 2025, were $1.518B.
• In 2024, the company invested approximately $2.7 billion in R&D.

Managing a complex, global aerospace supply chain

Navigating supply chain constraints is a top activity, requiring significant capital deployment to secure materials and increase domestic capacity. This is a direct action to support the manufacturing ramp.

• Plans to invest nearly $1 billion in U.S. factories and supply chain in 2025.
• This 2025 investment is nearly double the commitment from the prior year.
• Plans include hiring around 5,000 U.S. workers in 2025.
• Supply chain challenges are estimated to cost the global airline industry over $11 billion in 2025.

Driving operational efficiency through the FLIGHT DECK system

FLIGHT DECK, their proprietary lean operating model launched in 2024, is the mechanism used to translate these investments into measurable results on the shop floor. It's all about Safety, Quality, Delivery, and Cost (SQDC)-in that order.

• FLIGHT DECK helped boost material inputs from priority suppliers by 8% sequentially in early 2025.
• At the Pune facility, FLIGHT DECK helped reduce the lead time for LEAP HPT ACC manifolds model line by 50 per cent.
• The system is in action across operations, from Lynn, Massachusetts, to On-Wing Support sites.

Finance: draft 13-week cash view by Friday.

General Electric Company (GE) - Canvas Business Model: Key Resources

You're looking at the core assets that keep GE Aerospace running and innovating. These aren't just things on a balance sheet; they are the engines of future revenue, especially from services.

The sheer scale of the installed base is a massive barrier to entry for competitors. This installed base drives the high-margin, recurring service revenue that is central to GE Aerospace's financial story. As of late 2025, the installed base is reported as approximately 49,000 commercial and 29,000 military aircraft engines. This represents a massive installed fleet, with the combined commercial and military engines reaching nearly 70,000 units.

The company's commitment to staying ahead is clear in its technology pipeline and investment in its people. Here's a look at the tangible and intangible assets:

• Installed base of over 49,000 commercial and 29,000 military engines.
• Proprietary engine technology including the GE9X, which Emirates ordered 130 units for its Boeing 777-9 fleet.
• Advanced programs like the CFM RISE technology demonstrator program.
• Hybrid electric propulsion demonstrators, including the megawatt-class EPFD program.
• A global team of approximately 53,000 employees.
• GE Aerospace Research Center employs over 750 researchers across 31 labs.
• Total of 85,038 patents globally, with 65,909 active patents as of April 2025.

The investment in future capability is significant. For the twelve months ending September 30, 2025, GE Aerospace research and development expenses reached $1.518B, a 52.56% increase year-over-year. This R&D supports the development of advanced materials and manufacturing processes.

You can see the physical commitment to manufacturing capacity in the 2025 capital plans. GE Aerospace planned to invest nearly $1 billion in U.S. factories and the supply chain in 2025. This investment is spread across key operational areas:

Location/Area	Investment Amount (USD)	Purpose Detail
Greater Cincinnati Sites	$113 million	Facility upgrades for commercial and military engine production and assembly.
Military Engine Production Sites	$200 million	Gearing up for new T901 Black Hawk/Apache engine and continuing other production.
Durham, North Carolina	$16 million	Additional equipment for commercial engine assembly, including LEAP.
West Jefferson, North Carolina	$13 million	Expanding building to increase production of key engine parts.
Lafayette, Indiana	$5 million	Additional equipment for commercial engine assembly.

The intellectual property portfolio is actively managed, focusing on next-generation capabilities. The company is developing critical hybrid electric components and advancing technologies like Ceramic Matrix Composites (CMCs) and 3D printed engine parts. The patent activity shows a focus on innovation, with 28 patent applications filed in 2025 (as of April). The company's global footprint is also a resource, as its engines power three out of every four commercial flights around the world.

The human capital is growing, too. GE Aerospace announced plans to hire around 5,000 U.S. workers in 2025, covering both manufacturing and engineering roles. That follows hiring over 900 engineers and 1,000 manufacturing workers the prior year.

If onboarding those 5,000 new hires takes longer than expected, quality control in the supply chain could see near-term pressure. Finance: draft 13-week cash view by Friday.

General Electric Company (GE) - Canvas Business Model: Value Propositions

You're looking at the core promises General Electric Company (GE) Aerospace makes to its customers, which are heavily weighted toward long-term performance and sustainability in the air and defense sectors. The value here isn't just the metal; it's the guaranteed outcome over decades of service.

For commercial aviation, the headline is efficiency. The Revolutionary Innovation for Sustainable Engines (RISE) technology development program is targeting a 20% improvement in fuel efficiency when the engine enters service, which GE targets for 2035. This 20% reduction in fuel burn is meant to be achieved by unlocking propulsive efficiency, largely through the Open Fan architecture. This focus on efficiency directly translates to lower operating costs for airlines and a reduced carbon footprint, which is a major value driver in today's market.

Guaranteed long-term engine performance is delivered through comprehensive service agreements. This is backed by a massive installed base and a significant backlog. As of the end of the first three months of 2025, the service backlog stood at over $140 billion. By the second quarter of 2025, the total backlog for GE Aerospace had grown to a record $175 billion, with $90 billion specifically in commercial services orders. This backlog provides revenue visibility and underpins the long-term service value proposition.

For the largest commercial jets, GE Aerospace provides high-thrust, reliable power. The GE9X engine, for instance, is the powerplant for the Boeing 777X aircraft. The composite fan blades used in engines like the GE9X benefit from millions of flight hours of operational data, reinforcing durability claims.

The defense sector values thrust, reliability, and adaptability. The value proposition here is demonstrated through significant contract wins and proven in-service performance metrics.

• The F110 engine has accumulated over 11 million flight hours.
• The XA100 Adaptive Cycle Engine offers a transformational leap in fuel efficiency, thrust, and thermal management.
• The company is advancing hybrid electric propulsion systems for both commercial and defense applications.

Here's a quick look at some recent defense-related contract values and performance milestones that define this value stream as of late 2025:

Propulsion System/Program	Value/Metric	Context/Application
F110-GE-129 IDIQ Contract	Up to $5 billion	Foreign Military Sales for F-15 and F-16 aircraft
F404-IN20 Engine Agreement (HAL)	Over $1 billion	Supply of 113 engines for TEJAS MK-1A fighters
Next Generation Adaptive Propulsion (NGAP) Contract Ceiling	$3.5 billion (each)	Development contract with the U.S. Air Force
F404-IN20 Deliveries (FY2025 commitment)	12 engines	Commitment by conclusion of fiscal year 2025 to HAL

The comprehensive service backlog directly translates to reduced operational risk for customers. When you have a backlog exceeding $140 billion in services, as reported in Q1 2025, it signals a commitment to long-term support, which mitigates the risk of unexpected downtime for operators. This service depth, combined with the $175 billion total order book by Q2 2025, shows customers are locking in future performance and support, which is a key risk reducer in high-stakes industries like aviation and defense. Finance: draft 13-week cash view by Friday.

General Electric Company (GE) - Canvas Business Model: Customer Relationships

You're looking at the relationship strategy for General Electric Company (GE) Aerospace now that it's a pure-play aviation leader. The focus is intensely on locking in long-term value through service agreements, which is where the real, predictable money is made post-sale. This isn't about one-off equipment sales; it's about decades of support for those engines.

Dedicated, long-term relationship management for major airlines

For the major airlines, the relationship is cemented through deep, multi-year commitments. The sheer size of the installed fleet drives this. For instance, in the second quarter of 2025, revenue from Commercial Engines & Services (CES) alone hit $8.0 billion, which was up 30% year-on-year, with services growing 29% in that quarter. This recurring revenue stream is the bedrock of the relationship. The company is actively managing this base, as evidenced by the investment of $1 billion in domestic production in 2025, helping to secure the supply chain for these critical customers.

Strategic, high-level engagement with government defense agencies

Engagement with government defense agencies is strategic and focused on national security priorities. The Defense & Propulsion Technologies (DPT) segment is a key relationship holder here. For 2025, DPT expects to deliver an operating profit between $1.1 billion and $1.3 billion. This segment anticipates mid-single-digit to high-single-digit revenue growth for the full year. These relationships are high-stakes, involving platforms like the T901 engine, and require consistent, high-level communication regarding program milestones and budget cycles.

Performance-based service contracts (LTSAs) for predictable costs

The Long-Term Service Agreements (LTSAs) are the primary mechanism for predictable costs for the customer and predictable revenue for General Electric Company (GE). These contracts cover maintenance, repair, and overhaul services. The confidence in this model is reflected in the record backlog, which stood at roughly $175 billion as of mid-2025, up from $140 billion at the end of the first quarter. The CES segment is projected to achieve high-teens revenue growth in 2025. This structure helps customers budget for maintenance, shifting risk and ensuring fleet availability.

Here's a quick look at the segment-level customer focus based on 2025 expectations and recent performance:

Customer-Facing Segment	2025 Operating Profit Expectation	Recent Services Revenue Growth (Q2 2025 YoY)	Total Backlog Supported
Commercial Engines & Services (CES)	$8.0 to $8.2 billion	29%	$175 billion (Total Backlog)
Defense & Propulsion Technologies (DPT)	$1.1 to $1.3 billion	Not explicitly detailed as a percentage for services only

Direct sales and engineering support for airframe manufacturers

Direct engagement with airframe manufacturers like Boeing and Airbus involves the initial sale and subsequent engineering alignment for new engine programs. The company landed orders for 1,049 aircraft engines in the second quarter of 2025, including 860 CFM International LEAP powerplants. This volume requires intense, direct engineering collaboration to ensure integration and performance guarantees. The overall TTM revenue for General Electric Company (GE) as of Q3 2025 was approximately $43.95 billion, showing the scale of the equipment and services flowing to these partners.

Digital services and data analytics for fleet optimization

The relationship is increasingly digitized. General Electric Company (GE) uses its proprietary operating model, FLIGHT DECK, to drive improvements that directly benefit the customer's operations, such as achieving an 8% sequential increase in material inputs at priority suppliers in Q2 2025. This operational excellence translates to better delivery and quality for the end-user. The high operating margin of 19.68% (TTM as of Nov 2025) is partly a result of leveraging data analytics to manage costs and service delivery effectively, which ultimately supports the value proposition to the customer.

• Service revenue grew to $6.3 billion in Q1 2025.
• The company expects to deploy over $8.0 billion in cash to shareholders in 2025.
• Q1 2025 profit increased 38% year-over-year, driven by services volume.

If onboarding takes 14+ days, churn risk rises, so speed in digital service deployment is defintely key.

Finance: draft 13-week cash view by Friday.

General Electric Company (GE) - Canvas Business Model: Channels

You're looking at how General Electric Company (GE) Aerospace gets its products and services to market, which is heavily weighted toward high-value, direct engagement channels, especially given the nature of aerospace and defense sales. This isn't a shelf-stocking operation; it's about deep, long-term relationships.

Direct sales force to commercial airlines and defense ministries

The reach of GE Aerospace is massive, supported by its installed base and direct engagement teams. As of early 2024, GE Aerospace and its joint venture partners powered an installed base of approximately 44,000 commercial engines and approximately 26,000 military and defense engines globally. The Commercial Engines & Services (CES) segment, which relies heavily on these direct customer relationships for aftermarket work, saw its services revenue grow by 29% in the second quarter of 2025. For the defense side, the Defense & Propulsion Technologies (DPT) segment reported revenue of $2.6 billion in Q2 2025.

Direct contracts with airframe OEMs (Boeing, Airbus, etc.)

Direct contracts with Original Equipment Manufacturers (OEMs) are critical for engine placement, which locks in future service revenue. GE Aerospace and its partners power three out of every four commercial flights around the world. Recent major commitments show this channel in action:

• Secured new engine commitments with Qatar Airways for more than 400 GE9X and GEnx engines, noted as the largest widebody engine deal in GE Aerospace history.
• Secured an order with IAG for 32 Boeing 787 aircraft powered by GEnx for British Airways.
• Korean Air selected GEnx, GE9X, and LEAP-1B engines to power a mix of 103 Boeing aircraft plus long-term services.

Global network of GE-owned and authorized MRO service centers

The service channel is a core driver of revenue, with aftermarket services generating approximately 70% of GE Aerospace's 2023 adjusted revenue of $32 billion. To support this, GE Aerospace is executing a global investment plan:

• A commitment of $1 billion over five years, starting in 2024, is being poured into its Maintenance, Repair, and Overhaul (MRO) network.
• GE Aerospace delivers MRO services directly through six GE Aerospace overhaul facilities, alongside joint venture and alliance service shops globally, plus five dedicated component repair facilities.
• The company operates 19 MRO and component repair sites globally, all slated for upgrades from the $1 billion investment.
• Singapore is the company's largest component repair site, handling over 60% of global repair volume.

The focus on capacity expansion is clear, with plans to double LEAP engine shop visit capacity in Malaysia within the next three years. In the Middle East, a $10 million investment across Dubai and Doha facilities spans 2024 and 2025, aiming for a 30% increase in workforce at those On Wing Support (OWS) sites.

Digital platforms for spare parts ordering and technical documentation

Digital channels are integrated into the service offering to improve efficiency. Spare parts revenue for GE Aerospace saw growth of more than 20% in the first quarter of 2025. Industry-wide, integrating e-commerce platforms with logistics systems is a key trend, allowing for seamless order processing and a 25% improvement in on-time delivery performance in related sectors. Furthermore, digital platforms using telematics can reduce unplanned downtime by 45% in the aerospace sector.

Government procurement processes for military sales

Sales to defense ministries flow through established government procurement channels, including Direct Commercial Sales (DCS) and Foreign Military Sales (FMS). Data from mid-2025 shows significant activity:

Metric	Amount/Value	Context/Date
Total Award Payments Seen (Last Year)	$3,180,260,050	Payments to General Electric Company from DoD, as of June 2025.
Largest Single Payment Seen	$478,432,376	For F-15EX LOTS 2+ Propulsion System Procurement.
Q2 2025 DPT Revenue	$2.6 billion	Defense & Systems revenue for GE Aerospace.
2025 DPT Operating Profit Guidance (Raised)	$1.2 billion to $1.3 billion	Post-Q3 2025 update.

In fiscal year 2023, Direct Commercial Sales (DCS) for the defense industry rose by 2.5% to $158 billion, which included a $1.8 billion order from India for GE Aerospace F414 jet engines. The DPT segment is now expected to deliver revenue growth in the high-single-digits for the full year 2025.

General Electric Company (GE) - Canvas Business Model: Customer Segments

You're looking at the customer base for the remaining General Electric Company (GE), which is now singularly focused on aerospace, and the data shows a clear concentration in high-value, long-term B2B relationships. The core of the business is servicing an installed base of around 70,000 commercial and defense engines worldwide, which underpins a massive services backlog of roughly $175 billion as of late 2025.

The customer segments are highly specialized and capital-intensive. Here's how the major groups break down based on recent major commitments and delivery forecasts for the 2025 fiscal year:

• Global commercial passenger and cargo airlines (e.g., Qatar Airways, ANA)
• National defense departments and military forces worldwide
• Major commercial and business jet airframe manufacturers (OEMs)
• Independent aircraft leasing companies and financial institutions
• Regional and low-cost carriers utilizing narrow-body jets

The commercial engine segment, Commercial Engines & Services (CES), is the profit engine, expecting revenue growth in the low twenties percentage range for 2025. The defense side, Defense & Propulsion Technologies (DPT), provides critical diversification, with a book-to-bill ratio of 1.4x in Q1 2025.

Major customer wins and delivery forecasts illustrate the direct relationships within these segments. For instance, General Electric Company (GE) secured engine commitments with Qatar Airways for more than 400 GE9X and GEnx engines in Q2 2025, which is noted as the largest widebody engine deal in company history. Also in Q2 2025, they secured a contract with IAG for 32 Boeing 787 aircraft powered by GEnx for British Airways.

The relationship with OEMs is foundational, as General Electric Company (GE) supplies the engines that power their airframes. The company is projecting total commercial engine shipments to rise 19% to 2,273 units in 2025, driven heavily by the LEAP engine, which powers the Airbus A320neo-family jets and Boeing's 737 MAX. The defense customer base is also significant, evidenced by a contract from the U.S. Air Force valued up to $5 billion for F110-GE-129 engines.

Here's a look at the expected engine deliveries for 2025, which directly ties to the volume supplied to the airframe manufacturers and subsequently, the airlines:

Engine Model	2025 Forecasted Unit Deliveries	Primary Airframe Customer
LEAP Family	1,773 units	Airbus A320neo family / Boeing 737 MAX
GEnx	136 units	Boeing 747s and 787s
GE9X	27 units	Boeing 777X
GE90	54 units	Boeing 777

The services component of the customer relationship is where the long-term value is locked in. For Q1 2025, services orders were up 31%, and services revenue grew 17%, with spare parts revenue up more than 20%. This annuity stream is what institutional investors are betting on, as it provides high-margin, predictable revenue regardless of new engine sales cycles.

Other key customer-related financial metrics for the first quarter of 2025 include:

• Commercial Engines & Services (CES) operating profit growth: 35% year-over-year.
• Defense & Systems unit growth: 5% year-over-year.
• Total cash and cash equivalents as of March 31, 2025: $12.4 billion.

The company is actively investing in its U.S. manufacturing base to support these customers, announcing plans to invest nearly $1 billion in U.S. manufacturing and technology and hire over 5,000 U.S. workers in 2025.

General Electric Company (GE) - Canvas Business Model: Cost Structure

The cost structure for the former General Electric Company, now largely represented by its successor entities like GE Aerospace and GE Vernova, is heavily weighted toward fixed and specialized variable costs, reflecting its high-tech, capital-intensive industrial focus.

High fixed costs from R&D and advanced manufacturing facilities are a defining feature. Research and Development spending is substantial across the successor businesses, driving future product development in aerospace propulsion and energy transition technologies. For instance, GE Aerospace reported Research and Development expenses of $1.518 billion for the twelve months ending September 30, 2025. Separately, GE Vernova's Research and Development Expenses for the same period were $1.096 billion. These figures represent significant, ongoing fixed investments necessary to maintain technological leadership.

The capital intensity is evident in planned expenditures. Forecasted Capital Expenditures (CAPEX) for General Electric Company for the fiscal period ending December 2025 is estimated at $1,032 million. This aligns with GE Aerospace's commitment to capacity expansion, planning to invest nearly $1 billion in its U.S. factories and supply chain in 2025, nearly double the $650 million invested in 2024.

Cost Category Component	Entity/Period	Reported/Forecasted Amount
Research & Development (R&D) Expenses	GE Aerospace (TTM ending 9/30/2025)	$1.518 B
Research & Development (R&D) Expenses	GE Vernova (TTM ending 9/30/2025)	$1.096 B
Capital Expenditures (CAPEX) Forecast	General Electric Company (FY Dec 2025)	$1,032 million
U.S. Manufacturing & Supply Chain Investment	GE Aerospace (2025 Plan)	Nearly $1 billion
Manufacturing Facility Investment	GE Aerospace (2024 Actual)	Over $650 million

Significant material costs for specialized alloys and components are a major variable expense, especially for GE Aerospace, which powers a large portion of the global commercial fleet. While a precise dollar figure for total material costs isn't isolated, the pressure on this line item is clear; material inputs increased 26% across GE Aerospace's priority supplier sites in the first half of 2024. This points to high input costs for the specialized, high-tolerance parts required for jet engines.

Labor costs for highly skilled engineers and technicians are rising due to competitive market conditions and new union agreements. GE Aerospace announced plans to hire around 5,000 U.S. workers in 2025, covering both manufacturing and engineering roles. Recent labor agreements reflect this pressure; for example, one deal ratified in July 2025 delivers a compounded 16.9% wage hike over four years for IUE-CWA represented workers, alongside cost-of-living adjustments.

Costs associated with managing a vast, global supply chain are substantial, encompassing logistics, inventory management, and supplier development. GE Aerospace's 2024 investment of over $650 million included spending on its supply chain. Furthermore, the company is investing in proprietary lean operating models, like FLIGHT DECK, to improve cycle times and manage these complex flows, which is an investment in process cost reduction rather than a direct cost itself, but reflects the scale of the management effort required.

The final major component is Capital expenditures for manufacturing capacity expansion. This is directly tied to meeting the strong demand backlog. GE Aerospace's nearly $1 billion investment planned for 2025 U.S. manufacturing is earmarked for facility upgrades, new inspection technology, and building expansions to increase production, such as for the CFM LEAP engine, where deliveries are expected to increase by 15-20% this year.

• GE Aerospace hired approximately 1,900 engineer and manufacturing employees in the year prior to 2025.
• The UAW contract for GE Aerospace included a 12% wage increase over three years and full coverage of healthcare premium increases.
• GE Aerospace's backlog was strong at more than $170 billion in 2024, driving the need for increased manufacturing cost absorption.

Finance: draft 13-week cash view by Friday.

General Electric Company (GE) - Canvas Business Model: Revenue Streams

You're looking at the financial engine of General Electric Company (GE) now that it's a focused aerospace pure-play. The revenue streams are heavily weighted toward the aftermarket, which provides that sticky, annuity-like income you want to see in a high-quality business.

The primary driver for revenue growth in 2025 is the Commercial Engines & Services (CES) segment. General Electric Company (GE) continues to project that CES revenue will grow in the mid-teens percentage range for the full year 2025. This growth is segmented, with services expected to grow in the low-double-digits to mid-teens, and equipment sales, which includes new engines, growing in the high-teens.

The annuity-like income from Long-Term Service Agreements (LTSA) is backed by a massive installed base. The commercial services backlog alone was reported to exceed $140 billion as of early 2025. This backlog underpins the recurring revenue component from spare parts and maintenance, repair, and overhaul (MRO) activities. For instance, in the second quarter of 2025, revenue from commercial engines and services hit $7.99 billion, marking a 30% year-over-year jump.

Sales of new commercial and military Original Equipment (OE) engines contribute significantly, especially given the high-teens equipment growth projection for CES. The company secured major new engine commitments, including its largest-ever widebody deal for over 400 engines with Qatar Airways. In the second quarter of 2025, the commercial business alone brought in $8 billion in revenue.

Defense and government contract revenue, including engine overhauls, provides a stable complement to the commercial cycle. The Defense & Propulsion Technologies (DPT) segment saw revenue of $2.6 billion in the second quarter of 2025. For the full year 2025, the operating profit expectation for this segment is between $1.1 billion and $1.3 billion.

The overall financial health and management confidence are reflected in the bottom-line guidance. For the full-year 2025, General Electric Company (GE) now expects total adjusted operating profit to be between $8.2 billion and $8.5 billion, an increase from earlier estimates.

Here's a breakdown of the key financial figures supporting these revenue streams as of late 2025 updates:

Revenue Stream Component	Latest Reported/Guided Metric	Value/Range
Full-Year 2025 Adjusted Operating Profit Guidance	Total Company Operating Profit	$8.2 billion to $8.5 billion
Commercial Engines & Services (CES) Revenue Growth	Full-Year 2025 Projection	Mid-teens percentage range
CES Services Revenue Growth	Full-Year 2025 Projection	Low-double-digits to mid-teens
CES Equipment Revenue Growth	Full-Year 2025 Projection	High-teens
Commercial Services Backlog	As of Q1 2025	Over $140 billion
Defense & Propulsion Technologies (DPT) Operating Profit	Full-Year 2025 Guidance	$1.1 billion to $1.3 billion
Total Revenue (TTM)	Ending Q3 2025	Approximately $43.95 billion

The annuity nature of the service contracts is key to understanding the stability of the revenue base. You can see this in the strong performance of the service component:

• Commercial Services saw 29% revenue growth in Q2 2025.
• Q2 2025 services revenue grew 17%.
• Spare parts revenue grew more than 20% in Q1 2025.
• Internal shop visit revenue increased 11% in Q1 2025.

The focus on operational excellence through the FLIGHT DECK strategy is intended to support these revenue streams by improving delivery and cost efficiency. Finance: draft the Q4 2025 revenue forecast sensitivity analysis by end of next week.