GENERAL ELECTRIC CO

COMMERCIAL ENGINES & SERVICES. Our results in the third quarter of 2024 reflect robust demand for commercial air travel with departures up high-single digits year-to-date. We are in frequent communication with our airline, airframe, and maintenance, repair and overhaul (MRO) customers about the outlook for commercial air travel, new aircraft production, fleet retirements and after-market services, including shop visit and spare parts demand.

Internal shop visit output was relatively flat in the third quarter compared to the third quarter of 2023, while total engine deliveries decreased primarily due to supply chain constraints. We are investing in our manufacturing and overhaul facilities and are deploying engineering and supply chain resources to increase production, expand capacity and strengthen yield.

Total engineering investments, both company and partner-funded, increased compared to prior year. We remain committed to investing in developing and maturing technologies that enable a more sustainable future of flight. Notably, CFM International's Revolutionary Innovation for Sustainable Engines (RISE) program is a suite of pioneering technologies including Open Fan, compact core and hybrid electric systems for compatibility with alternative fuels. We recently shared that we are beginning to plan for dust ingestion tests on the Open Fan design. This is one of several initiatives underway to help invent the future of flight.

RPO as of September 30, 2024 increased $11.0 billion, or 8%, from December 31, 2023, primarily as a result of engines contracted under long-term service agreements that have now been put into service and from equipment orders outpacing revenues recognized.

For the three months ended September 30, 2024, segment revenues were up $0.5 billion, or 8%, and segment profit was up $0.3 billion, or 16%, compared to the three months ended September 30, 2023.

Revenues increased primarily due to higher spare parts volume, increased internal shop visit workscopes, improved pricing and favorable customer mix. These increases were partially offset by lower deliveries of new engines due to supply chain constraints.

Profit increased primarily due to increased spare parts volume, improved pricing and favorable services mix. These increases were partially offset by inflation and higher growth investment.

For the nine months ended September 30, 2024, segment revenues were up $1.8 billion, or 10%, and segment profit was up $0.7 billion, or 18%, compared to the nine months ended September 30, 2023.

Revenues increased primarily due to higher services volume across internal shop visits and spare parts and improved pricing. These increases were partially offset by lower deliveries of new engines due to supply chain constraints and an unfavorable change in estimated profitability of our long-term service agreements of $0.1 billion.

Profit increased primarily due to increased spare parts volume, improved pricing and favorable services mix. These increases were partially offset by inflation, higher growth investment, lower spare engine deliveries and an unfavorable change in estimated profitability of our long-term service agreements of $0.1 billion.

2024 3Q FORM 10-Q 6

DEFENSE & PROPULSION TECHNOLOGIES. Our results in the third quarter of 2024 reflect domestic and international government defense departments’ focus on modernizing and scaling their forces while continuing flight operations, driving services demand. A key underlying driver of our business is government funding, as most of the revenue in Defense & Systems is derived from funding that flows through the U.S. Department of Defense (DoD) budget, or equivalent international budgets. National defense budgets are expected to grow in the U.S. in the low-single digits and internationally in the mid-single digits. In March 2024, Congress passed its defense funding bill for fiscal year 2024, which includes funding that supports our advanced engine development research, classified programs and product procurement and maintenance in other engine lines.

Additionally, the DoD is focused on advanced combat, enhancing platform capability and groundbreaking technology primarily in classified programs, including support for the next generation T901 turboshaft engine and advanced engine architectures. In June 2024, GE Aerospace delivered two T901-GE-900 engines to Sikorsky for integration and testing aboard a UH-60 Black Hawk as part of the U.S. Army upgrade program. In addition, GE Aerospace was awarded a $1.1 billion contract to provide T700 series turbine engines to the U.S. Army through the first half of 2029.

RPO as of September 30, 2024 increased $1.1 billion, or 7%, from December 31, 2023, primarily due to increases in equipment from Defense & Systems orders outpacing revenues recognized. Equipment growth was primarily driven by engine and flight management system orders.

For the three months ended September 30, 2024, segment revenues were up 2% and segment profit was down 18% compared to the three months ended September 30, 2023.

Revenues increased in P&AT primarily from higher output at Avio Aero and improved pricing. The increase in P&AT was partially offset by a decrease in D&S revenues where improved pricing was more than offset by unfavorable engine mix and lower engine deliveries due to supply chain constraints.

Profit decreased primarily due to inflation in our supply chain, engine mix and incremental investments to support next generation products.

For the nine months ended September 30, 2024, segment revenues were up $0.4 billion or 6% and segment profit was up $0.1 billion or 22% compared to the nine months ended September 30, 2023.

Revenues increased in both D&S and P&AT. D&S revenues increased primarily due to services growth, improved pricing and an increase in development program revenues. This increase was partially offset by lower engine deliveries. P&AT revenues increased, primarily due to higher output at Avio Aero and improved pricing.

Profit increased primarily due to services growth, improved pricing, more favorable equipment and services mix and prior year impacts from program costs. This increase was partially offset by incremental investments to support next generation products and lower deliveries of new engines.