GENERAL ELECTRIC CO

COMMERCIAL ENGINES & SERVICES. 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. In the first six months of 2026, there was a strong demand for engines and services, while commercial air travel departures were roughly flat.

Demand continues to be strong and, in the first half of 2026, we announced significant new deals with several major customers. United Airlines and Delta Airlines selected our GENx engines to power their widebody Boeing 787 Dreamliner orders. American Airlines and Copa Airlines selected LEAP engines for their narrowbody orders. 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.

To meet the strong demand, we are investing in our manufacturing and overhaul facilities and continue to strengthen our external global MRO network to support LEAP aftermarket demand by adding Iberia as the seventh Premier MRO and expanding Delta TechOps capabilities for both LEAP 1-A and LEAP 1-B engines. We are also deploying engineering and supply chain resources to increase production, expand capacity and strengthen yield.

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.

Total engineering investments, both company and partner-funded, increased compared to prior year, and we continue to improve our products and advance our future of flight priorities. 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. And for future of flight - In the first half of 2026, together with the Civil Aviation Authority of Singapore and Airbus, we established the world’s first airport test bed for RISE technologies, focused on Open Fan. In addition, through the NASA Electrified Powertrain Flight Demonstration, we recently completed ground tests for the megawatt-class hybrid electric demonstrator.

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.

Revenue increased due to internal shop visit volume and workscopes, increased spare parts volume, increased install engine deliveries and pricing.

Profit increased primarily due to internal shop visit volume and workscopes, increased spare parts volume, and price. These increases were partially offset by the impact of higher install engine deliveries, higher growth investment and inflation.

For the six months ended June 30, 2026, revenue was up $4.3 billion, or 30%, and profit was up $0.9 billion, or 22%, compared to the six months ended June 30, 2025.

Revenue increased due to internal shop visit volume and workscopes, increased spare parts volume, increased install engine deliveries and pricing.

Profit increased primarily due to internal shop visit volume and workscopes, increased spare parts volume, price and a lower unfavorable change in estimated profitability on long-term service agreements, primarily driven by the absence of charges. In the first quarter of 2026, we recorded an unfavorable change in estimated profitability on long-term service agreements of less than $0.1 billion, including a $0.1 billion reversal of a majority of the tariff-related charge in the first quarter of 2025. These increases were partially offset by the impact of higher install engine deliveries and higher growth investment.

62026 2Q FORM 10-Q

As of June 30, 2026, RPO increased $15.4 billion, or 9%, from December 31, 2025, as a result of commercial actions and increases to existing long-term service agreements.

DEFENSE & PROPULSION TECHNOLOGIES. Our results in the second quarter of 2026 reflect domestic and international government defense departments’ focus on modernizing and scaling their forces while maintaining 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 War budget or equivalent international budgets. Defense & Systems engine deliveries showed progress in the first half of 2026, increasing 15%, supported by improved material supply.

In the first half of 2026, GE Aerospace was awarded a NAVAIR contract to supply T408-GE-400 engines for the U.S. Marine Corps' Sikorsky CH-53K King Stallion helicopter. We also announced a contract award from Turkish Aerospace Industries (TAI) to continue integrating the GE Aerospace F404 engine into Türkiye's jet trainer Hurjet.

(a) Includes Defense and Aeroderivative units.

For the three months ended June 30, 2026, revenue was up $0.5 billion, or 16%, and profit was up $0.1 billion, or 18%, compared to the three months ended June 30, 2025.

D&S and P&AT revenue increased primarily due to increased volume and price, including higher engine deliveries in D&S.

Profit increased primarily due to volume and price, partially offset by inflation, mix and incremental investments to support next-generation products.

For the six months ended June 30, 2026, revenue was up $1.0 billion, or 17%, and profit was up $0.1 billion, or 17%, compared to the six months ended June 30, 2025.

D&S and P&AT revenue increased primarily due to increased volume and price, including higher engine deliveries in D&S.

Profit increased primarily due to volume and price, partially offset by inflation, mix and incremental investments to support next-generation products.

As of June 30, 2026, RPO increased $4.8 billion, or 19%, from December 31, 2025, primarily due to increases in equipment from orders outpacing revenue recognized.