GENERAL ELECTRIC CO

FINANCIAL POLICY. GE Aerospace is committed to maintaining strong investment grade ratings with a disciplined capital allocation strategy. The Company will continue its commitment to investing and developing technologies that improve safety, durability, reliability and efficiency for our current engine products over their lifecycle and for the future of flight, and expanding our manufacturing and MRO capacity through research and development and capital expenditures. We intend to return a portion of our free cash flow* to shareholders through dividends and share repurchases. Merger and acquisition investments will be pursued in a disciplined way and focused on those that offer strategic, operational and financial synergies.

LIQUIDITY POLICY. We maintain a strong focus on liquidity and define our liquidity risk tolerance based on sources and uses to maintain a sufficient liquidity position to meet our business needs and financial obligations under both normal and stressed conditions. We believe that our consolidated liquidity and availability under our revolving credit facilities will be sufficient to meet our liquidity needs.

CONSOLIDATED LIQUIDITY. Our primary sources of liquidity consist of cash, cash equivalents, time deposits with maturities greater than three months, free cash flow* from our operating businesses, and access to capital markets. If needed, we can also draw from short-term borrowing facilities, including revolving credit facilities. Cash generation can be subject to variability based on many factors, including receipt of down payments on large equipment orders, timing of billings on long-term contracts, timing of customer allowances and market conditions. At September 30, 2026, our sources of liquidity of $10.3 billion included cash, cash equivalents and restricted cash of $8.8 billion and time deposits with maturities greater than three months classified as All other current assets of $1.5 billion. Of these amounts, $6.6 billion was held in the U.S. and $3.7 billion was held outside the U.S.

Cash held outside the U.S. has generally been reinvested in active foreign business operations; however, substantially all of our unrepatriated income has been subject to U.S. federal tax and, if there is a change in reinvestment, we would expect to be able to repatriate available cash (excluding amounts held in countries with currency controls) without significant tax cost.

Cash, cash equivalents and restricted cash at September 30, 2026 included $0.5 billion of cash held in countries with currency control restrictions, which may restrict the transfer of funds to the U.S. or limit our ability to transfer funds to the U.S. without incurring substantial costs. Excluded from cash, cash equivalents and restricted cash is $0.8 billion of cash in our run-off insurance operations, which is classified as All other assets in the Statement of Financial Position, and $0.7 billion of cash in our discontinued operations held by Bank BPH (see Note 2).

Under the current authorization, we repurchased 11.9 million shares for $4.0 billion in 2026, including repurchases of 5.9 million shares for $2.1 billion using accelerated share repurchases as a mechanism to achieve planned repurchase volumes within a quarter during closed windows.

During the third quarter of 2026, the Company announced that it signed an agreement to acquire CPP for $11.75 billion. We plan to fund the acquisition with approximately $7 billion in cash and the remainder in new debt. The transaction is expected to close in the second half of 2027 and will be subject to regulatory approvals and other customary closing conditions.

BORROWINGS. Consolidated total borrowings were $19.3 billion and $20.5 billion at September 30, 2026 and December 31, 2025, respectively. The decrease of $1.2 billion is primarily due to maturities and changes in foreign currency exchange rates, partially offset by $0.5 billion issued under the Company's new commercial paper program. We started the new commercial paper program in lieu of issuing long term debt to help diversify our funding sources. The Company also holds a five-year unsecured revolving credit facility, maturing in 2029, in an aggregate committed amount of $3.0 billion, with zero outstanding at September 30, 2026.

2026 3Q FORM 10-Q 9

CREDIT RATINGS AND CONDITIONS. We have relied, and may continue to rely, on the short- and long-term debt capital markets to fund, among other things, a significant portion of our operations. The cost and availability of debt financing is influenced by our credit ratings. Moody’s Investors Service (Moody’s) and Standard and Poor’s Global Ratings (S&P) currently issue ratings on our short- and long-term debt. On February 2, 2026, Moody's upgraded our long-term rating from A3 to A2, our short-term rating from P-2 to P-1 and maintained our positive outlook. On April 16, 2026, S&P revised our outlook from stable to positive, and affirmed our short-term rating of A-2 and our long-term rating of A-. Our credit ratings as of the date of this filing are set forth in the table below.

Our ratings may be subject to a revision or withdrawal at any time by the assigning rating organization, and each rating should be evaluated independently of any other rating.

Our unused back-up revolving syndicated credit facility contains a customary net debt-to-EBITDA financial covenant, which we satisfied at September 30, 2026.

FOREIGN EXCHANGE RISK. As a result of our global operations, we generate and incur a small portion of our revenue and expenses in currencies other than the U.S. dollar. Such principal currencies include the euro, the British sterling pound and Brazilian real. The effect of foreign currency fluctuations on income was insignificant. See Note 20 for further information about our risk exposures, our use of derivatives, and the effects of this activity on our financial statements.

STATEMENT OF CASH FLOWS

CASH FLOWS FROM CONTINUING OPERATIONS. The most significant source of cash flows from operating activities (CFOA) is customer-related activities, the largest of which is collecting cash resulting from product or services sales. The most significant operating use of cash is to pay our suppliers, employees, tax authorities and postretirement plans.

Cash from operating activities was $7.3 billion for the nine months ended September 30, 2026, an increase of $0.9 billion compared to 2025, primarily due to: an increase in net income (after adjusting for depreciation of property, plant, and equipment, and amortization of intangible assets) driven by all segments, an increase in sales discounts and allowances, partially offset by higher working capital growth.

Cash from sales discounts and allowances was $1.6 billion for the nine months ended September 30, 2026, an increase of $1.0 billion compared to 2025, primarily due to increases in allowances on new engine installs and spare parts in CES.

The cash impact from changes in working capital was $(1.8) billion for the nine months ended September 30, 2026, an increase in cash used of $(0.9) billion compared to 2025, due to: current receivables of $(1.1) billion, driven by higher volume, partially offset by higher collections primarily in CES; current contract assets, contract liabilities and current deferred income of $(0.5) billion, driven by higher revenue recognition and a lower unfavorable change in estimated profitability on long-term service agreements, primarily driven by the absence of charges, including a $0.1 billion reversal of a majority of the tariff-related charge from the first quarter of 2025, partially offset by higher billings; and accounts payable of $(0.6) billion, driven by higher disbursements partially offset by higher volume. These increases were partially offset by inventories, including deferred inventory, of $0.8 billion, driven by higher output and lower tariffs, partially offset by higher material input; and progress collections of $0.4 billion, driven by higher collections primarily in CES.

The components of All other operating activities included:

Cash used for investing activities was $(2.9) billion for the nine months ended September 30, 2026, an increase of $1.6 billion compared to 2025, primarily due to purchases of time deposits with maturities greater than three months of $1.5 billion (a component of all other investing activities). Cash used for additions to property, plant and equipment and internal-use software net of dispositions (components of free cash flow*) was $0.8 billion and $0.8 billion for the nine months ended September 30, 2026 and 2025, respectively.

Cash used for financing activities was $(8.5) billion for the nine months ended September 30, 2026, an increase of $2.6 billion compared to 2025, primarily due to: lower long-term debt issuance of $2.0 billion, higher treasury share repurchases of $1.0 billion and higher dividends paid to shareholders of $0.3 billion, partially offset by commercial paper issuance of $0.5 billion in 2026.

102026 3Q FORM 10-Q