GE Aerospace to invest $16M in Durham despite tariff impacts
Story Highlights GE Aerospace plans $1 billion investment despite tariff impacts.
Durham facility to receive $16 million for increased engine production.
GE Aerospace employs 2,000 people across North Carolina.
Despite significant impacts expected from tariffs, GE Aerospace still plans to invest $1 billion into its manufacturing operation, including in Durham.
Tucked away near Research Triangle Park, GE Aerospace operates an airline engine manufacturing facility with 400 employees. It's one of just three GE Aerospace commercial engine assembly lines in the United States. And of that $1 billion planned investment, $16 million has been earmarked for the Durham site.
Tariffs, however, are taking a toll on the bottom line.
On an earnings call this week, H. Lawrence Culp, CEO of GE Aerospace, reiterated the company's commitment to investing in manufacturing. But he also told analysts tariff policy would 'result in additional costs for us and our supply chain.'
The company, based in Cincinnati, will seek to save $500 million this year by cutting costs and raising prices. But GE Aerospace does not plan to pull back in Durham. Kristen Neubauer, Durham plant leader said in an email that, 'as demand grows, we'll continue to build capacity into our shop to meet that ramp for our customers.'
The firm doesn't provide site specific numbers, but said it delivered a total of 1,900 engines last year. In Durham, that includes engine models for regional aircraft (CF34), narrow body aircraft (CFM56, LEAP) and wide body aircraft (CF8, GE90, GE9X, GEnx).
The company recently confirmed plans to make major investments at the site, including new assembly systems that will increase capacity.
Neubauer said the focus is on creating 'world class processes' to be ready to ramp up the LEAP engine and wide body 9X engine. The LEAP will power planes such as the Boeing 737 Max and the Airbus A320neo. The GE9X will power massive Boeing 777Xs.
'We have done a lot of work focused on improving safety, quality and delivery,' Neubauer said.
GE Aerospace has 2,000 employees across the state. GE Aerospace's investment in Durham is part of a $100 million commitment across the company's entire North Carolina operation that also includes $13 million at its West Jefferson site and $20 million at a facility in Asheville that produces engine parts. The company also has operations in Wilmington.
GE Aerospace is a collaborator in Honda Aero, which has a facility in Burlington that makes the engine for the HondaJet manufactured by Honda Aircraft Co. in Greensboro.
North Carolina is getting a lot of attention in the aerospace sector, including from JetZero, a next-generation jet maker considering the Greensboro area for a 10,000-job manufacturing plant.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
6 hours ago
- Yahoo
SkyWest, Inc. (SKYW) Finalizes New Engine Deal, Reducing Carbon Footprint
With a low P/E multiple and potential upside for investors, SkyWest, Inc. (NASDAQ:SKYW) is among the . On July 9, 2025, SkyWest, Inc. (NASDAQ:SKYW) penned a deal with GE Aerospace for CF34-8E engines, including spares, complementing its order of 60 new Embraer 175 regional jets in June 2025. The deal highlights the long-standing partnership of the two parties, with CF34 engines powering the airline's fleet of 600 aircraft since 1994. Currently, SkyWest, Inc. (NASDAQ:SKYW) is the largest beneficiary of CF34 engines globally, with more than 1,200 in service. Meanwhile, GE Aerospace is known for the durability and high dispatch reliability rate of CF34 engines, 11,000 of which it has delivered globally. These engines possess the capability to operate on approved sustainable aviation fuel (SAF) blends, helping SkyWest, Inc. (NASDAQ:SKYW) reduce its carbon footprint. SkyWest, Inc. (NASDAQ:SKYW) is a regional airline in the U.S., operating through SkyWest Airlines and SWC, and SkyWest Leasing. It is on the list of cheap transportation stocks. While we acknowledge the potential of SKYW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 7 Best Stocks to Invest in for a Quick Return and 10 Best Cheap Stocks to Buy According to Billionaire Ray Dalio. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
8 hours ago
- Yahoo
Tourism, Military UAVs, and Government Support Amid Supply Chain and Labor Challenges Fueling Growth
The global aircraft engines market, valued at $52.81 billion in 2024, is projected to reach $75.93 billion by 2034. Key growth drivers include rising air travel and military spending, with turbofan and electric/hybrid segments leading. North America dominates the market; Middle East and Africa forecast rapid growth. Major players include GE Aerospace and Raytheon. Key trends focus on innovative motors, turbofan technology, and domestic engine development. Aircraft Engines Market Dublin, July 21, 2025 (GLOBE NEWSWIRE) -- The "Aircraft Engines Market Opportunities and Strategies to 2034" report has been added to report describes and explains the aircraft engines market and covers 2019-2024, termed the historic period, and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region. The global aircraft engines market reached a value of nearly $52.81 billion in 2024, having grown at a compound annual growth rate (CAGR) of 1.19% since 2019. The market is expected to grow from $52.81 billion in 2024 to $63.17 billion in 2029 at a rate of 3.65%. The market is then expected to grow at a CAGR of 3.75% from 2029 and reach $75.93 billion in in the historic period resulted from increase in demand for air travel, increase in military and defense spending, expansion of aircraft fleets and rising maintenance, repair and overhaul (MRO) services. Factors that negatively affected growth in the historic period were contamination issues and increasing raw material costs. Going forward, rising international tourism, increase in military drone and UAV operations, government support for aircrafts and strict emission regulations will drive the growth. Factor that could hinder the growth of the aircraft engines market in the future include supply chain disruptions and lack of skilled America was the largest region in the aircraft engines market, accounting for 61.44% or $32.45 billion of the total in 2024. It was followed by Asia-Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the aircraft engines market will be Middle East and Africa where growth will be at CAGRs of 9.17% and 8.80% respectively. These will be followed by South America and Western Europe where the markets are expected to grow at CAGRs of 5.78% and 4.42% global aircraft engines market is highly concentrated, with large players operating in the market. The top ten competitors in the market made up to 71.81% of the total market in 2023. GE Aerospace was the largest competitor with a 27.73% share of the market, followed by Raytheon Technologies Inc. with 15.47%, Rolls-Royce Holdings plc with 9.70%, Honeywell International Inc. with 5.76%, Ishikawajima-Harima Heavy Industries (IHI Corporation). with 3.24%, Safran S.A. with 3.00%, MTU Aero Engines AG with 2.87%, Mitsubishi Heavy Industries Ltd. with 2.04%, Williams International Co. LLC with 1.30% and Magellan Aerospace Corporation with 0.69%.The aircraft engines market is segmented by type into turboprop, turboshaft, turbofan and piston engines. The turbofan market was the largest segment of the aircraft engines market segmented by type, accounting for 61.83% or $32.65 billion of the total in 2024. Going forward, the turbofan segment is expected to be the fastest growing segment in the aircraft engines market segmented by type, at a CAGR of 4.18% during aircraft engines market is segmented by application into commercial aviation, military aviation, business and general aviation aircraft. The commercial aviation market was the largest segment of the aircraft engines market segmented by application, accounting for 64.21% or $33.91 billion of the total in 2024. Going forward, the commercial aviation segment is expected to be the fastest growing segment in the aircraft engines market segmented by application, at a CAGR of 3.86% during aircraft engines market is segmented by technology into conventional engines and electric/hybrid engines. The conventional engines market was the largest segment of the aircraft engines market segmented by technology, accounting for 62.47% or $32.99 billion of the total in 2024. Going forward, the electric/hybrid engines segment is expected to be the fastest growing segment in the aircraft engines market segmented by technology, at a CAGR of 6.53% during aircraft engines market is segmented by platform into fixed-wing and rotary-wing aircraft. The fixed-wing market was the largest segment of the aircraft engines market segmented by platform, accounting for 82.03% or $43.32 billion of the total in 2024. Going forward, the rotary-wing segment is expected to be the fastest growing segment in the aircraft engines market segmented by platform, at a CAGR of 3.81% during top opportunities in the aircraft engines market segmented by type will arise in the turbofan segment, which will gain $7.41 billion of global annual sales by 2029. The top opportunities in the aircraft engines market segmented by technology will arise in the electric/hybrid segment, which will gain $7.37 billion of global annual sales by 2029. The top opportunities in the aircraft engines market segmented by platform will arise in the fixed wing segment, which will gain $8.41 billion of global annual sales by 2029. The top opportunities in the aircraft engines market segmented by application will arise in the commercial aviation segment, which will gain $7.06 billion of global annual sales by 2029. The aircraft engines market size will gain the most in the USA at $5.35 strategies for the aircraft engines market include focusing on electrifying the aircraft by manufacturing innovative motors, such as electric motors, developing solutions to get self-sufficiency engine, focused on domestic engines development to enhance self-reliance, focused on developing innovations in aircraft turbofan engine and focused on advancement in turbofan engine technology. Player-adopted strategies in the aircraft engines market include focus on enhancing business capabilities through the launch of new products and focus on enhancing business operations through strategic take advantage of the opportunities, the analyst recommends the aircraft engines market companies to focus on electrification to meet sustainability demands and expand market share, focus on advancing indigenous engine technologies to strengthen strategic positioning, focus on domestic engine development to build technological independence and expand capabilities, focus on advancing turbofan engine efficiency and sustainability, focus on improving specific fuel consumption and emissions performance, focus on turbofan market growth, focus on electric/hybrid engine market growth, focus on rotary wing engine market growth, expand in emerging markets, focus on expanding distribution channels for aircraft engine solutions, focus on strategic pricing for aircraft engine companies, optimize digital marketing channels, strengthen industry partnerships and thought leadership, focus on commercial aviation engine market Market Trends Focus on Manufacturing Innovative Motors Paving the Way for Sustainable Air Mobility Focus on Role of Military Turbofan Engines in Modern Aviation Fostering Aerospace Innovation Through Domestic Engine Development Innovations in Turbofan Engine Technology With Advance Development Advancements in Turbofan Engine Technology Key Mergers and Acquisitions FTAI Aviation Ltd Acquired Lockheed Martin Commercial Engine Solutions Hartzell Engine Tech Acquired Kelly Aero LLC Markets Covered: Type: Turboprop; Turboshaft; Turbofan; Piston Engine Technology: Conventional Engine; Electric/Hybrid Platform: Fixed-Wing; Rotary-Wing Application: Commercial Aviation; Military Aviation; Business and General Aviation Aircraft Key Attributes: Report Attribute Details No. of Pages 329 Forecast Period 2024 - 2034 Estimated Market Value (USD) in 2024 $52.81 Billion Forecasted Market Value (USD) by 2034 $75.93 Billion Compound Annual Growth Rate 3.7% Regions Covered Global Companies Featured GE Aerospace Raytheon Technologies Inc Rolls-Royce Holdings plc Honeywell International Inc Ishikawajima-Harima Heavy Industries (IHI Corporation) Safran S.A. MTU Aero Engines AG Mitsubishi Heavy Industries Ltd. Williams International Co. LLC Magellan Aerospace Corporation Hyprix AECC Sichuan Gas Turbine Establishment Hanwha Aerospace Korea Aerospace Industries (KAI) Korean Air Lines Co., Ltd. Kawasaki Heavy Industries Japanese Aero Engines Corporation (JAEC) Marubeni Aerospace Corporation Sojitz Aerospace Corporation Raghu Vamsi Machine Tools Pvt Ltd Pratt & Whitney Hindustan Aeronautics Limited (HAL) CFM International Greater China Piaggio Aerospace Leonardo S.p.A EuroJet Turbo GmbH Liebherr-Aerospace LOM Praha Walter Engines United Engine Corporation (UEC) Motor Sich Zorya-Mashproekt Wright and Engine Company Hartzell Engine Tech StandardAero FTAI Aviation Ltd. Aero Turbine Inc. Lockheed Martin Commercial Engine Solutions Component Repair Technologies SKY Airline Turbomachine Embraer Riyadh Air Sanad Tusas Engine Industries, Inc. For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Aircraft Engines Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900
Yahoo
3 days ago
- Yahoo
GE Aerospace (GE) Q2 2025 Earnings Call Highlights: Soaring Revenue and Raised Guidance Amid ...
Revenue: Over $10 billion, up 23% year-over-year. Commercial Engines & Services (CES) Revenue: Up 30% year-over-year. Defense & Propulsion Technologies (DPT) Revenue: Up 7% year-over-year. Profit: $2.3 billion, up 23% year-over-year. Margins: Reached 23%. Earnings Per Share (EPS): $1.66, up 38% year-over-year. Free Cash Flow: $2.1 billion, nearly doubling from the previous year. Orders: Up 27% year-over-year. CES Service Revenue: Up 29% year-over-year. CES Equipment Revenue: Up 35% year-over-year. DPT Profit: Approximately $360 million, up 5% year-over-year. 2025 Revenue Growth Guidance: Mid-teens, up from low double digits. 2025 Operating Profit Guidance: $8.2 billion to $8.5 billion. 2025 Free Cash Flow Guidance: $6.5 billion to $6.9 billion. 2028 Profit Outlook: $11.5 billion. 2028 Free Cash Flow Outlook: Approximately $8.5 billion. Warning! GuruFocus has detected 7 Warning Sign with GE. Release Date: July 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points GE Aerospace (NYSE:GE) reported a strong second quarter with a 23% increase in revenue, driven by a 30% growth in Commercial Engines & Services (CES) and a 7% increase in Defense & Propulsion Technologies (DPT). The company raised its 2025 guidance, expecting mid-teens revenue growth, driven by improved services outlook and material availability. GE Aerospace (NYSE:GE) has a robust backlog of over $175 billion, with commercial services backlog exceeding $140 billion, supporting long-term growth. The company is making significant advancements in technology, including AI-enabled tools for engine inspections and the development of the CFM RISE program, which promises a 20% reduction in fuel burn. GE Aerospace (NYSE:GE) is expanding its capacity, with plans to grow internal and external capacity by approximately 40% by the end of the decade, supported by a $1 billion investment in MRO and component repair facilities. Negative Points The company faces ongoing supply chain challenges, with material delivery environments expected to remain tight, contributing to higher inflationary pressures. GE Aerospace (NYSE:GE) anticipates a couple of hundred million dollars of profit headwind in 2025 due to initial shipments of the GE9X engine, which have the highest losses. There is uncertainty in the macroeconomic environment, which could impact the company's expectations for spare part sales in the second half of the year. The company expects retirements of CFM56 engines to increase, which could affect shop visit volumes and revenue. Despite improvements, the company acknowledges that it still has more work to do to improve turnaround times for certain engine platforms. Q & A Highlights Q: Rahul, the high end of the 2025 guide implies second-half EBIT nearly $500 million lower than the first half. Can you reconcile that second-half EBIT decline for us? A: Rahul Ghai, CFO: We're having a good year, raising revenue growth expectations from low double digits to mid-teens. The $350 million profit increase is split between overperformance in the second quarter and raised expectations for the second half. We expected a strong start to the year and aimed for a more linear year than 2024, considering the OE ramp and GE9X shipments. Corporate expenses and R&D typically step up in the second half. Despite these factors, we expect strong year-over-year profit growth in the second half. Q: Can you discuss the pricing assumption through 2028 and the expected retirement step-up for CFM56 engines? A: H. Lawrence Culp, CEO: We aim for pricing to more than offset inflation in 2025, with CES services up at a mid-single-digit level. As we move past launch, we anticipate better pricing dynamics. Regarding retirements, Rahul Ghai, CFO, noted that retirements have been low but are expected to pick up as the fleet ages. The assumption is based on new aircraft deliveries and departure growth, leading to a 3% to 4% retirement rate. Q: Can you elaborate on LEAP aftermarket profitability and its progression to 2030? A: Rahul Ghai, CFO: LEAP is progressing well, with financial and operational milestones on track. Key drivers of LEAP service profitability include leveraging fixed investments in MRO shops, pricing discipline, growing aftermarket channels, and repair technology. We expect LEAP service margins to approach overall service margins by 2030. Q: How do you get comfortable projecting LEAP service profitability to be comparable to overall service profitability? A: Rahul Ghai, CFO: Improvement in LEAP durability is key. LEAP-1A durability is now at CFM56 levels. We have experience with long-term service agreements, and profitability on GE90 and GEnx programs is above overall service profitability. With improved durability, we feel confident in achieving comparable margins. Q: What makes you confident about the RISE program and Open Fan technology? A: H. Lawrence Culp, CEO: We have over 350 program tests focused on propulsive efficiency and durability. The pivot to relying more on propulsive than thermal efficiency is supported by industry feedback. We're making investments in technology components to deliver on the next-generation narrowbody propulsion platform. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
