2026-06-18Michael Mauboussin (Consilient Observer)NeutralOpportunities and Expectations: The Present Value of Growth Opportunities in ValuationDetail →
2026-03-31The Capital Cycle (Marathon)NeutralMasters of the Air (March 2026)Detail →
2025-12-31Southeastern Asset ManagementNeutral4Q25 Partners Fund CommentaryDetail →
2025-12-31Southeastern Asset ManagementNeutral4Q25 Global Fund CommentaryDetail →
2025-11-14Colossus (Invest Like the Best / Business Breakdowns)BullGE Aerospace: Full Throttle - [Business Breakdowns, EP.235]Detail →
2025-07-02Colossus (Invest Like the Best / Business Breakdowns)BullAlpha In Podcasts? - [Business Breakdowns, EP.222]Detail →
2024-07-17Colossus (Invest Like the Best / Business Breakdowns)NeutralRolls-Royce: Turbines and Tribulations - [Business Breakdowns, EP.174]Detail →
2024-06-11Colossus (Invest Like the Best / Business Breakdowns)NeutralFrank Blake - Leading By Example - [Invest Like the Best, EP.377]Detail →
Earnings Callsⓘ
Q2 2026July 23, 2026
›
### At a Glance This quarter’s results beat expectations, primarily driven by sustained strong demand for commercial services, coupled with FLIGHT DECK operational improvements that significantly boosted delivery volumes.
### Key Data Revenue grew 24%, with Commercial Engine Services (CES) up 27%; earnings per share rose 22% to $2.02; free cash flow increased 43% to $3B.
### Business Progress Commercial services revenue grew 26%, LEAP engine internal shop visits increased over 50%, and spare parts sales rose more than 25%. FLIGHT DECK improved efficiency by reducing key component production cycle times by 60% and shortening CFM56 final assembly time by 50%. A Kaizen improvement initiative with GKN cut inspection time by 90%. The LEAP-1B durability kit received certification, expected to double time on wing. In defense, the X102 adaptive cycle engine entered the assembly phase, and milestones were achieved in the CCA market product.
### Guidance and Outlook Management raised all 2026 guidance: revenue growth expectations increased from low double digits to high teens, CES growth from around 15% to approximately 20%, EPS guidance raised to $7.65–$7.85, and free cash flow guidance raised to $8.9B–$9.2B.
### Risk/Highlight Signals Positive signals: Management emphasized that demand resilience exceeded expectations, customer behavior remained unchanged, and expressed strong confidence in double-digit service growth for 2027. Negative signals: Spare parts backlog grew 20% quarter-over-quarter, and supply chain remains a growth bottleneck.