At our manufacturing site in Terre Haute, Indiana, there

is a tape dispenser nicknamed “The Gerald,” and it is

changing everything.

Terre Haute is home to more than 300 GE Aerospace

employees who specialize in the production of combustors

and structures for both commercial and military aircraft

engines. In 2023, the turbine center frame (TCF) line, a

critical component for the CFM1 LEAP engine that powers

the Airbus A320neo and Boeing 737 MAX aircraft, had an

on-time delivery rate of 20%, far from the goal of 100%.

Something had to change. The team identified a need for

an electronic tape dispenser to replace a time-consuming

manual step in the process that required cutting individual

pieces of tape with a utility knife to label the build and

protect holes on the turbine center frame from

foreign objects.

The new automated tape dispenser was expensive, causing

Gerald Beuvelet, the plant leader, to ask the team to provide

extensive justification for the request. That’s how it had

always been done. The team was disheartened. The long

bureaucratic approval process would kill the positive

momentum that had been building on the line. Looking

at the team’s slumped shoulders as they left the room,

Gerald realized he had it wrong. He wasn’t listening to

the people who knew what was needed to drive immediate

improvement. He purchased the tape dispenser on the

spot, no more questions asked.

One tape dispenser did not solve all the challenges at

the site, but it did begin to change the culture.

The team on the shop floor felt empowered by the trust

shown to them and started actioning more and more

improvements. Today, on-time delivery of the TCF line is

96%, supporting the overall 28% increase in LEAP output

in 2025. Now, “The Gerald” — proudly named after their

beloved plant leader — stands for something bigger

than just the tape it dispenses; it stands for a shared

commitment to being better by listening to those closest

to the work.

Starting our annual shareholders letter with a story of a tape

dispenser is unconventional, but it perfectly represents the

culture we are forging at GE Aerospace. One rooted in the

behaviors of Respect for People, Customer Driven, and

Continuous Improvement and guided by FLIGHT DECK,

our proprietary lean operating model, to deliver

for customers.

While 2024 was marked by big moments and bright

spotlights as GE Aerospace launched as an independent

public company, 2025 was defined by countless small,

impactful moments that together were just as significant.

It is the compounding effect of these seemingly minor,

incremental changes where FLIGHT DECK is making a

meaningful difference.

With nearly one million people in the air right now with

GE Aerospace and our partners’ technology underwing,

every detail matters. Our 57,000 employees come to work

every day to invent the future of flight, lift people up, and

bring them home safely. The weight of that responsibility

drives a relentless focus on safety, quality, delivery, and

cost (SQDC), always in that order.

Dear Fellow Shareholder,

Safety First, Always

In 2025, the aviation industry was struck by tragedies.

The heartbreak from American Airlines Flight 5342, United

States Army Black Hawk PAT25, Air India Flight 171, and UPS

Flight 2976 was felt deeply across our industry. In addition

to supporting our customers through these dark moments,

we at GE Aerospace also lost one of our own. Vikesh Patel,

a dedicated and influential leader, was returning home from

a work trip on Flight AA5342. As we continue to grieve

his loss, we are reminded every day of our purpose

statement and shared responsibility.

Safety is always our top priority. We never compete

on safety, because nothing matters more.

Respect for People

In 2025, the aerospace supply chain continued to face two

competing challenges: recovering from a constrained and

fractured post-pandemic environment while simultaneously

ramping to meet one of the greatest periods of demand the

industry has experienced. Our supply chain is complex and

deeply interconnected, with more than 500 direct suppliers

supporting our ability to deliver for customers. From material

availability to labor shortages and geopolitical dynamics,

obstacles to achieving our production commitments

continued to persist — making this the perfect time for

problem solving, not finger pointing.

Our work began with a candid acknowledgment of our

shortcomings and an understanding that we must become

better partners not only to our suppliers externally, but to our

teams internally as well. In January, we combined our safety,

quality, engineering, manufacturing, and sourcing teams into

a single, cohesive organization. This unified team is fostering

stronger problem solving and alignment across the value

chain internally, thereby enabling more effective

communication with our external supply base. In 2026, we

are committed to building off of this progress as we expand

this team to manage the entire commercial engine lifecycle.

As one team, we have changed how we deliver demand

signals to our suppliers, providing them with more stable

short-term forecasting in addition to greater visibility into

long-term demand. Now we are able to partner more closely

to deploy FLIGHT DECK and GE Aerospace engineering

resources into our supply base. With shared humility and

determination to resolve challenges, together we are

strengthening systems and processes to work better

for everyone.

Take for example our supplier partner Steel Tool and

Engineering, which specializes in the brazed honeycomb

assembly surrounding CFM’s LEAP engine turbine blades.

The Steel Tool team had a process in place that was

averaging an output of 47 pieces

per week, yet customer demand was

much higher. To help close the gap,

40 GE Aerospace and Steel Tool

employees leveraged FLIGHT DECK

to come together for a kaizen event

to analyze the production system,

improve processes, and unlock

capacity. Through value stream

mapping, the team was able to

pinpoint four key areas of constraint

and put changes in place that

increased the average output to more

than 470 pieces per week since the

kaizen event, a tenfold increase.

This is demonstrating Respect for

People — empowering our teams on

the ground with trust to do what is

needed to make a process better for

everyone involved.

By leading with Respect for People and

deploying FLIGHT DECK across the

supply base, we are driving sustained

impact. In 2025, material input from our

priority suppliers grew 40% year-over-

year, with seven consecutive quarters

of sequential improvement. As material

availability improved, total engine

deliveries were up 26% year-over-year.

Commercial Engines & Services (CES)

deliveries grew 25%, including record

LEAP deliveries up 28%, and Defense

deliveries growing 30% for the year.

Customer Driven

At our Maintenance, Repair, and Overhaul (MRO) site in Celma, Brazil, roughly

30 airline customers depend on our teams to service four different engine lines:

CFM56, LEAP, GEnx, and CF6. Celma is responsible for approximately 25% of total

internal shop visits for GE Aerospace, with LEAP engines accounting for roughly

21% of the site’s volume in 2025. While we expect LEAP shop visits to continue

growing, the team has faced persistent turnaround time delays, extending the

time it takes to get our customers’ fleets back in the air. Committed to relieving

this bottleneck, the team has advanced its FLIGHT DECK transformation journey

over the past year to pinpoint constraints, establish standard work to improve

consistency, and implement daily and visual management to rapidly identify and

resolve abnormalities. As a result, the team has achieved a 23% reduction in LEAP

test cycle time since August 2024, improving every day so that customers can

receive their engines faster.

This is being Customer Driven.

It starts with measuring our performance through the eyes of our customers —

seeing ourselves as they do, not as we hope they would. While our team delivered

outstanding financial results in 2025, we are not satisfied, because our customers

are not satisfied. From delivery to durability, we have more work to do to meet our

customers’ expectations. We are committed to predictability, improved time-on-

wing, and lower cost of ownership.

For instance, we are advancing our LEAP durability roadmap to enhance the

engine’s performance, especially in hot and harsh environments. By the end of

2025, the reverse bleed system (RBS), which helps to extend the life of the

engine’s fuel nozzles, has been installed in 50% of LEAP-1A engines in service,

and nearly 1,500 LEAP-1A durability kits have been shipped to customers across

new engine production and global overhaul shops since certification. These

upgrades will help to deliver meaningful improvements in the field, increasing

time-on-wing by more than twofold, matching our industry-leading CFM56

performance and we expect certification for the LEAP-1B durability kit in the

first half of 2026.

To improve predictability and cost of ownership, we are

leveraging artificial intelligence (AI) to enhance our

aftermarket capabilities and accelerate turnaround times.

Well before engines arrive in our shops, we’re using AI to

not only reduce the maintenance burden of inspections

but also improve inspection accuracy. Developed at the

GE Aerospace Research Center, our AI-enabled Blade

Inspection Tool is facilitating the inspection of critical

stage 1 blades to be done in half the time. With the

knowledge we gain through inspections, we’ve also

developed an AI-based material assistant that can

predict the shop visit workscope for individual LEAP

engines nine months in advance, driving more accurate

material forecasting before shop visits to enable earlier

part orders. We deployed this model to our Celma and

Malaysia MRO facilities in 2025 and are already seeing

more than five-day reductions in turnaround time.

As we look to 2026, we know the expanded use of AI will

be an accelerator for FLIGHT DECK, reducing waste and

providing more time for our teams to focus on the most

value-added work for our customers. With the data and

analysis AI can provide in minutes, if not seconds, we can

take our FLIGHT DECK journey to an even higher level.

We are relentlessly pursuing technology innovations like

these to better serve our customers and deliver on what

they value.

Continuous Improvement

Our facility in Lynn, Massachusetts designs, produces,

assembles, and tests military and commercial aircraft engines

— including the F404. Leveraging FLIGHT DECK, the team

pinpointed key areas that were creating bottlenecks on the

F404 high pressure turbine (HPT) shaft line, including shot

peen, wet blast (a surface finishing process), and turning

operations. During wet blast, media would settle at the bottom

of the machine, causing an hour of lost time each time they

ran parts through. In November, the team focused on

redesigning the fixture and installed an air bubbler to prevent

settling. This eliminated more than an hour of setup time per

batch and removed a daily loss of three to five hours from this

process. This one small improvement, combined with other

similar changes across the value stream, has contributed

to a 49% lead time reduction for the HPT shaft.

This is Continuous Improvement, a mindset derived

from the belief that we can get better every day.

Building off an installed base of 80,000 engines and 2.3

billion commercial flight hours, we don’t rest — we draw from

our lessons in the field to constantly enhance our processes

and platforms.

Take the GEnx. After it entered service in 2011, our engineers

set out to improve the HPT blade’s performance in hot and

harsh environments. Realizing that heat and dust were playing

a significant role, the team fine-tuned our dust ingestion

testing to better simulate real-world conditions. This allowed

us to prove out new durability upgrades that have resulted in

the GEnx’s time-on-wing to more than double in harsh

environments, while also creating the durability testing

standard that all our engines now follow.

We continue to draw on these learnings as we prepare our

next engines for the field. Just look to the GE9X, which will be

our most tested engine in history when it enters service to

power Boeing’s 777X. With more than 30,000 cycles of testing,

including 9,000 endurance cycles, we are preparing this

engine now for what it will experience in various conditions

in the years to come.

Through the CFM RISE program, we are focused on advancing

a suite of technologies that will power the next generation of

flight, including Open Fan, compact core, hybrid electric, and

alternative fuels. The architecture of Open Fan is the most

promising path to achieving a 20% step change in durability

and efficiency for next-generation narrowbody aircraft.

It offers a new jet engine design that removes the traditional

casing, allowing for a larger fan size with less drag to improve

fuel efficiency — a key concern for our airline customers.

Additionally, to accelerate our progress on hybrid electric

flight, we are partnering with BETA Technologies to co-

develop a hybrid electric turbogenerator while we continue

to work with NASA to advance hybrid electric propulsion

technologies for flight tests.

In total, RISE has completed over 350 tests and more than

3,000 endurance cycles. This includes dust ingestion testing

that began in 2025 on next-generation HPT airfoils — the first

time we’ve done this in the technology development phase,

ensuring durability is woven into the work from the beginning.

Ultimately, as we advance new technologies, we are not

only informing future applications but also applying those

learnings across our current platforms — for both commercial

and defense.

This approach to improvement through innovation further

extends into the work we are doing to support a rapidly

evolving threat landscape. We know we play a vital role in

powering the warfighters who defend freedom. It is a no-fail

mission and one that drove us to increase defense engine

deliveries by 30% in 2025.

That mission also drives our ongoing development for

next-generation aircraft programs — whether that’s in

support of the Next Generation Adaptive Propulsion program

(NGAP) with the XA102 or the F/A-XX program. We are also

focused on delivering differentiated capabilities that can

support demand across collaborative combat aircraft (CCA)

and unmanned platforms. Throughout 2025, we took steps to

expand our work in this space, partnering with innovative

disruptors to accelerate technology development and bring

capability to the field faster. We expanded our partnership

with Kratos to advance propulsion technologies for small,

affordable unmanned aerial systems and CCA-type aircraft.

At the same time, we are taking opportunities to innovate on

our proven propulsion systems. Our F110 engine, which has

four decades of continuous production, was selected to power

Shield AI’s autonomous vehicle, capable of vertical takeoff

and landing. Regardless of platform, we stand ready to deliver

and help ensure the United States maintains air superiority.

We know that relentless innovation is key to our future.

That is why, together with our customers, we’re investing

nearly $3 billion in research and development annually,

knowing it may be decades before we see any meaningful

returns. The CFM LEAP program broke even for the first time

in 2025, roughly nine years after it entered service, and it will

take two decades since the inception of the program for us to

recover our initial investment. We wouldn’t have it any other

way. The bets we take to improve our services and equipment

are worth it to deliver value to our customers and invent the

future of flight.

Delivering Lasting Results

One tape dispenser. One test cell. One hour removed from

a process. The great basketball coach John Wooden once

said, “It’s the little details that are vital. Little things make

big things happen.” At GE Aerospace it’s the small things

that matter most to us because together, they enable the

big things, like inventing the future of flight.

The small gains built from FLIGHT DECK also turn into

pervasive operational improvements that are underpinning

our financial results. This was reflected in our 2025

performance as adjusted revenue* increased 21%, and

total orders grew 32% year-over-year. Our operating profit*

increased 25% to $9.1 billion, and our free cash flow* was

up 24% to $7.7 billion. We grew our backlog by nearly $20

billion to roughly $190 billion as demand for our services

and engines remained robust.

While our financial performance in 2025 was certainly

encouraging, our aspirations are not about having a solid

quarter or year — it’s about having a great decade. With

our behaviors and FLIGHT DECK at work at every level of

the company, there is no limit to what we can achieve.

Thank you for your investment and belief in GE Aerospace.

H. Lawrence Culp, Jr.

Chairman and CEO, GE Aerospace