GE Aerospace faces macroeconomic volatility (recession, inflation, supply chain disruptions), geopolitical risks (Russia-Ukraine conflict, Middle East tensions), and market developments affecting airframers, airlines, and suppliers. Production and delivery challenges due to material availability and supplier performance are also noted. Credit rating downgrades, liquidity needs from insurance operations, and legal proceedings (shareholder lawsuits, Bank BPH litigation) pose further risks. Uncertainties about future conditions could lead to impairments of assets and revisions to estimates.
Financial Upside
Strong demand for commercial air travel and government defense spending are positive drivers. Increased revenues from services (spare parts, shop visits) and equipment (improved pricing) are noted. Gains on retained and sold ownership interests (GE HealthCare, AerCap), and sales of business interests (non-core licensing) contributed to improved earnings. Higher cash flows from operating activities and free cash flow are also positive indicators.
