GE Aerospace DPT Investor Day Takeaways

Goldman Sachs reiterates a Buy rating on GE Aerospace following an investor day focused on its Defense & Propulsion Technologies segment, which highlights a $30bn+ backlog and 40-50 bps annual margin expansion targets.

Key Takeaways

• 1.The GE Aerospace Defense & Propulsion Technologies (DPT) segment is positioned for strong growth and margin expansion, supported by a $30bn+ backlog.
• 2.Management expects DPT operating margins to expand by 40-50 bps annually, driven by the 'Flight Deck' lean operating model and increased services volume.
• 3.Next-generation revenue, including hypersonics and uncrewed systems, is projected to reach ~25% of DPT revenue by 2035.

Table of Contents

• DPT segment overview
• Defense & Systems (D&S)
• Aeroderivatives
• Propulsion & Additive Technologies (P&AT)
• International expansion and Avio Aero
• Edison Works and Next-Gen Growth
• Margin drivers
• Price target methodology and key risks

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