Q : At the start of '24, you were looking for about $1 billion of operating profit growth in '25 versus 2024. What changed in the base profit of '24 that didn't translate into '25? A : The business is performing better than expected, with profit growth over two years being a third better than anticipated. For 2025, CES profit is expected to be up about $700 million, driven by services revenue growth. However, OE impacts from R&D and GE9X shipments will offset some of this growth.

Q : Are there other opportunities for the GE9X engine beyond the 777X? A : Currently, the focus is on supporting Boeing with the 777X launch. The engine has a strong backlog with nearly 1,000 engines, and customer feedback is positive. The engine is undergoing extensive testing, making it one of the most tested in GE's history.

Q : Can you discuss the CES margins in Q4 and the outlook for 2025? A : CES had a strong Q4 with favorable services mix and engine mix. For 2025, spare parts are expected to remain strong, with departures up mid-single digits and pricing changes contributing to growth. Shop visit revenue is expected to grow mid-teens, driven by increased work scopes and modest price increases.

Q : How is the supply chain situation, and what are the expectations for 2025? A : The supply chain is improving, with sequential progress in engine output. The focus remains on working with critical suppliers to eliminate constraints. The expectation is for continuous sequential improvement in 2025, with a stronger start in CES and a gradual ramp-up in DPT.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

This article first appeared on GuruFocus .