GE · 10-Q · 2026Q2 · Full report

Supply Chain Constraints

GENERAL ELECTRIC CO · 2026-07-16 · Importance 65 · Surprise 48 · In source text

GE facilitates voluntary supply chain finance programs that materially scale supplier payment options; supplier invoices paid through third-party programs were $1,927 million for the six months ended June 30, 2026 (up from $1,545 million in 2025). These programs provide participating suppliers the option to sell GE receivables to third parties, and GE reports it has no costs associated with the program. The volume and growth of these programs (primarily in CES) indicate broader supplier financing usage to support production and aftermarket supply chains, and they affect reported accounts payable and progress collections dynamics. Use of these programs may reduce supplier working capital constraints but can change the timing and parties in cash flow settlement.

Key facts

• Global material availability continues to cause disruptions and has impacted production and delivery; GE is investing in manufacturing, overhaul facilities and supply chain to increase production and strengthen yield. source
• Inventories including deferred inventory costs at June 30, 2026: $12,440 million (Raw materials and work in process $9,716 million, Finished goods $1,703 million, Deferred inventory costs $1,022 million). source
• Accounts payable at June 30, 2026: $10,822 million (trade payables $6,199 million, revenue sharing and other partner payables $2,578 million, supply chain finance programs $1,497 million). source
• Total supplier invoices paid through third-party supply chain finance programs: $1,927 million for the six months ended June 30, 2026 and $1,545 million for the six months ended June 30, 2025. source

Impact estimates