GE · Earnings call · 2026Q3T · Full report

Supply Chain Constraints

GENERAL ELECTRIC CO · 2026-10-20 · Importance 32 · Surprise 24

Material availability improved, with priority supplier material input increasing double digits year-over-year for the tenth consecutive quarter, but strong demand still caused spare-parts delinquency to rise sequentially. More than 95% of fourth-quarter spare-parts revenue was already in backlog, and GE said conversion from orders to revenue remained longer than the typical six-to-nine-month period because of supply-chain conditions and original-equipment production constraints. GE expects further supply-chain progress in 2027 while prioritizing lower delinquency and shorter customer lead times.

Key facts

• GENERAL ELECTRIC CO said priority supplier material input increased double digits year-over-year again in the third quarter and this quarter marks the 10th consecutive quarter of sequential material input growth.
• GENERAL ELECTRIC CO said priority supplier material input increasing double digits year-over-year contributed to LEAP engine deliveries growing 26% year-to-date.
• GENERAL ELECTRIC CO said priority supplier material input grew double digits year-over-year in the third quarter and material deliveries have grown for 10 consecutive quarters with double-digit growth this quarter.
• GENERAL ELECTRIC CO said turnaround time is down by over a week since the end of 2025, including LEAP now down two weeks.
• GENERAL ELECTRIC CO said spare parts delinquency increased sequentially despite strong revenue growth, reflecting strong underlying demand.