GE Aerospace Disputes GEnx Engine Delay Claims, Cites Months of Supply at Boeing

GE Aerospace on Thursday refuted concerns raised by Boeing that it is a bottleneck in the planemaker's efforts to increase 787 Dreamliner production. CEO Larry Culp stated that Boeing has a surplus of several months' worth of GEnx engines on site, countering claims that delivery delays are holding up the assembly line.

GE Cites Increased Shipments

In an interview with Reuters, Culp provided data to support his position, highlighting a significant acceleration in engine deliveries. He noted that GE's widebody engine deliveries rose 30% year-over-year in the second quarter, with shipments of the GEnx model increasing by "significantly more."

Culp confirmed that GE has a substantial inventory of GEnx engines already at Boeing's factory in Charleston, South Carolina. "We have several months’ worth of GEnx engines on site," he told Reuters. "So, we don’t think we’re pacing deliveries whatsoever."

Boeing's Production Goals

The comments from GE's leadership come after Boeing CEO Kelly Ortberg identified GEnx engine deliveries as a potential hurdle to the company's production goals. Boeing aims to ramp up production of its 787 widebody jet from approximately eight to 10 aircraft per month.

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For investors, this supply chain relationship is critical. The GEnx engine is the powerplant for about 80% of 787 Dreamliners, making the program's success vital for GE Aerospace's revenue as international demand for widebody aircraft recovers.

Supply Chain Outlook

While pushing back on the delay narrative, Culp acknowledged that GE must continue to increase its delivery pace to match Boeing's future production targets. "GE will support and is supporting the 787 ramp," he said, affirming the two companies are "well aligned."

Culp also offered a cautiously optimistic view on the broader aerospace supply chain, stating that he believes it has "turned the corner." However, he noted that further increases in deliveries would be necessary through the second half of the year and into the next to meet rising demand.