GE Aerospace says CPP deal not a blueprint for broader integration

General Electric

17/09/2026 20:53

CHICAGO, Sept 17 (Reuters) - GE Aerospace GE.N does not see broad vertical integration as the answer to aerospace supply-chain constraints, Chief Financial Officer Rahul Ghai said on Thursday, after the engine maker agreed to buy castings supplier Consolidated Precision Products for $11.75 billion.
The company unveiled the CPP deal last week as it seeks to expand supplies of precision-cast metal parts used in jet engines, including turbine blades and vanes.
Ghai called the CPP deal a "unique situation"
GE believes it can improve CPP's delivery performance, expand production and speed up the introduction of new airfoil technology
"That's not to say that we're going to go vertically integrate every single part of our value stream," Ghai told a Morgan Stanley conference
Industry still needs to add manufacturing capacity in several areas, Ghai said, adding that the capacity squeeze was not going away quickly
GEnx engine deliveries rose 50% from a year earlier in the second quarter, with GE expecting stronger year-on-year and sequential growth in the third quarter, Ghai said
Airlines not altering their long-term fleet plans, Ghai said
He said airlines were being more deliberate about fleet decisions after their experience during the pandemic, when quickly cutting capacity created challenges in maintaining market share
GE expects the retirement rate for aircraft powered by older-generation CFM56 engines to be between 1.5% and 2% this year, down from a previous estimate of 2% to 3%

 (Reporting by Rajesh Kumar Singh, Editing by Rosalba O'Brien)
 ((rajeshkumar.singh@thomsonreuters.com; +1-313-484-5370; Reuters Messaging: rajeshkumar.singh.thomsonreuters.com@reuters.net))