Kulp Adopts Plan to Sell Up to 300,000 GE Aerospace Shares
Key Facts
H. Lawrence Culp Jr., chairman and chief executive officer of GE Aerospace, adopted a prearranged trading plan on August 12, 2026, allowing him to sell up to 300,000 shares of the company through November 30, 2027. The company’s filing with the U.S. Securities and Exchange Commission said the plan covers some of Culp’s shares for diversification purposes. The filing does not specify the total value of shares that may be sold, as proceeds will depend on the number of shares executed and their sale prices. The move comes as third-quarter results showed growth in orders, revenue and operating profit. Free cash flow, however, declined during the period, putting liquidity performance alongside indicators of business growth in the results.
GE Aerospace’s total orders reached $19 billion in the third quarter of 2026, up 49% year over year, according to the company’s results filed with the SEC. Adjusted revenue rose 18% to $13.3 billion, while revenue under U.S. generally accepted accounting principles increased 16% to $14.1 billion. Operating profit was $3 billion, up 30% from the year-earlier period. Adjusted earnings per share also rose 36% to $2.25. The figures reflect an expansion in activity, revenue and operating profit during the quarter, alongside strong growth in orders.
On liquidity, free cash flow fell 14% to $2.0 billion in the third quarter, while cash generated from operating activities declined by the same percentage to $2.2 billion. The decrease contrasts with the year-over-year growth in operating profit and adjusted earnings per share during the period. Remaining performance obligations totaled $212.084 billion as of September 30, 2026. These are contractual revenues that the company has yet to fulfill, in whole or in part. Of that total, $178.747 billion was related to services. The obligations provide a picture of the volume of contracted business on hand, while cash flow figures show what was realized in cash during the quarter.
Culp said commercial aviation services grew 23% in the third quarter and that the company expects low-double-digit growth in 2027. He tied that outlook to a commercial services backlog exceeding $170 billion. Remaining performance obligation data show different revenue recognition timing for equipment and services: the company expects to recognize 32% of equipment obligations within a year of September 30, 2026, compared with 12% of services obligations. This means a smaller share of service obligations enters revenue over the same one-year horizon, even though services account for the larger share of remaining obligations. These figures put the services growth outlook in the context of a large contractual base and an execution schedule spanning different periods.
The company raised its 2026 fiscal-year outlook to adjusted revenue growth of about 19%–20%, operating profit of between $10.9 billion and $11 billion, adjusted earnings per share of between $8.00 and $8.10, and free cash flow of between $9.1 billion and $9.4 billion. On October 20, the company had announced that it was raising its operating profit outlook to $10.5–$10.6 billion from $10.25–$10.35 billion, supported by higher services growth and a lower impact from the GE9X engine. A Reuters report that day also said the updated outlook included weaker-than-expected fourth-quarter earnings and additional costs in the following year to increase production of delayed Boeing 777X engines. The report said higher jet fuel costs were pressuring airline earnings, while a backlog of engines awaiting repair was supporting maintenance demand. The company’s 2026 outlook remains a reference point for expected performance through year-end.
In its quarterly filing, GE Aerospace said disruptions to oil shipments and higher prices could pressure aviation customers, leading to fewer shop visits and purchases of spare parts and spare engines, with the potential to reduce the profitability of long-term contracts. It added that these factors had not had a material impact on its operations during the nine months ended September 30, 2026. In September, the company announced an agreement to acquire Consolidated Precision Products for $11.75 billion, saying the deal was intended to support capacity expansion and accelerate engine technologies. As for the stock, EL7 data showed it closed at $323.24 on November 6, after moving between $314.73 on November 5 and $329.45 on November 4. On October 21, Investing.com reported that BNP Paribas Exane had cut its price target on the stock to $280 from $305 and maintained its Underperform rating.