Business Breakdowns GE Aerospace: Full Throttle - [Business Breakdowns, EP.235]
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Nov 14, 2025 
Ramesh Narayanaswamy, co-founder of Tourbillon Partners, shares his expertise on GE Aerospace, a pure-play aerospace business. He dives into the complexities of the aerospace supply chain and the unique dynamics of aircraft engine manufacturing. Listeners will learn about GE's impressive revenue scale, the importance of aftermarket services, and how military programs differ from commercial ones. Ramesh also discusses the significant role of the LEAP engine and the future growth potential amid industry challenges.
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Services Drive Predictability
- About 70% of GE's revenues come from services, which are highly predictable due to regulatory-mandated shop visits.
- The aftermarket is the most profitable and stable revenue stream for GE.
Simplify And Focus The Portfolio
- Focus a conglomerate by divesting non-core units to unlock latent value and reduce complexity.
- Apply continuous improvement and customer focus to operationally improve margins and culture.
Technical Barriers Create Moats
- Jet engines are among the toughest technical manufacturing challenges, with extreme temperatures, materials, and regulatory demands.
- High technical barriers sustain a concentrated supplier base and durable competitive moats.
