GE Aerospace (GE)

The sleeper story is that GE Aerospace is hitting operational capacity limits that will cap growth regardless of demand, evidenced by 20% sequential growth in delinquencies despite claims of supply chain improvement. The headline guide raise is mostly acknowledging Q1's embedded outperformance that management sandbagged in April, not new acceleration. The binding constraint is their ability to convert $170B of backlog into deliveries, with shops oversubscribed by 40% and spare parts backlogs growing despite record output. Culp admitted 'our spare parts delinquencies are up, unfortunately' while celebrating operational progress, a telling contradiction. My view changes if delinquency growth reverses in Q3, proving they can actually scale execution.