GE Aerospace (GE)

The sleeper story is supply chain productivity gains creating compounding leverage-when shops stop waiting for parts, they don't just complete more visits, they get massive productivity unlocks that flow straight to margins. The obvious headline is another revenue beat, but the real story is margin trajectory: they're hitting $10B profit two years early, yet CES margins stay flat in 2026 despite $3.5B services growth because easy wins are over. The binding constraint isn't demand (backlog up $20B) or even supply (priority suppliers at 90%+), it's the margin math: NINEX losses doubling plus declining spare engine ratios offset services leverage. Culp's most telling quote: 'There's much more to do here in 2026'-still acknowledging execution gaps. My view changes if they start missing shop visit output targets or priority supplier performance drops below 90%.