Business Breakdowns

Ramesh Narayanaswamy

GE Aerospace’s pure-play franchise powers three out of four commercial takeoffs daily, with 70,000 engines in service and 70% narrow-body share.LEAP losses at OE can convert into mandated aftermarket economics: 60% gross margins, plausibly 40%+ operating margins, and 8–10% commercial-services growth for at least five years.Yet 40x free cash flow prices optimism, while the open-fan bet is at least a decade away and Boeing could dual-source its next narrow body.

Bob Desmond

Trane’s operating-system rebuild paired cross-functional product growth teams with accountability for share and margins, and pilot categories grew 2–3× peers before company-wide rollout.D.R.Horton’s land-light shift moved optioned land from about 25% to 75%, turned $2.3 billion of 2013 net debt into $600 million more cash than debt, and lifted ROE from about 10% to 22%.