Sometimes the most expensive supplier is the one you do not own.

The Executive Question

What is the economic value of removing a constraint from your entire business?

What the Headline Multiple Misses

At roughly 26x standalone 2027 EBITDA, the deal looks expensive on supplier earnings alone.

But CPP makes mission-critical castings used across major commercial and defense engine programs. GE expects airfoil demand to grow more than 30% by 2030.

The real valuation question is not only what CPP earns. It is what CPP ownership could unlock across GE Aerospace.

CPP 2027E Revenue Mix

• Commercial aerospace ~60%
• Defense ~20%
• Power + other ~20%

Derived: $11.75B / 26x implies approximately $452M of standalone 2027E EBITDA.

The Strategic Value Test

What GE is effectively underwriting:

• Standalone economics: ~$452M implied 2027E EBITDA before synergies, based on GE's disclosed ~26x multiple.
• Company-identified value: ~$200M expected net synergies from productivity, supply chain, procurement and other improvements.
• Strategic option value: Control, capacity, delivery certainty and tighter design-to-manufacturing integration.

Why the Premium Can Make Sense

• Capacity matters: GE forecasts more than 30% airfoil demand growth through 2030.
• Bottlenecks ripple: casting availability can constrain engine and aftermarket output.
• Integration can improve economics: GE points to yield, utilization, scrap, rework and procurement.
• Technology can move faster: tighter design and manufacturing can shorten development cycles.

What Would Make the Deal Disappoint

• Synergies arrive slowly: 26x standalone leaves little room for ordinary execution.
• Reinvestment is heavier: capacity expansion can absorb cash before benefits appear.
• Customer dynamics change: CPP serves programs beyond GE, including competitors.
• Demand normalizes: the premium is easier to justify while capacity stays scarce.

GE targets adjusted EPS and free cash flow accretion in year 1 and double-digit ROIC by year 5.

If You Were Evaluating the Transaction, What Would You Test First?

1. Capacity unlocked: How much incremental engine and aftermarket output can CPP ownership support?
2. Supply risk reduced: What is the value of fewer delays, quality issues and production disruptions?
3. Synergy credibility: How much of the ~$200M is operationally controllable versus assumption-dependent?
4. ROIC path: What has to be true about margins, reinvestment and utilization to reach double digits by year 5?