High expectations for new Pratt & Whitney Canada PT9. Care to share? Pratt & Whitney Canada (PIC) revealed the certified PT9 turboprop engine, with high expectations and thrust levels that fit between the PT6 and PW127 turboprop families. The PT6 is the best selling turboprop in history. The PT9 is not a replacement, but a complimentary turboprop engine family. High expectations. The PT6 has a strong history of market leadership and continuous improvement. The engine has been in service since the mid-1960. Expectations for new turboprops from Pratt & Whitney Canada are quite high. PWC has not released details of the new engine, but have provided hints. The new engine will produce 33% more power at altitude, with 20% lower fuel burn than existing engines. Since the PT6 is ubiquitous in the market, internal comparisons are inevitable. PWC believes the PT6 still has a lot of runway and production life. Your grandfather's PT6 from the 1960s is quite different, except in configuration, than today's models. Over the years, changes have included advanced materials, new control systems, improved compressors, hot sections, and propellers. PWC has effectively re-invented the PT6 multiple times. The PT9 has large shoes to fill to compete with a program that has led the market for more than 60 years, but will be expected to do so. This is a key challenge for Pratt & Whitney Canada - maintaining market leadership. A new engine from PWC will bring expectations for high reliability and exceptional performance on day one. Leapfrogging the competition. New competition is coming from the General Electric (GE) Catalyst turboprop that features additive manufacturing. PWC needs to "one-up" the competitor to retain its massive lead in the turboprop market. The slightly larger PT9 is one answer for both single-engine and multi-engine turboprop designs. PWC have incorporated technologies from the recently updated PW127XT and PW800 into the PT9. The experience of these programs provide improved materials and efficiency to the PT9 design. Since the feeder programs are mature, there is high confidence that the engine will meet its design objectives. When first launched, the GE Catalyst touted a number of planned advantages over the PT6. The engine featured innovations to reduce pilot workload, including a FADEC-integrated auto-throttle and propeller controls. During the competitor's development period, PWC stepped up and matched most of those capabilities for the PT6. PWC actually beat GE to the market with many of those innovations. PWC is very adept at keeping its engines at the forefront of technology, with decades of innovation building on the PT6 design and operational experience. The early PT9 that will be the baseline for a new engine family that will need to carry on the tradition of continuous improvement. New applications imminent? Pratt & Whitney would likely not publicly announce the new model without at least a potential launch customer, and possible additional programs in the pipeline. Therefore AirInsight Group would expect additional announcements and potentially new turboprop programs in late 2026 or early 2027 that will utilize the new engine. That is likely the point at which more details on the new engine family will be revealed. Advancing materials, design, and digital technologies. The new engine will be in the 2,000 shaft horsepower range, and incorporate a variety of technologies from multiple program. The engine configuration has a reverse flow combustor like the PT6, and incorporates a barrel section that is 19 inches wide to enable low-drag installations. The high pressure rotor section is reported to be similar to the PW307 turbofan, and the engine will feature digital monitoring technologies more advanced than the PT6E. The PT9 will monitor more than 300 engine parameters and incorporate PT6 E-series engine technologies that reduce pilot workload, including single-lever integrated propeller and engine controls. The engine also incorporates advanced alloys, additive manufactured parts, and fewer lift-limited parts. All of these technologies would be expected in a new engine program today, and will likely result in a step change in performance and fuel efficiency. The bottom line. Pratt & Whitney has led the turboprop industry for six decades, and needs to maintain its market momentum. The PT9 will provide a new engine class that will fill a market gap between the PT6 and PW127XT and enable more efficient business and regional aircraft. Incorporating new technologies while maintaining the reliability of the venerable PT6 is a key challenge. PWC, taking proven technology from multiple programs, will likely succeed in that regard. Stay tuned for the next announcement, likely the first application for the PT9. The PT9 is arriving just as aviation is in the midst of an electrification revolution. PWC and others are working on hybrid engine technology for future electrified aircraft programs. Given electrification, AirInsight Group don't expect a 60 year production run for the PT9. Currently, electrification technology is easier for small engines, and the PT9 is less likely to be replaced in the near term than the PT6. Nonetheless, AirInsight Group expect technology changes and electrification to impact the market over the longer term. President AirInsight Group LLC

Finding the 'orphans' who can surpass their parents. But it's unwise to buy just any spinoff. To make the most out of your investment, you need to understand all the aspects surrounding the separating business. Only then will you be best positioned to take advantage of the potential boom that could emerge. In today's Masters Series, adapted from a Market Maven special report, editor Gabe Marshank shares three tips for finding high-quality spinoffs... By Gabe Marshank, editor, Market Maven When a company goes public via a traditional IPO, it selects a group of Wall Street banks to price its stock at a level that makes sure all the shares get sold. To help that process, the banks produce research, host analyst calls, and lead the companies on roadshows, all in an effort to drum up demand for the stock. The banks take a cut of the IPO proceeds. So, it should come as little surprise that research is almost universally positive. By the time an IPO is trading, everyone knows the stock's upside case. Spinoffs, on the other hand, make no money for Wall Street because the stock is handed directly to the shareholder. There is no IPO, and therefore no IPO proceeds to incentivize a bank to drum up interest. So, the banks don't bother paying attention to them, which means most spinoffs start trading with little to no analyst coverage. They are, in stock market terms, "orphans." As a result, the orphans are often overlooked and misunderstood. That doesn't just go for the Wall Street investment banks. Quite often, the money managers who actually receive the spun-off stock don't know what they own and dump the shares. We can use a real-world example to illustrate this... General Electric ("GE") is one of the country's most storied companies... but after a series of mergers and acquisitions in the 1980s and 1990s, it had fallen on hard times. Prior management stepped down, and the company was simplified through a series of sales and spinoffs. By 2024, GE was mostly an aerospace company, selling jet engines worldwide. But it still owned a smaller division that made turbines for power plants called GE Vernova (GEV), which it wanted to spin off to shareholders. At the time, GE sported a market value of $150 billion. When GEV was spun off, it made up just $35 billion of that. Fast-forward two and half years, and GE has done well, nearly doubling and growing its market cap to $290 billion. But again, the spinoff has dramatically outperformed... GEV is now a $265 billion company, up about 700% since the spinoff: Now, I can tell you from my own experience that money managers love a simple story. They owned GE for its dominant jet-engine franchise. Trying to figure out GEV would require learning a whole new industry because the customers were utilities rather than airlines. And at the time, GEV didn't make up a large portion of its parent company. It's usually easier to just sell the spinoff and move on. This tends to push the share price of the spinoff lower from the start. So, there are two reasons that spinoffs become great investment opportunities. One, investors who receive the spinoff after owning the parent company often don't have any interest in owning the spinoff, because they're smaller and usually in different lines of business. And two, unlike IPOs, there's no educational process (i.e., an investor roadshow) to find them a new home, so they become "orphans." That's a recipe for spinoffs to trade at prices that are just way too cheap... And it's a big reason why spinoffs consistently outperform their parents. That said... not all spinoffs are created equal. My first mentor on Wall Street was Larry Robbins, who went on to become the billionaire founder and portfolio manager of Glenview Capital Management. At the time, we were working at Omega Advisors under a different billionaire, Lee Cooperman. Robbins explained to me that there were a few different types of spinoffs, and that the reason a company was spun off mattered. He and I aggressively studied these situations. 1. Sometimes, it was so the parent company could dump a structurally weak business. This is, of course, the kind of spinoff you want to avoid. For example, in 2011, Sears Holdings - the parent company of department stores Sears and Kmart - tried to get rid of home-improvement chain Orchard Supply Hardware, only to see it quickly go bankrupt. Time (the company that houses publications such as People, Time, and Sports Illustrated) was spun out from Time Warner, fell totally flat due to challenges in publishing, and sold itself for a small fraction of its initial spinoff value. It goes without saying, but it's always a good idea to avoid a business in terminal decline - or what folks in the business like to refer to as a "melting ice cube." 2. Other times, a business is perfectly fine, but the parent company thinks it drags down the combined financials. This was the case when E.On, a German utility, decided to spin off its power-generation business as Uniper in 2016. Power generation isn't a sexy business, and at the time it was pretty depressed due to cyclically low energy prices. The parent company was tired of it and spun it off to shareholders, who largely dumped the stock. I convinced my boss at the time, David Einhorn, to invest more than nine figures into it... It paid off massively. The stock doubled in the next 18 months, and this obscure, little-known, downtrodden utility netted Greenlight more than $100 million in profits. I did the same with Dia, a Spanish convenience-store operator spun off by its French parent company. Dia was a forgotten business, now nimble and independent, with - most critically - a management team financially incentivized to push its share price higher. It's a recipe for a winning investment. And because this second situation is the reason behind most spinoffs, it's also why spinoffs tend to outperform their parents. But there's one last type of spinoff that's even better... 3. When a company is forced to spin off an asset it loves. There are plenty of examples of this in history, starting with the breakup of Standard Oil more than a century ago. Antitrust watchdogs at the time demanded a separation. The resulting 33 newly independent companies - including what became ExxonMobil (XOM), Chevron (CVX), BP (BP), and others - were smaller, nimbler, and able to improve their profits... and push their share prices higher. When AT&T (T) was forced to break up in 1984, the resulting seven "Baby Bells" turned into huge winners for investors. And as I mentioned yesterday, the eBay (EBAY) spinoff of PayPal (PYPL) only came from intense outside pressure applied by Carl Icahn. PayPal shares soared to their COVID-era peak before coming back down to Earth. Stocks like these meet the criteria that I'm looking for when I'm adding businesses to my portfolio. And if you want to find the best spinoffs on the market, I suggest you consider implementing the same guidelines. Gabe Marshank Editor's note: A new flood of "orphans" could be on the horizon. Gabe has spotted the development of what he calls Investable Spinoffs. Because these companies will be forcefully sold off, Wall Street won't touch them, sending share prices far below their value.

General Electric innovates with advanced gas and hydrogen turbine technologies. Key points. * GE is leading the development of H-class gas and hydrogen turbines. * The turbines are designed for scalability and efficiency in energy production. * GE's innovative approach aims to reduce carbon emissions significantly. * The company focuses on integrating hydrogen into existing gas turbine technology. General Electric (GE) is at the forefront of the energy revolution with its innovative H-class gas and hydrogen turbine controls. As a leading global Original Equipment Manufacturer (OEM), GE is committed to enhancing the efficiency and sustainability of energy production through advanced turbine technologies. The latest advancements in their turbine systems highlight a significant shift toward integrating hydrogen as a viable fuel source alongside traditional natural gas. GE's H-class turbine technology is designed for scalability, enabling it to adapt to various energy demands while maintaining high operational efficiency. This flexibility is crucial in today's energy landscape, where the need for cleaner and more sustainable energy sources is more pressing than ever. By harnessing hydrogen, GE aims to significantly lower the carbon footprint of its energy solutions, positioning itself as a leader in the transition to cleaner energy alternatives. The company's focus on hydrogen development is particularly relevant as governments and industries worldwide are pushing for a reduction in greenhouse gas emissions. Hydrogen, when used as a fuel, produces only water vapor as a byproduct, making it an attractive option for decarbonizing the energy sector. GE's innovative approach not only supports the global move towards hydrogen adoption but also leverages the existing infrastructure of natural gas turbine technology, ensuring a smoother transition for many energy providers. This initiative by GE reflects a broader trend within the energy sector, where companies are increasingly seeking to innovate and adapt to the new realities of climate change and resource scarcity. By investing in advanced turbine technology that incorporates hydrogen, GE is not only enhancing its product offerings but also contributing significantly to the global efforts in achieving sustainable energy goals. The positive outlook surrounding GE's initiatives in gas and hydrogen turbines highlights the potential for transformative change in how energy is produced and consumed, aligning with the urgent need for more environmentally friendly solutions. In summary, General Electric is leading the charge in developing advanced hydrogen and gas turbine technologies, positioning itself as a pivotal player in the transition to a more sustainable energy future. October 5, 2026 at 04:00 PM