After COVID, the whole world rushed back to flying, and airline orders piled up into a 12-year backlog — more than Airbus and Boeing can even build in time. This is the "super-cycle" of commercial aviation. But the rookie trap is thinking the profit comes from each plane sold. The reality: the airframe itself is a thin-margin business, while the big money flows to engines, parts, and maintenance — and that keeps paying every year for decades. This lesson is the map that strings the industry's 5 categories together — who does what, and where the real power actually sits (each category has its own deep-dive chapter).
Gulf recovery, missile surge, and space consolidation reshape aerospace
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Gulf airlines recover as war ends Gulf carriers are back to 82% of pre-war flights after a ceasefire, with Emirates, Qatar, and Etihad near 90%. This boosts demand for new aircraft and maintenance services as regional airspace reopens and normal operations resume.
Shows a major demand recovery for aircraft and MRO after a conflict that had slashed industry profits.
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Multi-year missile production surge Gabelli's Bancroft sees a multi-year U.S. missile and aircraft production expansion, driven by arsenal replenishment. Honeywell, L3Harris, and Albany International are picks, with missile production potentially tripling or quadrupling, boosting demand for propulsion, avionics, and aftermarket services.
Highlights a new long-term demand driver for defense-exposed aerospace suppliers.
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Embraer considers narrow-body challenge Embraer is weighing entry into the narrow-body jet market, directly challenging Airbus and Boeing's duopoly. Carriers frustrated by delivery delays are requesting alternatives, but Embraer cautions it would be a bet-the-company move, increasing long-term competition.
Signals a potential shift in competitive dynamics for the airframe OEM sub-area.
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Rocket Lab acquires Iridium for $8B Rocket Lab agreed to buy Iridium for $8 billion, creating a vertically integrated launch and satellite communications player. The deal adds recurring revenue but carries execution risk, and Rocket Lab also hit 10 consecutive Electron launches and joined the Nasdaq-100.
Represents a major consolidation in space and launch, affecting competitive dynamics for aerospace players.
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Engine and parts demand powers theme; Boeing certification and fuel costs drag
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Engine and aftermarket demand keeps compounding GE's commercial engine revenue jumped 27% with aftermarket up strongly, Howmet, TransDigm, StandardAero, Loar and ATI all beat and raised guidance on engine spares and repairs. Airlines flying and fixing jets keeps parts, engines and repair shops growing, the theme's strongest force.
Shows the broad, repeated earnings evidence that aftermarket and engine demand is the theme's main engine of growth.
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Boeing's MAX 10 certification stalls again The FAA halted 737 MAX 10 approval over a new software issue, and earlier ordered inspections of 471 MAX jets for fuselage cracks. Delayed certification postpones deliveries and cash, and pushes back engine and parts revenue tied to those planes.
A fresh regulatory setback directly delays Boeing's recovery and the supplier revenue that follows each delivery.
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Defense orders add years of backlog Boeing won a $20B+ Navy F/A-XX fighter contract, Taiwan confirmed its 66 F-16V order is progressing, and Saudi F-35 and tanker deals advanced. These are long-dated orders for airframes, engines and missile suppliers, steadying the defense side.
Large new defense awards lock in multi-year revenue for airframe and engine makers, a durable theme driver.
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MRO consolidation and capital reshape the aftermarket AAR agreed to buy 65% of MRO Holdings for about $4B and posted record sales, while Orix bought UK parts recycler Airfin and FTAI closed a $2B engine-financing facility. Money is pouring into repair and used-parts capacity, easing shortages but shifting winners.
Capital flowing into MRO and parts recycling expands aftermarket supply while concentrating power among larger players.
Q3 2026
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Defense restocking and engine demand lift aerospace, but fuel and delays bite
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Defense restocking and major orders drive demand NATO's $57B and Pentagon missile replenishment, plus Korean Air's $36B order, Turkish's 150 jets, Saudi F-35s, and Boeing's F/A-XX win, kept demand strong across defense and commercial aerospace.
This point captures the main positive force behind aerospace demand in the quarter.
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Engine aftermarket and parts demand boosts suppliers GE, Safran, Rolls-Royce, and Howmet beat expectations on strong demand for engine parts and aftermarket services, while GE's $11.75B CPP deal signaled accelerating industry consolidation.
This highlights a key earnings driver and M&A activity that supported the sector.
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Fuel price spike slashes airline profit outlook Jet fuel at $152 per barrel forced IATA to cut its 2026 airline profit forecast from $45B to $23B, pressuring carriers like China Southern and Lufthansa and threatening future aircraft orders.
This is the main negative force that could undermine aerospace demand.
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Production and certification delays constrain supply Boeing faced 737 wing shortages, 787 and MAX 10 certification delays, and 777X slipping to 2027, while trade threats against Bombardier and a 10,000-engineer UK shortage further limited output.
These supply-side issues are critical risks that could delay deliveries and revenue.
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Airframe OEMs
Airbus Delivers 72 Aircraft in September, Recovering from Delays, but New Quality Issue Emerges on A330
Airbus delivered 72 aircraft in September, a figure nearly matching the 73 delivered in the same month a year earlier, according to industry sources. If confirmed, that would exceed the mid-to-high 60s analysts had expected and top Jefferies' estimate of 68. The unexpected recovery comes amid concerns over recent manufacturing defects involving A321neo parts and system-wide delays caused by shortages of components such as engines. Meeting the year-end target of about 870 aircraft will require record deliveries in the fourth quarter, and Lars Wagner, CEO of the commercial aircraft division, said this week he is "very confident." Meanwhile, Airbus disclosed that it has advised airlines to check A330 aircraft for foreign objects after tools were found in the horizontal tail of planes earlier this year, which has delayed deliveries. The recommendation covers aircraft delivered between January 2021 and July this year, amounting to 160 planes, including 15 MRTT military aerial refueling and transport aircraft, according to Cirium data.
RTX Wins $6.3 Billion Munitions Boost in FY2026 Defense Bill
The FY2026 defense appropriations agreement includes more than $6.3 billion for 13 critical munitions and grants conditional multiyear procurement authority for eight of those programs, a tailwind for RTX Corp. as it scales production of AMRAAM air-to-air missiles, Standard Missiles and Tomahawk cruise missiles. RTX's order backlog reached a record $289 billion by the end of second quarter fiscal 2026. The company will spend $25 million to expand its Niepołomice site in Poland, which delivers tubular assemblies for commercial and military engines, following a $100 million capital outlay announced in April for its Rzeszów facility. RTX closed at $185.01 on October 1 with a market capitalization of about $249.3 billion, trading at a trailing P/E of 33.62x and a forward P/E of 24.57. Hedge fund ownership slipped from 95 funds in Q1 2026 to 92 funds in the following quarter, while BlackRock remains the largest institutional stakeholder with 110.53 million shares, or 8.20% ownership.
RTX · Demand · Positive FY2026 defense bill includes over $6.3 billion for 13 critical munitions and multiyear procurement authority, boosting RTX's AMRAAM, Standard Missile and Tomahawk programs.
RTX · Capital · Positive RTX will spend $25 million to expand its Niepołomice site in Poland, following a $100 million capital outlay for its Rzeszów facility.
FAA Clears Boeing 737 MAX Software Glitch as Not a Safety Issue
The Federal Aviation Administration has determined that a newly identified software glitch in the Boeing 737 MAX does not present a flight-safety concern, according to The Wall Street Journal. The agency convened its Corrective Action Review Board on Friday to assess whether the issue constituted an unsafe condition requiring immediate action. The FAA said the board reached its determination because pilots retain full control of the aircraft and the indications to the flight crew are clear and unambiguous, adding that it will consider appropriate action if new information emerges. The software problem had raised concerns among some aviation industry officials about potential safety implications when 737 MAX aircraft are landing under certain circumstances. Boeing shares traded 1.5% higher following the report.
Parker-Hannifin Sees Aerospace Growth, Acquires Filtration Group and CIRCOR Unit
Parker-Hannifin is riding strong momentum in its Aerospace Systems segment, where organic sales jumped 13.3% year over year in the fourth quarter of fiscal 2026 and orders rose 18% year over year, with management guiding fiscal 2027 organic sales growth of 7-10%. The company's Diversified Industrial segment also grew, with fourth-quarter organic sales up 4.9% in North America and 6.5% internationally, including 15.9% growth in Asia Pacific, and fiscal 2027 organic sales are projected to rise 5-8% in North America and 4-7% internationally. In August 2026, Parker-Hannifin acquired Filtration Group Corporation, a deal expected to contribute about $1.8 billion to sales in fiscal 2027 over the first 10.5 months after closing, while its May 2026 agreement to buy CIRCOR International's Commercial and Defense Aerospace business for $2.55 billion remains pending. Acquisitions added 1.2% to sales growth in fiscal 2026, but rising costs and debt weigh on results: cost of sales and SG&A rose 6.9% and 6.5% respectively in fiscal 2026, and management expects roughly $90 million in business realignment charges, $25 million in integration costs and $580 million in acquired intangible asset amortization in fiscal 2027, alongside long-term debt of $6.77 billion and $401 million in interest expense for fiscal 2026.
Aerospace & Aviation › Avionics & Aircraft Systems ▲Demand
PH · Capital · Positive Parker-Hannifin acquired Filtration Group and agreed to buy CIRCOR's aerospace business, adding sales but also debt, integration costs and amortization.
PH · Demand · Positive Aerospace organic sales jumped 13.3% and orders rose 18% year over year, with fiscal 2027 organic growth guided at 7-10%.
CIRCOR International, Inc. · Capital · Neutral Parker-Hannifin's $2.55 billion agreement to buy CIRCOR's Commercial and Defense Aerospace business remains pending.
Filtration Group Corporation · Capital · Neutral Parker-Hannifin acquired Filtration Group in August 2026, expected to add about $1.8 billion to fiscal 2027 sales.
Boeing Wins U.S. Navy F/A-XX Sixth-Generation Fighter Contract
Boeing has been awarded the U.S. Navy's F/A-XX sixth-generation fighter contract, a multi billion dollar program. The F/A-XX is planned to replace the Navy's current F/A-18 Super Hornet fleet and extend carrier air wing reach. The award follows Boeing's earlier win on the U.S. Air Force's F-47 next generation fighter, consolidating its role in future combat aircraft. The win strengthens the part of the Boeing thesis that leans on advanced technology and a diversified backlog across commercial jets and defense, helping offset some reliance on the loss making commercial division by anchoring long duration military work alongside programs like the F-47 and P 8A. The award also magnifies concerns analysts already highlight around execution risk, supply chain complexity and high debt, since another classified, multi billion dollar fighter program increases capital and delivery commitments.
Defense & Geopolitical Fragmentation › Defense Primes — United States ▲Demand
Aerospace & Aviation › Airframe OEMs ▲Demand
BA · Capital · Negative The award magnifies execution risk, supply chain complexity and high debt by adding another classified multi-billion-dollar fighter program with heavy capital and delivery commitments.
BA · Demand · Positive Boeing awarded the U.S. Navy's multi-billion-dollar F/A-XX sixth-generation fighter contract, adding a major defense program to its backlog.
PM discusses Airbus support for investment and aerospace technology transfer
Prime Minister and Interior Minister Anutin Charnvirakul held talks with Wouter van Wersch, Executive Vice President for International Affairs at Airbus, and Bert Porteman, a representative of Airbus Thailand, on ways to upgrade and expand cooperation between Thailand and Airbus in the aviation industry, space technology, human resource development, and clean energy. The Prime Minister affirmed the policy of promoting the aviation industry and future industries, and asked Airbus to consider broadening cooperation to cover more areas by building on the cooperation models the company has with other countries and extending them to Thailand. On clean energy, the Prime Minister proposed that Airbus promote the use of sustainable aviation fuel, or SAF, produced in Thailand, using Thai raw materials and agricultural output as part of the production chain. In addition, Airbus plans to establish a Center of Excellence in Thailand as a hub for developing knowledge, technology, and personnel, linking Airbus's global network to Thailand. The Prime Minister also proposed expanding cooperation in space technology and security, building on existing cooperation with the Geo-Informatics and Space Technology Development Agency, or GISTDA, and Thaicom Public Company Limited, as well as discussing cooperation with Thai Airways International Public Company Limited to support the goal of pushing Thailand to become the region's aviation hub.
AIR.PA · Demand · Positive Airbus is expanding cooperation with Thailand across aviation, space technology, personnel development, and clean energy, including establishing a Center of Excellence in Thailand.
THAI.BK · Demand · Positive Airbus and Thai officials discussed cooperation with Thai Airways to support Thailand's goal of becoming the region's aviation hub, implying potential business for the airline.
THCOM.BK · Demand · Positive Airbus plans to expand space technology cooperation building on existing work with GISTDA and Thaicom, signaling potential new business for the satellite operator.
Boeing engineers approve four-year contract, averting strike risk
Boeing shares rose about 4% Thursday after the company's largest white-collar union approved a new four-year contract, removing the threat of a strike that could have disrupted production and certification work at the aircraft maker. The Society of Professional Engineering Employees in Aerospace, which represents roughly 17,000 Boeing engineers, scientists, technicians and other workers, said both of its bargaining units voted to ratify the improved offer. About 68% of members in the professional unit, representing roughly 13,000 engineers and scientists, backed the agreement, while more than 53% of the technical unit, which represents about 4,000 designers, analysts and technicians, also voted in favor. The new contract provides a 10% wage increase upon ratification, followed by annual raises of 4% and the potential for an additional 2% performance-based increase. The agreement removes the immediate prospect of a strike after Boeing workers had rejected the company's initial proposal, with the current contracts set to expire October 6 and a work stoppage potentially beginning as soon as October 7. A strike could have added another complication for Boeing as it works to advance certification of its long-delayed 737 MAX 10 and 777X aircraft while increasing production and accelerating deliveries.
BA · Regulation · Positive Boeing's largest white-collar union ratified a four-year contract, averting a strike that could have disrupted production and 737 MAX 10/777X certification work.
FAA Weighs Safety Review of Boeing 737 Max Software as Max 10 Certification Delayed
The Federal Aviation Administration could convene a safety review panel as soon as Friday to examine a software problem affecting Boeing's 737 Max family, potentially leading to additional regulatory action, Bloomberg News reported, citing people familiar with the matter. The glitch can increase pilot workload during certain aborted landing procedures by shifting the autopilot to a less automated mode for pitch control. The FAA's Corrective Action Review Board is expected to determine whether the problem constitutes a flight-safety issue and whether measures such as an airworthiness directive are necessary. Boeing notified operators about the issue in August and is working on a software update, while GE Aerospace, which supplies the affected software, said it is assisting Boeing and the FAA with the review. The smaller Max 7 was certified in August with the same software, although Southwest Airlines, United Airlines and Alaska Air Group have said their fleets don't use the faulty version; United also said it is not accepting new aircraft equipped with the affected software, while Southwest said its recent and upcoming Max 8 deliveries won't contain it. The FAA has said certification of the 737 Max 10 will remain on hold until the review is completed, adding another potential obstacle for a model already years behind schedule, and Boeing has more than 1,500 orders for the Max 10, making its entry into service important to the company's production plans and future cash generation.
RBC Bearings Aerospace & Defense Revenue Jumps 36.9% to $225.4 Million
RBC Bearings is seeing persistent strength in its aerospace and defense markets, with revenues from the segment surging 36.9% in the first quarter of fiscal 2027 to $225.4 million, following year-over-year growth of 32.9% in fiscal 2026. Within the segment, commercial aerospace revenues rose 21.8% while defense market revenues climbed 64.6% in the fiscal first quarter, helped by missile and space applications orders and the July 2025 VACCO Industries buyout. The company ended the fiscal first quarter with a backlog of $2.3 billion, which it expects to act as a tailwind for the segment. RBC anticipates net sales of $505-$515 million for second-quarter fiscal 2027, a year-over-year increase of 10.9-13.1%, driven by strength across both its Aerospace & Defense and Industrial segments. Among peers, Howmet Aerospace saw defense aerospace revenues rise 11% year over year in the second quarter, constituting 15% of company revenues, while GE Aerospace's Defense & Propulsion Technologies segment revenues increased 16% year over year to $3.4 billion in second-quarter 2026.
Sogeclair Completes Sale of Airbus-Dedicated Engineering Activities to Akkodis
Sogeclair has completed the sale of its Airbus-dedicated engineering activities to Akkodis, a global leader in digital engineering and technology consulting. The transaction covers 366 employees located across France, Spain, Germany, Canada, India and the United Kingdom, while the transfer of the business in the United States and Tunisia will be completed following receipt of the required approvals. The divested business represents approximately 20% of the Group's revenue. Sogeclair said the completion marks a new milestone in its development strategy, enabling the Group to strengthen its position in high value-added engineering and manufacturing activities across the entire product lifecycle while continuing its diversification into high-potential markets such as business aviation and defence.
ALSOG.PA · Capital · Positive Sogeclair completed the divestment of its Airbus-dedicated engineering business (~20% of revenue), advancing its strategy to focus on higher value-added activities
GE Aerospace Earns Zacks Rank #2 as Earnings Estimates Rise
GE Aerospace holds a Zacks Rank #2 (Buy), with consensus earnings estimates for the current quarter, fiscal year, and next fiscal year all revised higher over the past 30 days. The company is expected to post earnings of $2.01 per share for the current quarter, a year-over-year change of +21.1%, while the Zacks Consensus Estimate has moved +0.7% over the last 30 days. For the current fiscal year, the consensus estimate of $7.91 points to a +24.2% change from the prior year and has risen +0.6% over the past month, and for the next fiscal year the $9.04 estimate indicates a +14.3% change and has increased +0.5%. Revenue forecasts call for $12.66 billion in the current quarter, up +12% year over year, with current and next fiscal year estimates of $50.56 billion and $55.85 billion, indicating +19.5% and +10.5% changes respectively. In its last reported quarter, GE posted revenues of $12.63 billion, up +24.5% year over year and a +6.52% surprise versus the Zacks Consensus Estimate of $11.86 billion, with EPS of $2.02 versus $1.66 a year ago and an EPS surprise of +8.6%.
BofA Upgrades Dassault Aviation to Buy on Rafale Order Prospects
BofA Securities upgraded Dassault Aviation to buy from neutral and raised its price target to €360 from €345, citing the French fighter maker's long order book and potential new Rafale contracts. The target implies about 27% upside from the €284 share price cited in the report, and BofA noted the stock has fallen about 20% from its year-to-date high, creating a more attractive entry point. Dassault's Rafale backlog provides about 7.5 years of production visibility at current delivery rates, with further upside possible from India and Ukraine. India's proposed order for 114 Rafales could become a key catalyst in the fourth quarter and would be the largest export order in the aircraft's history, while Ukraine has expressed interest in acquiring up to 100 Rafales, initially ordering 16 aircraft under a July 2026 agreement with France with deliveries due to begin in 2028-29. Neither opportunity has yet become a firm contract, but BofA said that if both orders are secured, Dassault's backlog could exceed 400 aircraft, potentially extending production visibility to about 15 years at 2026 production rates. BofA also raised its 2026 earnings-per-share forecast to €16.40 from €16.30 and its 2028 forecast to €22.31 from €21.42, while cutting its 2027 estimate to €19.36 from €19.67.
FORTH approves capital increase of up to 455 million baht to fund commercial aircraft repair centre
Fort Corporation Public Company Limited, or FORTH, announced that its board of directors meeting on 30 September 2026 approved a proposal to be submitted to the first extraordinary general meeting of shareholders of 2026 to consider and approve an increase in registered capital of not more than 13,565,891.50 baht, from existing registered capital of 467,687,350 baht to new registered capital of 481,253,241.50 baht, through the issuance of not more than 27,131,783 new ordinary shares with a par value of 0.50 baht per share, offered to existing shareholders in proportion to their holdings at a price of 12.90 to 16.80 baht per share, at a ratio of 34.4752 existing shares to 1 new share. The final offering price will be determined at least 2 business days before the date on which purchasers of the securities are no longer entitled to subscribe for the new shares. The company expects to receive proceeds of approximately 350.00 to 455.81 million baht from this share issuance and offering, and plans to use the funds to support investment and business expansion under its commercial aircraft repair centre project, or MRO, by 2028. The first extraordinary general meeting of shareholders of 2026 is scheduled for 11 November 2026 at 2:00 p.m. on the 7th floor of the company's office building, and the record date for shareholders entitled to attend the meeting is set for 14 October 2026.
FORTH.BK · Capital · Positive FORTH's board approved a capital increase of up to 455 million baht via new share issuance to fund its commercial aircraft repair centre (MRO) project by 2028.
United StatesIsraelSaudi ArabiaUnited Arab Emirates
Airframe OEMs▲
Trump praises Boeing 737 Max after Flydubai flight nearly plunges
US President Donald Trump praised the Boeing 737 Max after the aircraft model was involved in an attempted downing of a Flydubai plane bound for Israel's Tel Aviv. Trump said the 737 Max is strong and can withstand more stress on the airframe than it was designed for. However, Trump did not directly address the Flydubai flight incident, instead praising Boeing and Kelly Ortberg, Boeing's chief executive officer. Israeli officials said on Wednesday, September 30, that passengers and crew aboard the aircraft were able to thwart an attempt by the co-pilot to bring the plane down in an incident that occurred on Tuesday, September 29. During the incident, the plane plunged nearly 14,000 feet in less than 30 seconds before passengers and crew were able to regain control of the aircraft and land it safely in Tabuk, in northwestern Saudi Arabia.
BA · Geopolitics · Positive Trump praised the Boeing 737 Max and CEO Kelly Ortberg after the Flydubai aircraft survived an attempted downing, giving the model positive political backing.
SkyDrive Appoints Former Toyota and Airbus Executives to Leadership Roles
SkyDrive Inc. has appointed former Toyota executive Taiji Ono as executive vice president and head of global business, and former Airbus executive Gonzalo Ramos as global commercial officer. Ono, who spent nearly 17 years at Toyota Motor Corporation before serving as chief strategy officer at a data platform company, will oversee global business strategy, commercial models and sales strategy, including public-private partnerships in Japan. Ramos, who brings over 22 years of experience in commercial aviation, aircraft leasing and Advanced Air Mobility, including almost 18 years at Airbus, will lead commercial expansion in the United States, Middle East, Europe and Australia, driving aircraft sales contracts and post-delivery maintenance, repair and overhaul support. SkyDrive says it has partnered with airlines, operators, local governments and business partners across 10 countries, and that pre-orders and letters of intent for its SKYDRIVE SD-05 model total 451 aircraft. The company is pursuing type certification with the Japan Civil Aviation Bureau and the U.S. Federal Aviation Administration, with the aim of launching the aircraft into service in 2028.
Advanced Air Mobility (eVTOL) › Passenger eVTOL OEMs ▲Talent
Aerospace & Aviation › Airframe OEMs Talent
Advanced Air Mobility (eVTOL) › Piloted Western Air-Taxi OEMs Talent
スカイドライブ · Regulation · Positive SkyDrive is pursuing type certification with the Japan Civil Aviation Bureau and the U.S. FAA toward a 2028 service launch.
スカイドライブ · Demand · Positive SkyDrive reports 451 pre-orders and letters of intent for its SKYDRIVE SD-05 aircraft, a concrete product-demand signal.
Ethiopian Airlines Orders Eight Boeing 777-8 Freighters and Two 777 Freighters
Boeing and Ethiopian Airlines announced that the African carrier has ordered eight 777-8 Freighters and two 777 Freighters, making Ethiopian Airlines the first African carrier to purchase the world's newest widebody freighter. The order is Ethiopian Airlines' second for the 777X airplane family, building on its earlier purchase of eight 777-9 passenger jets that established the carrier as Africa's first 777X customer, and it doubles the airline's 777X family order book. The 777-8 Freighter will be the world's largest and most capable twin-engine freighter, with a maximum structural payload of 118 tonnes, and will be paired with the 777 Freighter to expand the carrier's Boeing freighter fleet. Ethiopian Airlines Group CEO Mesfin Tasew said the aircraft will enhance payload capacity, operational flexibility, efficiency and sustainability as cargo demand grows, while Boeing senior vice president of Commercial Sales and Marketing Brad McMullen cited the strength of the partnership and growing worldwide air cargo demand. Ethiopian Airlines currently connects more than 70 cargo markets across Africa, Asia, Europe, the Middle East and North America with a fleet of 12 777 Freighters, two 767 Freighters and four 737-800SF airplanes.
BA · Demand · Positive Ethiopian Airlines ordered eight 777-8 Freighters and two 777 Freighters, a concrete order for Boeing's aircraft.
Ethiopian Airlines · Demand · Positive Ethiopian Airlines expands its freighter fleet to meet growing cargo demand, doubling its 777X family order book.
Duffy Sees No Safety Concern From Boeing 737 MAX Software Issue
US Transportation Secretary Sean Duffy said he currently sees no safety concern from a software problem affecting some Boeing 737 MAX aircraft and that there is no need to ground the fleet. Speaking to reporters on Wednesday after an event in Washington, Duffy said authorities had learned that delays in responding to problems can have serious consequences, according to Reuters. Boeing said on Saturday that the software issue could prevent pilots on certain 737 MAX aircraft from accessing automated flight guidance during a particular landing scenario, and that it has notified operators and is working on a permanent software fix. The Federal Aviation Administration said Monday it would delay certification of Boeing's long-awaited 737 MAX 10 until the issue is resolved, and the agency plans to convene a Corrective Action Review Board to examine the matter, possibly as early as next week. The FAA has said the affected software version can increase pilot workload during a go-around, when a landing is aborted and the aircraft climbs to attempt another landing.
Citi Adds Howmet Aerospace to 90-Day Upside Catalyst Watch, Keeps $329 Target
Citi added Howmet Aerospace to a positive 90-day Catalyst Watch on Wednesday, maintaining its Buy rating and $329 price target on the aerospace supplier. The call implies 42.5% expected share-price appreciation, or a 42.7% total return including dividends, from Howmet's Sept. 29 closing price of $230.94. Lead analyst John Godyn said recent concerns weighing on the shares appear overdone and described Howmet as one of Citi's top aerospace and defense compounders. Howmet shares have fallen about 9% since Citi initiated a separate positive 30-day Catalyst Watch on Aug. 31, which has now expired, with Citi attributing the weakness to GE Aerospace's acquisition of Consolidated Precision Products, potential risks to Boeing's 737 production and delivery schedule, and rising geopolitical and fuel-related pressures on aerospace and defense stocks. Citi forecasts third-quarter EPS of $1.38 and fourth-quarter EPS of $1.44, bringing estimated 2026 EPS to $5.37, and its 2027 EPS estimate of $6.76 is above the $6.48 consensus cited in the report.
JPMorgan Names BAE, Leonardo, Babcock Top European Defence Picks for Q4 2026
JPMorgan said in a note Wednesday that European defense investors are favoring companies with long-duration order books and hard-to-replace products, while marking down those whose technology could be displaced. The European defense sector has underperformed local markets by about 6% this year on average, though with wide variation between individual stocks, analyst David Perry noted. JPMorgan rates BAE Systems, Leonardo and Babcock Overweight, saying all three have those defensive characteristics, while investors have significantly de-rated companies such as Rheinmetall, CSG and Renk on fears their technology could be displaced. JPMorgan placed MTU Aero Engines and Leonardo on Positive Catalyst Watch, ahead of MTU's capital markets day on Nov. 30 and Leonardo's industrial plan update in March 2027, and put Rheinmetall on Negative Catalyst Watch, saying it does not expect the company to cut its 2030 sales goal of 50 billion euros even though the bank's own forecast is 36.9 billion euros. Perry said the debate over technology displacement is complex and the answer will not be clear for many years, making investor events at Rheinmetall on Nov. 27 and Renk on Dec. 8 important, and added that Rolls-Royce and Safran should remain strong performers over the medium term and are core holdings.
0ONG.LSE · Capital · Positive JPMorgan rates Leonardo Overweight and places it on Positive Catalyst Watch ahead of its March 2027 industrial plan update.
BA.LSE · Capital · Positive JPMorgan names BAE Systems an Overweight top European defense pick, citing its long-duration order book and hard-to-replace products.
BAB.LSE · Capital · Positive JPMorgan rates Babcock Overweight as one of its top European defense picks for Q4 2026.
R3NK.XETRA · Competition · Negative JPMorgan says investors de-rated Renk on fears its technology could be displaced, and flags its Dec. 8 investor event as key to a complex displacement debate.
RHM.XETRA · Capital · Negative JPMorgan placed Rheinmetall on Negative Catalyst Watch, doubting it will cut its 2030 sales goal of 50 billion euros versus the bank's 36.9 billion euro forecast.
MTX.XETRA · Capital · Positive JPMorgan places MTU Aero Engines on Positive Catalyst Watch ahead of its Nov. 30 capital markets day.
GE Aerospace and Kratos Ignite GEK800 Turbofan Cruise Missile Engine
GE Aerospace and Kratos Defense successfully ignited the GEK800 turbofan cruise missile engine, a fresh data point for investors watching General Electric's defense story. The news lands against a mixed stretch for the share price: a 30 day share price return of 7.21% and a 90 day share price return of 15.22%, alongside a 1 year total shareholder return of 6.08% and a very large 5 year total shareholder return. General Electric now trades only slightly below some intrinsic value estimates while sitting well under the average analyst target, and on the narrative view its fair value sits at $307 against a last close of $317.89, a 3.5% overvalued reading. On the P/E lens the shares trade on 36.8x earnings, above both the 35.6x industry average and the same 35.6x peer group level, and above a fair ratio estimate of 34.7x. The company's reliance on Boeing's production tempo and exposure to tight aerospace supply chains remain the key risks to the wide moat narrative.
GE · Technology · Positive GE Aerospace and Kratos successfully ignited the GEK800 turbofan cruise missile engine, a technology milestone for its defense story.
KTOS · Technology · Positive Kratos Defense co-developed and successfully ignited the GEK800 turbofan cruise missile engine.
AAR Corp Posts Record Q1 Sales of $918 Million, Buys 65% of MRO Holdings for $4 Billion
AAR Corp reported record fiscal first-quarter sales of $918 million, up 24% year over year including 11% organic growth, with adjusted diluted EPS of $1.49 per share, up 38%, and adjusted EBITDA margin expanding 100 basis points to 12.7%. Alongside the results, the company agreed to acquire a 65% controlling interest in MRO Holdings at an implied enterprise value of approximately $4 billion, a 10.7 times adjusted EBITDA multiple net of tax benefit synergies. MRO Holdings is expected to generate approximately $1 billion in adjusted sales, $285 million in adjusted EBITDA at a 27% margin, and more than $200 million in adjusted operating cash flow in calendar 2026. The combined company would have roughly $4.3 billion in annual sales and nearly $700 million in adjusted EBITDA, lifting the adjusted EBITDA margin to 16% before synergies from about 12%, with a new medium-term target of 19% to 20% over the next three to four years. AAR expects approximately $75 million in run rate cost synergies within three to four years, funded by about $1 billion of AAR equity, including roughly $780 million to MRO Holdings shareholders at $135 per share and about $230 million via a PIPE, plus approximately $2.1 billion of new debt, taking net leverage to about 3.6 times at close before declining toward its 2 to 2.5 times target range.
AIR · Capital · Positive AAR posted record Q1 sales of $918M with 38% EPS growth and agreed to acquire a 65% stake in MRO Holdings, lifting EBITDA margin targets to 19-20%.
BAE Systems' AN/APX-127(V)1 IFF Transponder Wins AIMS Certification for F-16
BAE Systems' new Identification Friend or Foe AN/APX-127(V)1 Combined Interrogator Transponder has received AIMS certification from the Department of War for the U.S. Air Force's F-16 Fighting Falcon. The AIMS certification is a U.S. and NATO interoperable standard that marks the IFF solution ready for use, and the next-generation CIT will improve identification and enable enhanced decision making to distinguish between allied forces and potential threats in contested scenarios. The modernized system consolidates interrogator and transponder functions into one box for highly maneuverable aircraft, and its open-system architecture allows for software upgrades, reducing the risk and cost associated with hardware modifications. With the same form factor, it is a drop-in replacement for the AN/APX-113(V), AN/APX-125(V), and AN/APX-126(V) CITs currently operating on multiple U.S. and international platforms, and it is AIMS Mark XIIB IFF certified with Mode S and Mode 5 for secure and encrypted data exchange. Work on the AN/APX-127(V)1 CIT is performed at BAE Systems' facilities in Greenlawn, N.Y. and Austin, Texas, and the company expects to start delivering on the first 90-unit production lot this year.
Aerospace & Aviation › Avionics & Aircraft Systems ▲Technology
BA.LSE · Technology · Positive BAE's AN/APX-127(V)1 IFF transponder received AIMS certification and is set for first 90-unit production deliveries this year.
Thai Airways Board Orders CEO to the Front Lines to Fix Baggage Backlog and Flight Delays
Lavaron Saengsanit, Permanent Secretary of the Ministry of Finance and Chairman of the Board of Thai Airways International Public Company Limited, or THAI, disclosed that at the company's board meeting on September 28, an urgent directive was issued to management to resolve the problems of delayed baggage and delayed flights affecting passengers in the aftermath of the flooding. The board assigned Chai Eamsiri, the Chief Executive Officer, to skip the board meeting and instead go to the front lines to take command and oversee the resolution of problems on site at the airports directly, while reporting progress back to the board periodically. Regarding the backlog of unclaimed baggage, the meeting directed management to urgently consider bringing in external service providers for support, and to possibly coordinate with Thailand Post Company Limited to deliver bags directly to passengers. At the same time, coordination will be made with Airports of Thailand Public Company Limited, or AOT, to speed up the clearance of baggage stuck in the system. As for the shortage of ground personnel caused by the floods, the board assigned the company to coordinate requests for manpower support from military units to help perform duties temporarily, and issued a special instruction that Thai Airways provide accurate information to passengers continuously and as quickly as possible.
THAI.BK · Supply · Negative Thai Airways faces baggage backlog, flight delays, and ground personnel shortage after flooding, forcing CEO to the front lines.
AOT.BK · · Neutral AOT is only mentioned as a coordination partner to speed up baggage clearance, no direct impact stated.
Thai Airways vows to clear 5,600 backlogged bags in 72 hours, cancels flights to reset
Chai Eamsiri, Chief Executive Officer of Thai Airways International, or THAI, announced that all backlogged baggage will be cleared within 72 hours, after 100% of flights were delayed over the past two days, September 26-27, due to a labour shortage caused by flooding problems. More than 5,600 bags remain backlogged, which is considered very high, so the company decided to cancel flights to Set Zero and prevent new flights from mixing with the backlogged bags. It is also coordinating with Airports of Thailand, or AOT, to request more than 100 military personnel from the Ministry of Defence and the Royal Thai Air Force, as well as hiring two transport companies and Thailand Post, which AOT helped arrange to increase to three, to help manage the return of bags to passengers. Some passengers are being allowed to collect their bags themselves at the terminal, while others will have them delivered, with notifications to be made via the Thai Airways Facebook page. Chai said that of the more than 500 workers, divided between licensed staff and general labourers, only about 200-300 came to work today, so headquarters staff have been pulled in and absent workers called back to help, with compensation offered. He confirmed that this was not caused by a staff strike but by employees' personal circumstances, and that the problem is a frontline issue, not a policy one. This afternoon Thai Airways will set up a desk to receive damage reports and compensate passengers affected by the backlogged bags and delayed flights, possibly at a point inside Suvarnabhumi Airport's passenger terminal. Meanwhile, the cargo warehouse is heavily overfilled, so customers are being urged to collect their goods as soon as possible.
CGSI upgrades tourism sector, favors THAI over AOT, expects 24% and 60% profit growth in 2027
CGS International Securities (Thailand), or CGSI, has raised its investment weighting for Thailand's tourism sector to Overweight, citing expectations of strong profit growth continuing from the second half of 2026 through 2027, and said THAI looks more attractive than AOT on cheaper valuations. CGSI estimates THAI's net profit in 2027 will grow 24% year on year, while AOT's will grow 60% year on year. In AOT's case, most of the growth comes from a full year of benefits from the increase in the departure passenger service charge, or PSC, which the company officially announced in February 2026 and is expected to remain unchanged for at least four more years. THAI, meanwhile, benefits from lower fuel costs and fleet expansion, taking delivery of 14 Airbus A321neo aircraft and 12 Boeing 787s, lifting its fleet from 84 aircraft at the end of the second quarter of 2026 to 102 by the end of December 2026. For third-quarter 2026 results, CGSI expects AOT to post normalized profit of 4.4 billion baht, up 9% year on year and 16% quarter on quarter, even though passenger numbers fell 2% year on year. It expects THAI to post normalized profit of 2.8 billion baht, down 48% year on year but up 138% quarter on quarter, helped by a recovery as jet fuel prices fell 17%. Foreign tourist arrivals from July to September 2026 are expected to fall 5% year on year to 7.03 million from 7.43 million. CGSI nonetheless highlights that THAI's valuation looks more attractive at a 2027 price-to-earnings ratio of 6.9 times, 27% below the sector average, versus AOT at 27.6 times, 48% above the sector average, and that THAI's earnings also have more upside.
AOT.BK · Capital · Positive CGSI rates tourism Overweight and forecasts AOT 2027 profit growth of 60%, driven by the higher passenger service charge, though it prefers THAI on valuation.
THAI.BK · Capital · Positive CGSI favors THAI over AOT, citing cheaper valuation (6.9x 2027 P/E) and 24% profit growth from lower fuel costs and fleet expansion.
Boeing Reaches Tentative Four-Year Deal With Union Covering 17,000 Engineers
Boeing reached a tentative four-year labor deal with the Society of Professional Engineering Employees in Aerospace covering about 17,000 workers. The proposed agreement includes guaranteed wage increases over the contract term, according to union communications released alongside the announcement. The union said the deal, announced ahead of a strike authorization timeline, will now go to members for a ratification vote. The tentative agreement lowers the immediate risk of a work stoppage that could have disrupted aircraft certification work and deliveries, easing near-term execution risk on programs such as the 737 and 777X. The deal does not remove concerns around debt, execution issues or the 737 MAX software glitch recently reported.
BA · Regulation · Positive Boeing reached a tentative four-year labor deal with 17,000 engineers, lowering the immediate risk of a work stoppage that could have disrupted certification and deliveries.
Thai Airways apologises as nearly 100% of flights delayed, aims to restore normal operations within 72 hours
Chai Eiamsiri, Chief Executive Officer of Thai Airways, apologised to passengers after nearly 100% of flights were delayed due to severe flooding, with fewer than 3% of flights departing on time. The company decided to cut capacity by roughly 30–40% by cancelling and merging about 30 flights out of more than 110 flights per day, while transferring passengers to partner airlines. The main cause was that ground personnel and specialised skilled staff whose accommodation is in flooded areas could not travel to work, with a shortage of more than 200–300 workers out of the roughly 500 needed, leaving about 5,600 pieces of baggage stranded at Suvarnabhumi Airport. Thai Airways requested cooperation from the Ministry of Defence and the Royal Thai Air Force to deploy about 100 personnel along with vehicles to transport employees in the affected areas, and is working with Airports of Thailand, Thailand Post and three private delivery providers to speed up the return of baggage to passengers. It aims to restore operations to normal within 72 hours and has set up compensation counters for both delayed baggage and delayed flights. Thai Airways shares closed at 6.05 baht, down 0.10 baht, or 1.63%, with trading value of 447.67 million baht.
Taiwan Confirms Ongoing Talks with US on Arms Purchases After Trump-Xi Summit
Taiwan's defense minister has revealed that Taiwan is continuing discussions with the United States on arms purchases and has received assurances from Washington that its policy toward Taiwan remains unchanged, following last week's meeting between President Donald Trump and Chinese President Xi Jinping in Washington. Wellington Koo, Taiwan's defense minister, told reporters today that since the summit, the Taiwanese government has received repeated clarifications from the US side that Washington's policy toward Taiwan remains the same, and that for arms procurement programs currently underway, each project requires concrete cooperation, with no notification of any changes so far. One of the delayed programs is an order for 66 F-16V fighter jets from Lockheed Martin, placed in 2019, equipped with modern electronics, weapons, and radar to enhance the ability to counter the Chinese air force, including the J-20 stealth fighter. Taiwanese media reported that the first two F-16V jets are in Hawaii awaiting delivery to Taiwan. Koo did not disclose a delivery schedule, saying only that production has reached a stage where delivery is possible, and noted that due to the delays, related compensation measures are in place. China has consistently urged the United States to stop selling arms to Taiwan. In May, after visiting Beijing, Trump said the United States had paused consideration of a new arms package worth about 14 billion dollars, but after meeting Xi in Washington last week, Trump said only that Xi understood his position on Taiwan.
Transport Ministry Presses THAI to Clear Backlog of Baggage, Board Meeting Called Urgently
Siriwong Angkasakulkiat, Deputy Minister of Transport, disclosed that Thai Airways International Public Company Limited, or THAI, is facing a mounting backlog of passenger baggage at Suvarnabhumi Airport, along with delayed baggage. Chai Eiamsiri, Chief Executive Officer of THAI, explained that the main cause was a severe shortage of staff, after a large number of personnel were affected by the flood situation, making it impossible to manage baggage normally. Thai Airways promised to expedite the handling of the backlogged baggage for completion within today. The Ministry of Transport proposed convening an urgent meeting of the THAI board of directors to consider ways to resolve the problem and lay out further management measures. It also noted that Thai Airways is still handling baggage for alliance airlines in its network, which are governed by service level agreements, or SLAs, and therefore it may be necessary to prioritise looking after its own passengers first. Meanwhile, the Ministry of Transport, through Airports of Thailand Public Company Limited, or AOT, has coordinated with the Royal Thai Air Force and Thailand Post Company Limited to send personnel and officials to fully assist with baggage transport. For passengers who have stated their intention to have baggage delivered, officials will deliver it to the name and address specified. For passengers who have said they will come to collect it themselves, officials will sort and gather the baggage for them to pick up later. Siriwong stressed that compensation and relief measures for passengers are the direct duty and responsibility of Thai Airways, since the Ministry of Transport acts only as the regulator of prices and safety standards, while service levels are a matter of Thai Airways' own management, marketing, and customer care. If Thai Airways chooses not to look after its passengers, the impact and business damage will fall on the company itself. The Ministry of Transport also expressed concern about Thai Airways' handling of the situation, saying the government should receive better answers and cooperation, after the Ministry of Transport and related agencies had provided full assistance, including AOT arranging food for the air force personnel who came to help with operations, as well as sending vehicles and water pumps to help ease the flood situation around Thai Airways' employee housing. The minister visited the area to monitor the situation personally and saw that Thai Airways' response still reflected management and passenger responsibility issues that need improvement, especially communicating information to customers honestly and promptly.
THAI.BK · Supply · Negative Severe staff shortage after flooding caused a mounting backlog of delayed passenger baggage, forcing an urgent board meeting and compensation duties.
AOT.BK · Supply · Neutral AOT coordinated with the air force and Thailand Post to send personnel to help clear THAI's baggage backlog, a support role rather than a direct operational hit.
GE Aerospace and Kratos Complete First Ignition of GEK800 Engine
Kratos Defense & Security Solutions and GE Aerospace announced the successful first ignition of the GEK800 Serial Number 1 turbofan engine on September 21, a milestone in a program the U.S. military has designated the F143-ZZ-100. The test, conducted at Kratos' X-58 facility, achieved a 100% success rate for the development phase and keeps the affordable, high-performance propulsion system on schedule for advanced cruise missiles and uncrewed aerial systems. For Kratos, the milestone supports a Government Solutions segment that posted $379.7 million in Q2 2026 revenue, up 22.0% organically, with Turbine Technologies up 43.3% organically, a consolidated book-to-bill ratio of 1.1x and $2.084 billion in backlog, as the company ramps full-year 2026 revenue guidance to $1.750–$1.810 billion. GE Aerospace's Defense & Propulsion Technologies segment reported $3.4 billion in Q2 2026 revenue, up 16%, and raised full-year DPT operating profit expectations to $1.6–$1.7 billion. Kratos also faces cash conversion pressure, with $11.0 million in Q2 2026 operating cash outflow and $18.9 million in negative free cash flow, while GE's DPT margins face ongoing pressure from investments and inflation.
KTOS · Technology · Positive Kratos achieved first ignition of the GEK800 engine at its X-58 facility, advancing the affordable propulsion program for cruise missiles and UAVs.
KTOS · Capital · Negative Kratos faces cash conversion pressure with $11.0 million Q2 2026 operating cash outflow and $18.9 million negative free cash flow.
GE · Technology · Positive GE Aerospace and Kratos completed the first ignition of the GEK800 turbofan engine, a milestone for the F143-ZZ-100 military propulsion program.
Boeing wins $13.8M U.S. Air Force C-17 fleet support deal
Boeing has secured a $13.8 million contract from the U.S. Air Force for cargo ramp lock actuators for the C-17 fleet. The award is structured as a mix of firm-fixed-price and cost-plus-fixed-fee terms, meaning some work is reimbursed with an agreed-upon fee while other work is paid at a predetermined price. The work will be performed in Long Beach, California, and is expected to be completed by May 30, 2030. The contract includes $11.1 million in Air Force operations and maintenance funds and $2.6 million in FMS funds. The Air Force Life Cycle Management Center is the contracting activity.
AAR Set to Report Q1 Earnings Tuesday With EPS Seen at $1.29
AAR is scheduled to announce its Q1 earnings results on Tuesday, September 29th, after market close. The consensus EPS estimate is $1.29, up 19.4% year over year, and the consensus revenue estimate is $879.97M, up 18.9% year over year. Over the last 2 years, AAR has beaten EPS estimates 100% of the time and has beaten revenue estimates 88% of the time. Over the last 3 months, EPS estimates have seen 2 upward revisions and 0 downward, while revenue estimates have seen 1 upward revision and 1 downward.
Howmet Aerospace Raises Dividend 17%, Repurchases $800 Million in Shares
Howmet Aerospace has raised its quarterly dividend 17% to 14 cents per share, equivalent to 56 cents annually, as it continues returning capital to shareholders. In the first six months of 2026 the company distributed $97 million in dividends, and through July it had repurchased $800 million worth of shares year to date. Howmet exited the second quarter of 2026 with $563 million in cash equivalents, above its $450 million in short-term borrowings, and generated $1.04 billion from operating activities in the first half, up 48% year over year, while free cash flow totaled $838 million, up 75%. For 2026 the company expects free cash flow of $1.85-$1.95 billion. Among peers, GE Aerospace distributed $873 million in dividends and repurchased $4.2 billion of shares in the first half of 2026, while Parker-Hannifin paid $936 million in dividends and repurchased about $1 billion of shares in fiscal 2026. Howmet shares have gained 4.2% over the past six months against a 6.7% decline for the industry, and the Zacks Consensus Estimate for both 2026 and 2027 earnings has risen 6.2% over the past 60 days.
Ryanair Cuts Fiscal 2027 Traffic Forecast to 214 Million Passengers
Ryanair Holdings lowered its fiscal 2027 traffic forecast from 216 million to 214 million passengers, trimming its winter schedule to limit exposure to unhedged high fuel prices between November 2026 and March 2027. The carrier expects traffic to be flat year over year over that winter period and estimates the schedule reduction will cut winter losses by €70 million to €100 million. Ryanair also faces production delays at Boeing, where the MAX-10 is expected to be certified in late summer 2026 with the first 15 deliveries in spring 2027 and 300 of the fuel-efficient aircraft due by March 2034. Total operating expenses rose 11% year over year in the first quarter of fiscal 2027, with fuel and oil costs up 16% as the price of the company's 20% unhedged fuel more than doubled, while depreciation climbed 21% and maintenance, materials and repair expenses rose 30%. The Zacks Consensus Estimate for third-quarter and fourth-quarter 2026 earnings, as well as for 2026 and 2027 earnings, has been revised downward over the past 90 days, and the stock carries a Zacks Rank #4 (Sell).
RY4C.XETRA · Capital · Negative Operating expenses up 11% with fuel, depreciation and maintenance costs surging, and consensus earnings estimates revised downward
RY4C.XETRA · Supply · Negative Ryanair trims winter schedule and cuts FY2027 traffic forecast to limit exposure to high unhedged fuel costs
BA · Supply · Negative Boeing MAX-10 certification and delivery delays constrain Ryanair's fleet growth, highlighting Boeing production problems
Healey unveils £100m apprenticeship fund and £300m Rolls-Royce investment in reindustrialisation push
Chancellor John Healey has set out plans to reindustrialise Britain, announcing a £100 million fund for local mayors to boost apprenticeships, a £300 million investment by Rolls-Royce in British factories, and confirmed support for British shipbuilding. In his speech to the Labour Party conference in Liverpool, Healey said the new Local Apprenticeship Service would see teams acting like football scouts to link young people with firms, describing it as a down payment on work to tackle the almost one million young people not in employment, education or training. He also confirmed previously trailed plans for £6 billion of government contracts for British shipyards, and said Rolls-Royce would invest £300 million in factories in Derby, Bristol, Glasgow and Rotherham. Healey, who will deliver his first Budget next month, acknowledged he did not have the money available to his predecessor Gordon Brown and sought to reassure markets that fiscal discipline would be at the core of his Budget. The speech came as diesel hit a record 199.18p a litre and the Confederation of British Industry said firms across the private sector expect activity to fall in the three months to December, though CBI chief executive Rain Newton-Smith said Healey had set out a strong vision with many of the right signals.
RR.LSE · Capital · Positive Rolls-Royce will invest £300m in its Derby, Bristol, Glasgow and Rotherham factories as part of the reindustrialisation push.
TransDigm Completes $1.066 Billion Acquisition of Prince & Izant
TransDigm Group Incorporated has completed its acquisition of Prince & Izant, formerly a portfolio company of Industrial Growth Partners, for approximately $1.066 billion in cash, including certain tax benefits. The deal, first announced on July 27, 2026, was financed through cash on hand. Prince & Izant, headquartered in Cleveland, Ohio, is a global designer and manufacturer of highly engineered brazing alloys and specialty metal components, serving primarily the aerospace and defense, aeroderivative turbine, and transportation end markets, with select applications including aircraft engine fuel nozzles and rocket engines. The company spans nearly 10,000 active SKUs, derives the majority of its revenue from the aftermarket and from specialty metals including gold, silver, and platinum alloys, and employs approximately 220 people across manufacturing locations in Cleveland, Ohio; Tinley Park, Illinois; Franksville, Wisconsin; and Bay Shore, New York. Prince & Izant is expected to generate approximately $390 million in revenue for the calendar year ending December 31, 2026.
TDG · Capital · Positive TransDigm completed its $1.066B cash acquisition of Prince & Izant, an M&A event financed from cash on hand.
Prince & Izant · Capital · Positive Prince & Izant was acquired by TransDigm for ~$1.066B and is expected to generate ~$390M revenue in 2026.
Industrial Growth Partners · Capital · Positive Industrial Growth Partners sold its portfolio company Prince & Izant to TransDigm for ~$1.066B, a successful exit.
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Airframe OEMs▼
Airbus A321neo paint defect affects about 500 aircraft
Airbus and Italy's Leonardo are investigating a defect that arose at an unlisted paint company, and a quality alert has been issued affecting about 500 of Airbus's best-selling A321neo jets, according to multiple people familiar with the matter. The defect came to light when Airbus engineers stripped paint from fuselage components and found gaps in the protective primer underneath. According to the sources, engineering teams from Airbus and Leonardo are now working at TESI, a paint supplier that is a subcontractor to Leonardo, to support remediation work and to determine the cause of the problem, which has not yet been identified. Analysts say the issue relates to reinforcing rods called stringers in part of the A321neo's forward fuselage. Airbus said about 500 aircraft are affected, including 250 at various stages of production, but that there is no impact on safety. It has also not changed its delivery targets.
AIR.PA · Supply · Negative Paint defect at supplier TESI affects about 500 A321neo jets, including 250 in production, requiring remediation work.
TESI · Supply · Negative TESI, the paint supplier and Leonardo subcontractor, is where the primer defect arose and is the focus of remediation and cause investigation.
0ONG.LSE · Supply · Negative Leonardo's subcontractor TESI produced the defective primer on A321neo fuselages, and Leonardo engineering teams are involved in remediation.
GE Aerospace Ships Redesigned GE9X Engines to Boeing, Expects FAA Certification Within Months
GE Aerospace has begun shipping GE9X engines with a redesigned mid-seal to Boeing and expects FAA certification of the modified part within the next few months, CFO Rahul Ghai said at a Morgan Stanley conference, expressing confidence the durability issue will not delay the Boeing 777X's planned 2027 entry into service. Testing showed the original seal, which connects the engine's front and rear sections, lacked the durability GE expected; the company identified the root cause, completed a redesign, validated the new component internally, and incorporated it into engines now moving through production. Boeing can continue using the original seal for current certification work, including approvals required before ETOPS testing, while GE pursues separate FAA approval for the redesigned component in production aircraft, allowing regulatory work to advance in parallel. The GE9X exclusively powers the 777X, and GE previously reported an order book exceeding 950 engines, with Emirates alone having since increased its total order to more than 540 units. Boeing CEO Kelly Ortberg has separately warned that regulatory work on the 777X could extend into 2027 because of engine-certification issues, and GE has not disclosed the expense associated with testing the new seal, modifying engines or addressing units that already contain the original component.
GE · Technology · Positive GE Aerospace completed and validated a redesigned GE9X mid-seal, resolving the durability issue and expecting FAA certification within months
BA · Supply · Positive GE9X redesigned mid-seal engines shipping to Boeing and FAA certification expected within months, keeping 777X's 2027 entry into service on track
Emirates Airline · Demand · Positive Emirates increased its GE9X-powered 777X order to more than 540 units, supporting the engine's order book
Greenbriar Equity Group is close to a deal to buy aerospace and defense supplier Spectrum Control for more than $1.8 billion, according to Bloomberg, which cited people familiar with the talks. Greenbriar emerged ahead of competing industrial bidders for Spectrum Control, which is owned by private equity firm AEA Investors. An agreement could be announced as soon as this week, though negotiations could still fall apart or another buyer could emerge. Greenbriar and AEA declined to comment to Bloomberg, and Spectrum Control did not respond to a request for comment. The potential acquisition highlights continued demand for suppliers serving the aerospace, defense and space markets, and a deal above $1.8 billion would give private equity a notable win in a sector where strategic buyers and public markets have competed aggressively for assets. The transaction would follow several large aerospace and defense deals this year, including GE Aerospace's agreement this month to acquire Consolidated Precision Products for roughly $12 billion, while Arcline-backed Arxis and J.F. Lehman-backed Doncasters also went public in 2026, each raising more than $1 billion.
Aerospace & Aviation › Aerostructures & Components Capital
Defense & Geopolitical Fragmentation › Defense Electronics, EW & Sensors Capital
Defense & Geopolitical Fragmentation › Defense Industrial Base — Strategic Materials & Components Capital
AEA Investors · Capital · Positive AEA Investors, owner of Spectrum Control, is set to exit via a >$1.8B sale to Greenbriar.
Greenbriar Equity Group · Capital · Positive Greenbriar is nearing a >$1.8B acquisition of Spectrum Control, a notable private-equity win in aerospace/defense.
Spectrum Control · Capital · Positive Spectrum Control is the target of a >$1.8B buyout by Greenbriar, valuing the aerospace/defense supplier.
Spirit Airlines Wins Approval to Sell Final 27 Aircraft for $668.1 Million
Spirit Airlines secured bankruptcy court approval from Judge Sean H. Lane at the U.S. Bankruptcy Court for the Southern District of New York to sell its final 27 Airbus A320ceo aircraft for $668.1 million, the most valuable remaining property the defunct carrier has to liquidate. The larger transaction involves creditors taking ownership of aircraft that served as collateral for Spirit's debt: 23 of the planes go to Save 2026-B LLC for $567.4 million, while four Airbus A321s are sold for $100.7 million cash to FTAI Aircraft Leasing Bermuda (2026) Ltd., with that cash flowing into the bankruptcy estate. The sale is only one piece of the wind-down, which also includes 22 takeoff and landing slots at New York's LaGuardia Airport won by JetBlue at auction, an 8.3-acre Dania Beach, Florida corporate campus sold for $93.25 million to an affiliate of Boston hedge fund Hill City Capital, and flight simulators, spare engines and ground-service equipment. Google separately agreed to pay $10 million for a collection of Spirit's business data including approximately 100 million emails and 500 million Microsoft Teams chats, subject to deidentification and court approval. Proceeds are subject to the bankruptcy plan's payment priorities, with DIP lenders holding superpriority claims first, followed by administrative and professional creditors, then other secured and unsecured creditors, leaving shareholders at the bottom with no guarantee of any recovery.
