The jet engine is the most expensive and most profitable piece of an aircraft. But the real trick of this business is that the maker sells the engine itself at almost no profit — just to get it bolted onto a plane's wing, and then collect high-margin money from "parts and repairs" across the engine's 25–30-year life. This market has only a handful of players, uses some of the hardest engineering humans can do, and is right now in a golden age — alongside a big wound from one generation of engine that grounded nearly a thousand new aircraft.
S&P 500 earnings are expected to increase by +24% from the same period last year in the third quarter, the 8th straight quarter of double-digit earnings growth for the index, according to Zacks Investment Research. Earnings are expected to be above the year-earlier level for 14 of the 16 Zacks sectors, with 5 sectors expected to enjoy double-digit growth: Aerospace up +159.3%, Energy up +111.9%, Tech up +41.9%, Basic Materials up +31.2%, and Transportation up +15.1%. The Conglomerates sector is the only one expected to have lower earnings in Q3 relative to the same period last year, down 35.4%, while Consumer Staples earnings are expected to be flat. Excluding the Energy sector, Q3 earnings growth for the S&P 500 drops to +20% from +24%, and excluding the Tech sector, growth for the rest of the index drops to +14.4%. Nvidia's Q3 earnings are expected to increase +90% year-over-year on +91.2% higher revenues, while Micron's year-over-year earnings and revenue growth rates are expected to be +938% and +348.6%, respectively, and Tech sector earnings growth gets cut by slightly more than half once contributions from Nvidia and Micron are excluded. The Q3 earnings season will get the spotlight when the big banks report on October 13th, but the reporting cycle actually got underway with the September 10th quarterly releases from Oracle and Adobe, followed by homebuilder Lennar as the third S&P 500 member to report such Q3 results, with an additional six index members on deck this week including Costco, AutoZone and Darden. Total Q3 earnings for the three S&P 500 members that have reported results already are up +22.6% from the same period last year on +14.9% higher revenues, with 33.3% beating EPS estimates and 66.7% besting revenue estimates.
Honeywell CEO Calls GE's $11.75 Billion CPP Deal Positive for Aerospace
Honeywell Aerospace CEO Jim Currier called GE Aerospace's planned $11.75 billion acquisition of Consolidated Precision Products positive for the industry overall, while noting Honeywell does not directly compete with CPP because the parts it sources differ from GE's. CPP supplies roughly a quarter of GE's casting requirements, and GE expects the business to generate about $2 billion of revenue in 2027. Currier said Honeywell could bring additional outsourced capabilities back in-house through smaller, complementary acquisitions, after the company cut its 2026 organic sales-growth outlook to 4%-5% from 7%-9% and quadrupled spending on multi-sourcing and in-sourcing initiatives this year. Honeywell deployed skilled workers into supplier factories, which Currier said helped increase production 30% year over year during the preceding 30-45 days. In the second quarter, sales rose 5% to $4.52 billion, but adjusted EPS fell 32% to $1.87, with supply constraints and an unfavorable mix weighing on profitability.
Boeing CEO Says No 200-Plane China Order, Flags 737 Wing Bottleneck
Boeing CEO Kelly Ortberg tempered expectations for a large China aircraft order, clarifying that the company did not receive a roughly 200-plane order earlier this year and that Chinese officials instead indicated plans to move forward with purchases that he expects to emerge incrementally and be announced by individual airlines. Speaking at Morgan Stanley's 14th Annual Laguna Conference, Ortberg said Boeing has reached a 737 production rate of 47 aircraft per month but has yet to stabilize at that level, with wing production in Renton remaining the primary constraint even as the broader supply chain, including engines, is in good shape. Boeing expects 737 MAX 10 certification very soon, with flight testing complete and only documentation and regulatory review remaining; the MAX 10 represents roughly 30% of Boeing's 737 backlog. The 777X faces another hurdle, as Boeing awaits completion of GE Aerospace's engine mid-seal certification plan before it can begin ETOPS testing, with some testing possibly spilling into next year, though the company continues to target 2027 deliveries. Engine deliveries are also slowing Boeing's effort to raise 787 production from eight to 10 aircraft per month, with the required engine delivery performance now expected closer to year-end, and a potential SPEEA strike could effectively halt the 777X certification program and disrupt 737 production before the current contract expires Oct. 6. CFO Jay Malave reaffirmed Boeing's 2026 free cash flow forecast of $1 billion to $3 billion, with about $2 billion as the framework, but said slower-than-expected 737 and 787 production ramps through year-end make results above the midpoint less likely than previously expected.
GE Aerospace Says GE9X Durability Fix Won't Delay Boeing 777X
GE Aerospace said a durability issue found in the GE9X engine is not expected to affect the planned entry into service of Boeing's 777X aircraft next year, according to comments made Thursday at a Morgan Stanley conference. The problem centers on the engine's mid-seal, a component linking the front and rear sections of the GE9X, where testing showed the original design did not meet durability expectations. Engines fitted with a redesigned seal began shipping to Boeing during the third quarter, and Federal Aviation Administration certification is anticipated within the next few months. GE Aerospace first disclosed the potential problem in February and later said it had identified the root cause and completed a corrective design without changing the overall timeline for the GE9X program. Separately, the company said its recently agreed $11.75 billion acquisition of Consolidated Precision Products is intended to strengthen supplies of precision-cast engine components and should not be viewed as a broader shift toward vertical integration across its aerospace operations.
State Department Approves $24.3B F-35 Sale to Saudi Arabia
The State Department has approved a potential $24.3B sale of F-35 Lightning II stealth fighter jets built by Lockheed Martin to Saudi Arabia. Saudi Arabia requested 48 F-35 Lightning II Joint Strike Fighter aircraft, 49 Pratt & Whitney F135-PW-100 engines and other equipment. The proposed sale, which would require congressional approval, will strengthen Saudi Arabia's homeland defense and improve interoperability with U.S., regional and NATO forces, the State Department said, adding that it will not alter the military balance in the region or adversely impact U.S. defense readiness. The Saudi embassy in Washington said the proposed F-35 sale reflects the strength and enduring nature of the Saudi-U.S. strategic partnership and the continued advancement of defense cooperation. The approval follows other U.S. arms deals cleared with Saudi Arabia this year, including a $5B sale of bombs and guidance kits and a $1.96B sale of Advanced Precision Kill Weapon Systems.
RTX's Pratt & Whitney Invests $25 Million to Expand Poland Engine Parts Plant
RTX Corporation announced on September 4 that its Pratt & Whitney business is investing $25 million to expand its manufacturing facility in Niepołomice, Poland, a site that produces complex tubular assemblies for both military and commercial engines. The expanded facility will begin operations in 2028 and create over 120 jobs, adding to a site that already delivers precision components for engines including the F135, the Pratt & Whitney GTF, and the PW800. The move complements the $100 million investment announced in April to boost production and enhance capabilities at the company's facility in Rzeszów, Poland, and is backed by the Polish government under the Polish Investment Zone Programme, which provides certain tax exemptions. RTX ended the second quarter with a record backlog of $289 billion, up 22% year-over-year, and Poland is already the company's largest presence outside the United States with more than 9,500 employees. As of the close on September 11, RTX carried a forward P/E ratio of 27.29, above the sector median of 19.59 and that of peers including LMT, GD, and NOC.
GE Aerospace to Buy Consolidated Precision Products for $11.75 Billion
GE Aerospace agreed to acquire castings maker Consolidated Precision Products for $11.75 billion, its largest acquisition since becoming a standalone company in 2024, in a move to secure supply of the precision metal turbine-blade components that have been a persistent bottleneck across the jet engine industry. CPP is the world's third-largest maker of these parts and supplies about one-quarter of GE's casting needs, and CEO Larry Culp called the capacity "mission-critical" as the company works through a backlog stretching into the next decade. GE's backlog exceeded $210 billion after its second-quarter results, including roughly $170 billion in commercial services and more than $30 billion in defense, and the company expects the deal to generate about $200 million in net synergies and achieve double-digit return on invested capital by the fifth year. GE will fund $7 billion of the acquisition with cash and finance the remainder with new debt, and it expects to complete the acquisition in the second half of 2027, leaving time for antitrust review; CPP supplies GE's rivals alongside GE, which could raise concerns about access to critical casting capacity. GE expects demand for airfoils to increase more than 30% by 2030 from 2026 levels, and it expects CPP to make roughly $2 billion in revenue in 2027.
Howmet Raises 2026 Guidance as Defense Aerospace Revenue Climbs
Howmet Aerospace raised its 2026 guidance, now expecting revenues of $10.00-$10.10 billion and adjusted EBITDA of $3.21-$3.25 billion, on the back of solid demand in both the defense and commercial aerospace markets. In the first six months of 2026, revenues from the defense aerospace market surged 10.2% year over year, constituting 15.5% of the company's revenues, after rising 21% year over year in 2025. The growth was driven by healthy demand for engine spares, particularly related to the F-35 program, and increased orders for other legacy fighter jet spares, lifting revenues in Howmet's Engine Products segment 30.4% year over year in the first half. The fiscal 2026 Defense Appropriations Act, enacted in February 2026, included substantial funding for defense programs, which could create additional contract opportunities for Howmet. Among peers, RTX posted a record backlog of $289 billion, including $119 billion of defense projects, while GE Aerospace's Defense & Propulsion Technologies segment revenues rose 16% year over year to $3.4 billion in second-quarter 2026.
Generac Jumps on $8 Billion Amazon Backup Generator Deal
Generac shares surged 31% after the company and Amazon executed a long-term supply agreement for backup generators for Amazon's data centers, a deal worth up to $8 billion that includes initial deliveries totaling $2.4 billion in 2027 and 2028 and warrants allowing an Amazon subsidiary to buy Generac shares through 2033. CoreWeave kicked off a fresh round of fundraising that includes a $3 billion convertible bond issue and an at-the-market offering program allowing it to sell as many as 35 million shares from time to time, saying the program will provide financing flexibility and help migrate its credit profile toward investment grade. Lockheed Martin moved on news that the Pentagon and the company struck a framework agreement for a multi-year production contract for the Joint Advanced Tactical Missile, or JATM, which is still in development but close to entering production and would become the most advanced air-to-air missile in the US arsenal, a role long held by RTX's advanced medium range air-to-air missile since 1993; the new missile program is receiving a $2 billion boost in the Trump administration's proposed budget for the fiscal year starting October 1. Boeing faces hard months ahead as CEO Kelly Ortberg and the CFO laid out challenges that surprised investors, including additional testing for the 777X that will spill into next year and a more muted cash outlook.
Three Major US Airlines to Scale Back Operations Amid Soaring Fuel Costs
Three major US airlines—American Airlines, United Airlines, and Southwest Airlines—are scaling back their planned operations in response to further increases in fuel prices. Executives from the three carriers disclosed this on the 16th at a conference hosted by Morgan Stanley. American Airlines CFO Devon May said fourth-quarter fuel prices have risen by about one dollar per gallon from assumptions made in July, adding roughly one billion dollars to fourth-quarter costs, and indicated the airline will continue adjusting seat capacity. United Airlines CFO Michael Leskinen said the carrier is canceling some flights planned for December and may make further adjustments from the first quarter of next year onward. Southwest Airlines had planned to expand seat capacity by 2 to 3 percent in 2026, but has cut that growth to about half amid soaring fuel costs, and CFO Tom Doxey indicated the airline could reduce further if fuel costs remain elevated.
GE Aerospace to Buy Consolidated Precision Products for $11.75 Billion
GE Aerospace has agreed to acquire Consolidated Precision Products, a producer of cast components for jet engines and other high-stress applications, for $11.75 billion. The deal will be funded with $7 billion in cash and the balance through new debt, and is expected to close in the second half of 2027 pending regulatory approval. Honeywell Aerospace's chief executive said the planned castings acquisition could be positive for the broader aerospace supply chain, a rare vote of confidence from a rival, according to Reuters. GE shares climbed approximately 3.1% to $316.59, up from an earlier $312.42 reading, and now trade 16.74% above the $271.20 GF Value. GE generated $3 billion of free cash flow in the second quarter, putting the acquisition value at roughly 3.9 times that single quarter's cash generation, though investors still have to weigh integration risk, additional leverage and the premium already embedded in the stock.
GE Aerospace Lifts 2026 Free Cash Flow Forecast to $8.9-$9.2 Billion
GE Aerospace raised its 2026 free cash flow forecast to $8.9-$9.2 billion, up from an earlier projection of $8.0-$8.4 billion, as the jet engine maker continued heavy capital returns to shareholders. In the first half of 2026, the company repurchased $4.2 billion worth of shares and distributed $873 million in dividends, a 26.9% increase from the prior-year period, with buybacks carried out under a new $20 billion authorization approved in December 2025. In February 2026, GE Aerospace increased its quarterly dividend by 30.6% to 36 cents per share, after returning $1.45 billion in dividend payments and $7.55 billion in share repurchases in 2025. The company has previously outlined plans to raise total shareholder returns by 20% to roughly $24 billion over the 2024-2026 period through dividends and buybacks, and exited the second quarter of 2026 with $9.3 billion in cash, cash equivalents and restricted cash against $2 billion in short-term borrowings. Among peers, RTX Corporation paid $1.9 billion in dividends in the first six months of 2026 and in April 2026 raised its quarterly dividend by 7.4% to 73 cents per share, while Textron Inc. paid $4 million in dividends and repurchased $209 million of shares in the second quarter of 2026.
Airbus delivers first A320neo from new Tianjin assembly line to China Eastern
Airbus delivered the first A320neo assembled at its new plant in Tianjin, China, on September 16. The plant is a final assembly line, or FAL, for the A320 family and is Airbus's second aircraft assembly line in both China and the Asia-Pacific region. The recipient was China Eastern Airlines, which currently operates the largest Airbus fleet in China and took delivery of the A310, the first Airbus aircraft in China, in 1985. Philippe Mhun, Airbus Executive Vice President for Commercial Aircraft Programmes and Services, said the delivery underscores Airbus's long-term commitment to its partners in China and its confidence in the continued growth of China's civil aviation market. The second assembly line in China, which began operations in October 2025, will be a key driver in accelerating the global production rate of the A320 family toward the target of 75 aircraft per month, while adding flexibility and capacity to meet strong market demand.
RTX Names Jill Albertelli President of Pratt & Whitney as Shane Eddy Retires
RTX appointed Jill Albertelli as president of its Pratt & Whitney business, effective January 1. Albertelli will report to RTX Chairman and CEO Chris Calio and succeeds Shane Eddy, who plans to retire after more than 40 years with the company. Eddy will remain through March 2027 as a special adviser to assist with the transition. Albertelli most recently led Pratt & Whitney's Military Engines division, where the company retained its position as the sole-source propulsion provider for the F-35 fighter jet, improved delivery and quality performance for the F135 engine and expanded its military-engine maintenance capacity. Eddy became president in 2022 and oversaw Pratt & Whitney's continuing transformation, including production and maintenance expansion for its Geared Turbofan and F135 engine programs.
Boeing Nears Deal to Sell 150 737 Max Jets to Turkish Airlines
Boeing is nearing an agreement to sell 150 737 Max jets to Turkish Airlines, part of a broader 225-aircraft Boeing order announced after Turkish President Tayyip Erdogan met U.S. President Donald Trump last year, Reuters reported Tuesday, citing people familiar with the negotiations. The Max portion of that larger agreement could be finalized as soon as next week. The order had been delayed by a dispute over engine maintenance, with Turkish Airlines threatening to switch to Airbus amid disagreements with engine manufacturer CFM International over maintenance costs, spare-parts prices and long-term repair risks. CFM is jointly owned by GE Aerospace and Safran. The carrier also sought a leading role in CFM's maintenance network, which would give it faster access to repair technology for engines used on the 737 Max, though it remains unclear whether that request will be included in the final agreement. A completed order would preserve one of the major Boeing agreements announced by the White House last year, and Turkish media have reported that Trump and Erdogan may meet during United Nations gatherings in New York next week.
RTX unit Pratt & Whitney signed a new production licensing agreement with Hermeus covering the F100-PW-229 fighter engine, and separately completed the F135 Engine Core Upgrade Risk Reduction Design Review for the engine that powers the F-35. The Hermeus accord allows Hermeus to manufacture the F100-PW-229, an engine widely used across U.S. military fighter aircraft fleets, giving Pratt & Whitney another qualified source for one of its most widely fielded fighter engines and supporting supply resilience and throughput. RTX, a US-based aerospace and defense group with a market value of about $266.4b, supplies engines, systems, and services to military, commercial, and government customers. The F135 Engine Core Upgrade review and the F100 production license both speak to RTX's push into technology-heavy defense work while managing engine-related risks. The key marker to watch is whether the F135 Engine Core Upgrade shifts from design milestones into funded production and retrofit orders across the existing fleet, with clear timing and volumes.
RTX CEO Calio Sees Defense and Aerospace Demand Driving Cash-Flow Growth
RTX Chairman and Chief Executive Chris Calio said strong demand for air travel and rising global defense spending should support the aerospace and defense company's growth for years, speaking Tuesday with Morgan Stanley analyst Christine Liwag at the firm's 14th Annual Laguna Conference. Calio said RTX has a backlog of about $289 billion, a figure that does not include five framework agreements covering major munitions programs or a recently awarded seven-year, $23 billion Tomahawk contract, and that volumes under the five agreements could rise by two to four times. About 48% of Raytheon's backlog is international, up four percentage points from a year earlier, and sensors and effectors account for about 70% of the unit's sales, with the Coyote counter-drone system having recorded more than 600 drone defeats in operational settings. On the commercial side, RTX expects to deliver a record number of geared turbofan engines this year, and GTF maintenance output rose 40% from a year earlier in the second quarter, helping reduce aircraft-on-ground levels by 25% since the end of 2025. RTX continues to target a medium-term operating margin of 19% to 20% at Collins Aerospace and expects 2026 free cash flow of about $8.6 billion at the midpoint of its forecast, with Calio describing the dividend as sacrosanct.
ATI Shares Climb 64% YTD on Record Defense Sales and Raised 2026 Outlook
ATI Inc. shares have rallied 64% year to date, outpacing both the Zacks Aerospace - Defense Equipment industry's 6% decline and the S&P 500's roughly 11.4% increase over the same period. The company's second-quarter 2026 jet-engine revenue rose 13% year over year, while defense sales climbed 36% to a record $162 million, prompting ATI to raise its full-year defense growth outlook to the high teens. A record $4.4 billion backlog, up 18% year over year and 7% sequentially, underpins future sales visibility. Second-quarter adjusted EBITDA jumped 37% to $284.4 million and the adjusted EBITDA margin expanded 440 basis points to 22.6%, supported by pricing, favorable product mix, higher volumes and productivity initiatives. ATI also raised its 2026 adjusted EBITDA outlook to $1.135-$1.185 billion and adjusted free cash flow guidance to $550-$600 million, and it carries a Zacks Rank #1 (Strong Buy).
Berkshire's Precision Castparts, Buffett's $37B Mistake, Now an AI Power Play
Precision Castparts, the aerospace parts maker Berkshire Hathaway bought in 2016 for roughly $37.2 billion and later wrote down by about $11 billion, has quietly become a supplier to the AI power build-out, according to an analysis published by TheStreet. The business generated $2.4 billion of net cash from operating activities in 2025, against $1.7 billion in 2015, the last full year before Berkshire owned it, per Berkshire's annual report. Precision Castparts makes airfoil castings for both jet engines and industrial gas turbines, and castings remain one of the most stubborn chokepoints in engine production. Gas turbine backlog and slot reservations grew from 100 to 116 gigawatts in a single quarter, with at least 125 gigawatts expected under contract by year-end, according to GE Vernova, and data center customers account for about 20% of that contracted volume, according to POWER magazine. GE Aerospace just paid $11.75 billion for Consolidated Precision Products, a smaller castings maker, and using that multiple Precision Castparts could be worth around $100 billion, or nearly three times what Berkshire paid, according to Barron's.
Boeing Delivers 51 Jets in August as Stock Tops $200
Boeing delivered 51 aircraft in August, a 10.5% drop from a year earlier, yet its shares climbed back above $200 as investors focused on the company's broader turnaround. The planemaker's year-to-date deliveries are its best since 2018, and it posted $24.5 billion in second-quarter revenue, up 8% from the prior year, while adjusted free cash flow swung to $631 million from negative $200 million a year earlier. Boeing's backlog stands at $715 billion, with more than 6,200 commercial aircraft in the pipeline, and CEO Kelly Ortberg has stressed that the manufacturer is rebuilding trust among customers, regulators, and suppliers. The stock remains down more than 5% year to date, and the company still faces risks, including the need to deliver aircraft on time and keep capital expenditures in check.
Willis Lease Finance Q2 Operating Income Rises 20.2% as Net Income Falls 51.2%
Willis Lease Finance Corporation reported second-quarter results on August 4 that showed operating income climbing 20.2% to $34.0 million while net income attributable to common shareholders fell 51.2% to $28.7 million, or $1.31 per diluted share, down from $2.81 a year earlier. Lease rent revenue rose 6.7% to $77.1 million in the quarter and 10.4% to $154.5 million over the first six months of 2026, and the company booked a $32.0 million gain on the sale of leased equipment after selling 21 engines and other parts and equipment, up 16.2%. Assets under management, which combines the company's on-balance-sheet fleet with its Willis Aviation Capital business, grew 21% year over year to $4.4 billion, and management and advisory fees jumped 113.4% to $5.5 million in the quarter and 194.9% to $13.4 million over six months, helped by new fund partnerships with Liberty Mutual Investments and Blackstone Credit & Insurance. Total revenue slipped 0.8% to $194.0 million as spare parts and equipment sales fell 30.2% to $21.2 million and interest revenue dropped 67.6%, while the prior-year quarter included a $43.0 million gain from the sale of the BAML business and the company recognized a $5.4 million loss on debt extinguishment in the quarter and $12.4 million over six months. Debt obligations fell from $2.70 billion to $2.32 billion and the engine count in the lease portfolio dropped from 363 to 334, even as hedge fund ownership more than doubled from 11 funds to 27 and short interest stood at 22.05% of float.
BofA Warns Bombardier U.S. Sales Ban Would Hit Largest Market
A potential ban on Bombardier aircraft sales in the United States could hit the Canadian jet maker's largest market and disrupt an aerospace supply chain spanning thousands of U.S. companies, BofA analysts said. The issue follows President Donald Trump's statement that Bombardier should no longer sell aircraft in the U.S., where its jets are certified by the Federal Aviation Administration and most aerospace goods produced in Canada and Mexico are exempt from U.S. tariffs. The U.S. accounts for about 45% of the global business-jet market and is Bombardier's largest individual market, with the company delivering roughly 80 to 100 aircraft there annually out of total deliveries of around 155, while its 2026 guidance calls for more than 157 aircraft. A halt to U.S. sales could also affect American suppliers, as Bombardier's supply chain includes roughly 2,800 U.S. companies across 47 states and generates about $2.5 billion in annual U.S. purchases. GE Aerospace supplies engines for Bombardier's Global 7500 and 8000 aircraft, Honeywell powers the Challenger 300, 350 and 3500 family, and RTX's Collins Aerospace supplies avionics across the Global and Challenger ranges. Trade tensions could also affect U.S. defense contractors if Canada shifts future procurement toward European or Asian suppliers, with programs potentially exposed including Canada's planned purchase of 88 Lockheed Martin F-35A fighters, which carries an acquisition budget of about C$27.7 billion, of which only 16 are firmly ordered and Ottawa has considered Saab's Gripen as a possible partial alternative. Canada also has commitments involving Boeing's P-8A Poseidon and General Atomics' MQ-9B SkyGuardian drones, and while a complete cancellation of Canada's outstanding U.S. defense contracts is considered unrealistic, future purchases could gradually shift toward other suppliers if trade relations deteriorate.
GE Aerospace to Acquire Consolidated Precision Products for $12 Billion
GE Aerospace has agreed to acquire Consolidated Precision Products, one of the world's largest precision castings providers and a major GE supplier, for around $12 billion, its largest acquisition since becoming a standalone publicly traded company. The deal would give GE greater control over a critical part of its engine supply chain, where precision castings are a major pressure point, and could help it meet demand already sitting in its backlog of more than $210 billion, including over $170 billion in commercial services. About 70% of CPP's revenue comes from commercial and defense engines, and GE expects CPP to generate around $2 billion in revenue in 2027. GE values CPP at about 26 times expected 2027 EBITDA before net synergies, and will fund the purchase with a mix of cash on hand and debt, expecting it to be accretive to adjusted earnings and free cash flow in the first year excluding certain items. The investment case hinges on whether CPP can raise factory yields and production efficiency enough to justify the premium, since integration problems, additional capital requirements, and slower productivity gains could leave GE carrying more debt without sufficient cash flow.
GE Aerospace to Buy Consolidated Precision Products for $11.75 Billion
GE Aerospace said Tuesday it agreed to acquire Consolidated Precision Products for $11.75 billion, expanding its control over the supply of specialized castings used in commercial aircraft engines, military equipment and industrial gas turbines. The deal headlines a busy week of M&A across sectors. Copart agreed to acquire ACV Auctions for $10.50 a share in cash, an implied equity value of about $1.9 billion, while Analog Devices will acquire Alif Semiconductor in an all-cash transaction for $1.35 billion. Bending Spoons agreed to acquire collaborative-workspace company Miro at an enterprise value of $1.355 billion in an all-cash deal expected to close in the fourth quarter of 2026. Tamarack Valley Energy agreed to acquire Headwater Exploration in an all-stock deal valued at C$10B, about US$7.25B, creating the largest publicly traded oil producer focused on Alberta's Clearwater formation, and EverBank Financial agreed to acquire Pacific Northwest bank WaFd in a $3.9B reverse merger creating a regional bank with about $75B in assets. Meta Platforms purchased Swedish AI startup Stilla.ai, Apple acquired Sonera Magnetics in a deal disclosed by the European Commission, Grab Holdings is said to be in talks for a majority stake in Atome Financial, and ARC Group Acquisition I agreed to acquire Malaysian licensed financing company Firstborn Top Capital.
Aerospace parts M&A accelerates, 154 deals in January-August, closing in on record annual total
Mergers and acquisitions are accelerating across the aerospace supply chain, with 154 publicly announced commercial aerospace-related M&A deals in January-August of this year, closing in on the record annual total of 159 set in 2019. According to Janes Capital Partners, an investment bank specializing in the aerospace and defense sector, the 154 deals had a total value of 14 billion dollars, compared with 157 deals worth a total of 37.5 billion dollars in all of last year. Acquirers are actively snapping up suppliers with skilled workers, advanced manufacturing technology and production capacity. GE Aerospace announced this week that it will acquire castings maker Consolidated Precision Products for 12 billion dollars. In May, Parker Hannifin agreed to acquire the aerospace division of Circor, which makes actuation systems and landing gear systems, from private equity giant KKR for 2.6 billion dollars. Behind the trend is the fact that Boeing's and Airbus's production plans have become clearer, giving buyers confidence in long-term demand prospects. Boeing has stabilized production of its flagship 737 MAX, and Airbus aims to deliver 870 aircraft this year, which would surpass its record 863 deliveries in 2019.
GE Aerospace Defense Segment Revenue Rises 16% to $3.4 Billion
GE Aerospace's Defense & Propulsion Technologies segment grew revenue 16% year over year to $3.4 billion in the second quarter of 2026, with the Defense & Systems business up 11.7% to $2.2 billion and Propulsion & Additive Technologies up 23.4% to $1.2 billion. Recent contract wins include a Republic of Korea Navy deal for 12 LM2500+G4 marine gas turbine engines for its KDDX naval destroyer project, a Defense Innovation Unit contract for a hypersonic test bed under the HyCAT project, and a Turkish Aerospace Industries contract to continue integrating the F404 engine into Türkiye's Hurjet jet trainer. Segment orders rose 12% year over year in the quarter, operating profit grew 18% to $475 million, and the company exited the quarter with a total backlog of $210 billion. For 2026, GE expects Defense & Propulsion Technologies revenue to increase in the low-double-digit range. GE also recently agreed to acquire Consolidated Precision Products from Warburg Pincus and Berkshire Partners for about $11.75 billion, using $7 billion in cash and new debt for the remaining consideration.
GE Aerospace signs preliminary deal to explore Polish FA-50 engine maintenance hub
GE Aerospace signed a preliminary agreement with Poland's Military Aviation Works to explore establishing domestic maintenance and repair capabilities for the engines powering the Polish Air Force's fleet of KAI FA-50 fighter jets. The memorandum of understanding covers potential maintenance, repair and overhaul services, including depot-level maintenance, for the F404-GE-102 engine, with GE Aerospace and Military Aviation Works, known locally as WZL-2, assessing the equipment, facilities and other requirements needed to service the engines in Poland. The Polish Air Force ordered 48 FA-50 light combat aircraft in 2022, with the first 12 jets delivered in 2023 in the FA-50GF Gap Filler configuration and an additional 36 expected in the more advanced FA-50PL configuration; the proposed arrangement would cover the engines for all 48 aircraft, along with spare engines. GE Aerospace said establishing local support would improve aircraft readiness and availability for the Polish military, while WZL-2 described domestic maintenance capacity as a way to strengthen Poland's operational independence and reduce reliance on overseas service providers. GE Aerospace has delivered more than 4,000 F404 engines, which have accumulated over 13 million flight hours, with about 300 of the engines powering the T-50, TA-50 and FA-50 aircraft produced by Korea Aerospace Industries. The memorandum is exploratory, and GE Aerospace did not disclose potential revenue, investment requirements or a timetable for reaching a definitive agreement.
RTX Expands GTF Aftermarket Network to 21 Facilities as PW1100G-JM Output Jumps 26%
RTX Corporation is expanding its commercial aerospace aftermarket opportunity as Pratt & Whitney increases support capabilities for its Geared Turbofan engine family, with the GTF aftermarket network reaching 21 facilities worldwide in 2025 and PW1100G-JM shop-visit output rising approximately 26% year over year. The GTF family powers more than 2,600 aircraft operated by more than 90 operators across the Airbus A320neo family, Airbus A220 and Embraer E-Jets E2 platforms, creating recurring maintenance, repair and overhaul demand. In 2025, the GTF Advantage engine received certification for the Airbus A320neo family, designed to deliver higher takeoff thrust while reducing fuel consumption versus the current GTF engine. Pratt & Whitney generated $32.9 billion in sales in 2025, up from $28.1 billion a year earlier, while operating profit increased to $2.6 billion from $2 billion. The Zacks Consensus Estimate points to RTX earnings per share growth of 14.79% in 2026 and 7.60% in 2027, and the stock carries a Zacks Rank #2 (Buy).
GE Aerospace's $12 Billion Acquisition to Boost Stock, Cramer Says
Jim Cramer said GE Aerospace's nearly $12 billion acquisition of Consolidated Precision Products, a specialty castings supplier, will send the stock up because it strengthens the company's defense business. The deal, reported by CNBC, involves buying the supplier from private equity firms Warburg and Berkshire Partners. GE's Defense & Propulsion Technologies segment grew revenue 16% to $3.443 billion in Q2 2026, and the company raised its full-year operating profit outlook for that segment to $1.6 billion to $1.7 billion. GE Aerospace closed at $334.91, up 21.94% over the past year but down 9.5% over the past month, offering a better entry point for new investors. The company's backlog exceeds $210 billion, with about $170 billion in commercial services, and the acquisition aims to address supply chain bottlenecks in jet engine castings.
Avianca Secures First-of-Its-Kind ABGF Financing for Engine MRO in Brazil
Avianca, part of Abra Group, has secured a first-of-its-kind financing agreement with the Brazilian Agency for the Management of Guarantee Funds and Guarantees (ABGF) to support maintenance, repair and overhaul (MRO) services for its CFM56 engines at GE Aerospace's Celma MRO shop in Brazil. The financing, arranged through Citibank and backed by ABGF's Export Credit Insurance, includes up to US$300 million and marks the first time a non-Brazilian airline has obtained such financing for aircraft engine maintenance services. The agreement reinforces Brazil's position as a regional hub for specialized aerospace services, with GE Aerospace's Celma facility serving as its main engine overhaul operation in Latin America, handling nearly 25% of the company's internal engine maintenance work worldwide. Executives from Avianca, ABGF, and GE Aerospace hailed the deal as a boost to fleet reliability, Brazilian high-technology exports, and regional aerospace value chains.
United Airlines Unveils Largest International Expansion with 10 New Cities
United Airlines announced its largest international network expansion in history, adding 10 new international cities and three new routes across Europe and Asia, alongside the launch of its newest aircraft, the 'Born to Explore' A321XLR. The new destinations, set to begin as early as March 2027, include San Francisco to Okinawa, Washington D.C. to Toulouse, and several routes from Newark to European cities such as Luxembourg, Ljubljana, and Ibiza. Additionally, United will introduce new daily service from Los Angeles to Osaka, three weekly flights from Washington D.C. to Milan, and daily nonstop service from Denver to Paris, with specific start dates in 2027. The airline also plans to resume San Francisco to Tel Aviv service on March 28 and relaunch summer 2027 routes to Split, Bari, Glasgow, and Santiago de Compostela. The A321XLR features enhanced amenities including a new United Polaris suite with privacy doors, free Starlink Wi-Fi for MileagePlus members, and 32 premium seats, offering 16 more than the Boeing 757-200. Since 2017, United has added 58 international destinations, now serving over 160 worldwide.
Airbus sets up Bangkok as Asia headquarters for Skywise
Airbus is set to elevate Thailand as a key digital business base by establishing Bangkok as the regional headquarters for Skywise, its digital unit, covering ASEAN, China, India, Japan, and South Korea. It will also use Thailand as the sole software testing base for customers worldwide. Mr. Narit Therdsteerakul, Secretary-General of the Board of Investment (BOI), revealed after discussions with Mr. Bert Porteman, President of Airbus Thailand, that Airbus currently has over 200 personnel in Thailand, more than triple the number since 2022, with 85 percent being Thai nationals. The company plans to hire over 40 more within this year. Airbus has been operating in Thailand for over 40 years, with more than 150 commercial aircraft and nearly 80 helicopters in the country, serving key customers such as Thai Airways, Bangkok Airways, Thai AirAsia, and Thai Vietjet. Additionally, Airbus collaborates with GISTDA on developing THEOS-1 and THEOS-2 satellites, with Thai Aviation Industries (TAI) on aircraft maintenance, and with the CP Group on sustainable aviation fuel (SAF) development. Airbus sees Thailand's potential as a leader in SAF production due to its strong agricultural waste materials and ethanol industry. Meanwhile, Airbus has about 80 Tier 1-3 suppliers in Thailand and is ready to support MRO personnel development in partnership with leading Thai universities.
Morning briefing: Inno Laser first-half net profit up 314.55%, MSCI China Index adjustment effective today
Today, the MSCI China Index adjustment takes effect after market close, with 33 new constituents added, including 31 A-shares such as Tongguan Copper Foil, Fenghua Advanced Technology, Huafeng Test & Control, Dingtai High-Tech, and KINGSEMI. Meanwhile, Inno Laser released its half-year report, with first-half operating revenue of 259 million yuan, up 19.02% year on year, and net profit attributable to the parent of 35.1507 million yuan, up 314.55% year on year. In addition, ChangXin Memory Technologies announced that its self-developed LPDDR6 memory has entered mass production and is first featured in the Xiaomi 18 Fold flagship foldable phone, marking the world's first commercial deployment of LPDDR6 products and breaking the monopoly of overseas manufacturers. China State Shipbuilding Corporation's wholly owned subsidiary Shanghai Waigaoqiao Shipbuilding, together with China Shipbuilding Trading, signed a contract with COSCO Shipping Assets for the construction of 12 21,700-TEU LNG dual-fuel container ships, with a total value of 2.688 billion US dollars, with delivery expected between 2028 and 2030. Shengyi Electronics' wholly owned subsidiary Ji'an Shengyi Electronics plans to invest 2.257 billion yuan to build a high-speed interconnect circuit board project, with a designed capacity of 445,900 square meters per year.
United Airlines A321XLR Expansion Targets European Growth
United Airlines Holdings, Inc. expects to receive enough Airbus A321XLR aircraft to support its European expansion in summer 2027, planning to use the long-range single-aisle jets on five new European routes, including Luxembourg, Ibiza, and Toulouse, as part of its largest international expansion to date covering 10 new cities across Europe and Asia. The A321XLR allows United to serve smaller international markets that may not justify larger widebody aircraft, with international service beginning December 1, 2026, from Washington Dulles to Amsterdam and Dublin, while gradually replacing its aging Boeing 757 fleet. European travel demand remains "incredibly strong," with the post-Labor Day slowdown becoming less pronounced, and eight of the 10 new routes will be exclusive among U.S. carriers, potentially giving United a competitive advantage. CEO Scott Kirby expects fares to rise gradually in the first half of 2027, and Reuters reported U.S. airline fares up 25.5% year over year in July, though still below pre-pandemic levels after inflation. Risks include aircraft-delivery delays, potential capacity growth outpacing demand, seasonal demand fluctuations, and fuel price volatility, but the overall outlook is bullish for United's international growth and fleet modernization.
GE Aerospace Leads LongRun Equity Strategy's Q2 Performance
Rothschild & Co Asset Management's LongRun Equity Strategy highlighted GE Aerospace as a leading contributor to its second-quarter 2026 performance, citing outstanding results across all business lines. The strategy returned 7.6% in EUR unhedged terms, while its benchmark gained 15.8%. GE Aerospace, which designs and produces commercial and defense aircraft engines, closed at $342.73 per share on August 27, 2026, with a market capitalization of $355.60 billion. The stock posted a one-month return of -4.82% but gained 24.54% over the past 52 weeks. The fund noted strong growth in Commercial Engines & Services and a book-to-bill ratio exceeding 2x in the Defense business. GE Aerospace ranked 26th on Insider Monkey's list of 40 most popular stocks among hedge funds, with 113 hedge fund portfolios holding the stock at the end of the second quarter, down from 119 in the previous quarter.
GE Aerospace Raises 2026 Profit Outlook Despite Margin Dip
GE Aerospace reported a second-quarter 2026 operating profit of $2.75 billion, up 18% year over year, but its operating margin fell 130 basis points to 21.7% due to growth investments and cost inflation. Costs of sales surged 26.7% to $8.7 billion, while R&D expenses rose 28.1% to $460 million. Despite these pressures, the company raised its full-year 2026 operating profit guidance to $10.55-$10.75 billion, up from a prior forecast of $9.85-$10.25 billion, implying 17% growth at the midpoint. Among peers, RTX Corporation's adjusted segment margin expanded 40 basis points to 12.4%, while Textron's net income margin slipped 10 basis points to 6.5%. GE shares have gained 10.5% in the past three months, and the Zacks Consensus Estimate for its earnings has risen for both 2026 and 2027.
Ekanit draws NZAero to set up aircraft manufacturing and repair plant in EEC
Mr. Ekanit Nitithanprapas, Deputy Prime Minister and Minister of Finance, revealed that during the Prime Minister's delegation visit to New Zealand, he held talks inviting NZAero, a leading New Zealand manufacturer of small aircraft and aviation, to invest in advanced aviation technology and aircraft repair business in Thailand. Thailand already has plans to invest in an aircraft repair centre, or MRO, in the Eastern Economic Corridor area, and the government is ready to facilitate through Fast Track channels to unlock obstacles for investors. Mr. Ekanit said Thailand has been a long-standing customer of NZAero and invited the company to invest in setting up a manufacturing plant and repair centre in Thailand, as there is already an MRO project in the EEC area. In addition, the Prime Minister said the Royal Thai Air Force will be asked to consider purchasing additional training aircraft from NZAero for further pilot training missions. NZAero is a leader in commercial aircraft production in New Zealand with a history of more than 70 years and has close ties with the Royal Thai Air Force, especially the CT4 trainer, known by the code name The Chicken, which has been part of Thai aviation for 54 years and has produced more than 3,500 pilots since 1973. The company has delivered around 70 aircraft to Thailand.
CAAT reports seven-month passenger traffic surpasses 85 million
The Civil Aviation Authority of Thailand has revealed that in the first seven months of 2026, Thailand recorded total air passenger traffic of 85.16 million, an increase of 1.48 percent from the same period last year. Domestic passengers numbered 39.26 million, up 1.64 percent, while international passengers totalled 45.91 million, up 1.34 percent. Meanwhile, Thailand-Europe routes saw 16,998 flights, a jump of 9.02 percent, as passengers and airlines shifted to direct flights instead of connecting through the Middle East to avoid geopolitical risks. The Department of Airports reported that in 2025, airports under its responsibility served 14,230,036 passengers, and six regional airports, namely Surat Thani, Ubon Ratchathani, Khon Kaen, Nakhon Si Thammarat, Udon Thani, and Krabi, handled an average of 2,500 to 5,000 passengers per day. CAAT has also laid out a strategy under the concept of small airports with standards that are not small, and the Department of Airports announced a 50 percent reduction in landing and aircraft parking fees from 10 August 2026 to 9 August 2027 to encourage airlines to open new routes to secondary cities.
Forum Markets Targets AI Compute and Aircraft Engines for Cash Flow Growth
Forum Markets outlined a strategy to acquire cash-generating real-world assets, with aircraft engines currently its largest deployment area and an AI compute project expected to launch late in the fourth quarter and provide a significant portion of the company's 2026 revenue outlook. The company has acquired five CFM56 engines under rental contracts with major U.S. airlines, and management targets $18 million to $22 million in 2026 revenue, $100 million to $175 million in year-end assets under management, and cash-flow positivity in early 2027. Forum also detailed partnerships in modular-home financing with Zippy and auto credit with Karus, while retaining tokenization as a longer-term option to broaden investor access.
Pentagon procurement surge to benefit major defense contractors
The Pentagon is pushing defense contractors to rapidly scale production of missile interceptors, munitions, and drones following significant inventory depletion, creating a broad procurement surge across the U.S. defense industrial base. Deputy Defense Secretary Steve Feinberg gave industry leaders 21 days to submit proposals for faster deliveries, while President Donald Trump has pressed contractors to direct more capital toward production capacity rather than buybacks and dividends. Within the roughly $1.5 trillion defense budget request, autonomous vehicles and drone defense at $122 billion and missiles and missile defense at $123.7 billion represent the two largest growth areas. Lockheed Martin and Northrop Grumman are the dominant large contractors with direct interceptor and drone program exposure, while Kratos Defense & Security Solutions and AeroVironment offer more focused drone and counter-drone exposure. Lockheed Martin posted $65 billion in new orders in its most recent quarter, pushing its backlog to a record $230.4 billion, and Boeing and RTX reached framework agreements with the Pentagon to boost production of SM-3 Block IIA and Block IB interceptor components.