These days a pilot barely "pulls a control" wired straight to the wing anymore. They nudge a joystick, and it's the flight computer that decides how to move the wings and tail. This is the world of avionics and aircraft systems — the brain, nerves, and muscles of the whole aircraft. It's the most expensive part per kilogram on the plane, walled off by safety certification that takes years and tens of millions of dollars, and it's making aircraft more "electric" with every new model. This lesson walks through why just a handful of companies control the systems that keep the world's aircraft flying.
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.
VPT Launches FLX Series Scalable DC-DC Converter Power Solution
VPT, Inc., a HEICO company, announced the launch of the FLX Series, a configurable DC-DC converter power solution for mission-critical military, avionics, and space applications. The FLX Series integrates VPT's proven DC-DC converters and EMI filters into a rugged, scalable housing, supporting standard 28 V, 50 V, and 270 V bus voltages and delivering 1 W to 5,000 W of output power with efficiencies up to 90%. Each unit is configurable with multiple outputs, allowing engineers to consolidate multiple converter modules into a single qualified assembly, and units operate continuously from -55°C to as high as +110°C with no power derating. For space applications, radiation capabilities range from radiation tolerant at 30 krad(Si) / 42 MeV to radiation hardened at 100 krad(Si) / 85 MeV, depending on the selected converter model series. The FLX Series is available now, and configurations meet MIL-STD-461, MIL-STD-704, MIL-STD-1275, and DO-160.
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.
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.
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.
Textron Aviation Offers Starlink for Hawker 700, 800, 900
Textron Aviation Inc., a Textron Inc. company, announced that Starlink high-speed internet is now available for Hawker 700, 800, and 900 series aircraft, following the FAA's issuance of AeroMech's Supplemental Type Certificate. The STC includes the Starlink Aviation Performance Kit, which uses Starlink's Low Earth Orbit satellites to provide reliable connectivity over land, water, and remote areas. Hawker operators can schedule installation at North American Textron Aviation Service Centers and select international service centers. The system supports streaming, video calls, and gaming with download speeds up to 1 Gbps, upload speeds up to 100 Mbps, and latency as low as 20 ms. Brad White, senior vice president of Customer Support, emphasized the company's commitment to supporting the Hawker fleet through this upgrade.
BOI draws Airbus to make Thailand Asia's aviation digital hub
The Board of Investment (BOI) revealed the outcome of discussions with Airbus, which is set to elevate Thailand as the region's digital and aviation engineering business base, with Bangkok serving as the headquarters of Skywise to oversee operations across Asia and as the sole software testing base for customers worldwide. Mr. Narit Therdsteerasukdi, Secretary-General of the Board of Investment (BOI), disclosed after discussions with Mr. Bert Porteman, President of Airbus Thailand, that Airbus plans to use Thailand as the regional office for Skywise, covering the Asian market, and as a base to support the development of aviation systems with digital technology. Currently, there are over 200 personnel in Thailand, more than triple the number since 2022, with approximately 85% being Thai nationals. Airbus is also preparing to hire over 40 additional personnel this year. Airbus is in the process of expanding the Skywise software testing team in Thailand, with plans to use Thailand as the sole testing base for software serving customers worldwide, and to make Bangkok the headquarters of Skywise for the Asian region, covering ASEAN, China, India, Japan, and South Korea. Additionally, both parties discussed extending the automotive parts and high-precision parts industry into the aircraft supply chain. Airbus estimates that the demand for new aircraft will increase by more than 20,000 units over the next 20 years, while Airbus has a backlog of over 9,000 aircraft orders and already has about 80 suppliers in Thailand. In terms of human resource development, Airbus has collaborations with several universities in Thailand, such as King Mongkut's Institute of Technology Ladkrabang, Kasetsart University, and Chulalongkorn University, to develop aerospace engineering curricula and is ready to support the development of MRO personnel. Meanwhile, Airbus sees Thailand's potential to lead in sustainable aviation fuel (SAF) production, leveraging its strengths in agricultural waste materials and the ethanol industry. In the short term, production can be from used cooking oil; in the medium term, from ethanol; and in the long term, developing towards synthetic fuel production technology from carbon dioxide and water.
Textron Delivers 500th Cessna Citation CJ4 Series Business Jet
Textron has delivered its 500th Cessna Citation CJ4 series business jet, marking more than a decade of customer confidence in the light jet platform. The milestone underscores the global appeal of the Citation CJ4, which is valued for its combination of performance, efficiency and mission flexibility across business travel, air ambulance, maritime patrol, search and rescue and aerial survey operations. Textron is also progressing toward the launch of the Cessna Citation CJ4 Gen3, which is expected to receive Federal Aviation Administration certification in 2026 and will feature Garmin G3000 PRIME avionics and Garmin Emergency Autoland. With an expected range of 2,165 nautical miles and seating for up to 11 occupants, the CJ4 Gen3 should offer strong versatility for owner-operators and corporate customers. Growing demand for efficient and versatile business jets, supported by corporate travel needs and increasing special mission requirements, is expected to support the light jet market.
Aeronautical Radio of Thailand launches Digital Tower Thailand, transforming 34 airports
Aeronautical Radio of Thailand has launched the Digital Tower Thailand project to upgrade air traffic services at all 34 airports within 10 years, from 2027 to 2036. The service model is divided into 5 groups: Conventional Tower at 10 airports, Hybrid Digital Tower at 5 airports, Remote Tower at 13 airports, AFIS at 6 airports, and Remote AFIS, which will begin at Betong and Narathiwat airports, transitioning from Remote Tower to Remote AFIS. There are plans to implement Remote Tower at Betong and Narathiwat airports by 2028, and Hybrid at Suvarnabhumi and Don Mueang by 2029, to enhance safety and support flight growth toward becoming a global aviation hub.
Madison Large Cap Fund Adds Honeywell Aerospace as New Holding
Madison Investments' Large Cap Fund initiated a new position in Honeywell Aerospace Inc. during the second quarter of 2026, following the company's spin-off from Honeywell International in June 2026. The fund returned 8.4% in the quarter, underperforming the S&P 500's 15.2% gain, which was driven largely by a narrow group of AI-related stocks. Honeywell Aerospace closed at $164.73 per share on August 21, 2026, with a market capitalization of $52.21 billion and a one-month return of -21.87%. Madison believes the separation will enhance the business through better-tailored management compensation and capital allocation, and that the combination of attractive growth outlook, improved incentives, and optimized capital allocation is underappreciated.
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.
Phiphat unveils transport plan, pushing investment in 262 major projects for 2027
Mr. Phiphat Ratchakitprakarn, Deputy Prime Minister and Minister of Transport, revealed the infrastructure investment plan for 2027 comprising 262 projects, along with plans to develop 51 new projects from 2028 to 2030, aiming to integrate land, rail, water, and air travel and transport into a single system to elevate Thailand into a regional transport hub. Rail will be developed as the backbone, including electric trains in Bangkok and its vicinity, double-track railways nationwide, new lines connecting neighboring countries, and high-speed trains, while converting BMTA buses to electric buses and developing electric boats and smart piers. For roads, the motorway, expressway, and main and secondary road networks will be connected, such as the Rama II project, the M6 Bangkok–Nakhon Ratchasima, the M8 Nakhon Pathom–Pak Tho, and the M5 Rangsit–Bang Pa-in. For water transport, Laem Chabang Port Phase 3 will be accelerated to increase container capacity from 11.10 million TEU to 18.10 million TEU per year. For air transport, Suvarnabhumi Airport will be expanded from 60 million to 70 million passengers per year, Phuket Airport from 12.5 million to 18 million passengers per year, and Chiang Mai Airport from 8 million to 20 million passengers per year, along with plans for new airports, namely Andaman Airport and Lanna Airport.
Astronics Stock Surges 15.8% After Q2 Earnings Beat
Astronics Corporation stock surged 15.8% through 11:30 a.m. ET on Wednesday after the aerospace and defense company beat analyst forecasts for second-quarter earnings. The company reported earnings of $0.70 per share on sales of $260 million, exceeding Wall Street expectations of $0.54 per share on $245.8 million in sales. Sales grew 27% year over year, with aerospace sales making up more than 91% of total sales at operating margins of 20.3%. Management guided for third-quarter sales of $265 million to $275 million and more than $1 billion in total sales through year-end, with a backlog of $780.6 million and a book-to-bill ratio of nearly 1.2. The company expects to end 2026 with positive free cash flow, supported by operating cash flow topping $30 million in the second quarter and capital spending of no more than $45 million this year.
Jim Cramer Dumps Honeywell Aerospace After Guidance Cut Triggers 28% Plunge
Jim Cramer revealed on Mad Money that his Charitable Trust sold its entire position in Honeywell Aerospace at the opening bell after the company slashed its full-year outlook, triggering a nearly 28% stock collapse between August 4 and August 6. Management cut organic growth guidance to 4% to 5% from 7% to 9%, lowered pro forma standalone adjusted EBIT to a range of $4.35 billion to $4.45 billion from $4.65 billion to $4.75 billion, and revised year-over-year adjusted EBIT growth to flat to 3% from 7% to 10%, citing persistent supply-chain constraints that forced a shift away from higher-margin aftermarket operations. Second-quarter revenue came in at $4.52 billion, up 5% year-over-year, but adjusted earnings of $1.87 per share missed consensus estimates, weighed down by roughly $100 million in separation-related costs and inventory obsolescence charges. Cramer called the situation very suboptimal and a rookie mistake, stating the company should have been much more forthcoming, while Jefferies slashed its price target to $175 from $235 and kept a Hold rating, warning that fixing supply chains and rebuilding trust will take time.
Honeywell Aerospace misses Q2 estimates, slashes full-year outlook
Honeywell Aerospace reported second-quarter results that missed Wall Street expectations and cut its full-year financial guidance, citing supply chain constraints. The company posted sales of $4.5 billion and adjusted EBIT of $995 million, below analyst projections of $4.6 billion and $1.1 billion, respectively. Adjusted earnings per share fell to $1.87 from $2.75 a year earlier. For the full year, Honeywell Aerospace now expects organic sales growth of 4% to 5%, down from its prior guidance of 7% to 9%, and trimmed its pro forma standalone adjusted EBIT target to $4.35 billion–$4.45 billion from $4.65 billion–$4.75 billion. The company also issued full-year adjusted earnings per share guidance of $7.60 to $7.90. Honeywell Aerospace began trading on Nasdaq under the ticker HONA in late June after completing its spinoff from Honeywell Technologies.
Honeywell Aerospace Stock Plunges 20.8% After First Post-Spin Earnings Miss
Honeywell Aerospace stock crashed 20.8% in early trading Thursday after the company missed earnings expectations in its first quarterly report since spinning off from Honeywell in June. The aerospace supplier posted pro forma earnings of $1.87 per share on revenue of $4.5 billion, falling short of the $2.13 per share analysts had forecast. Sales rose 5% year-over-year on a pro forma basis, but pro forma earnings dropped 32% and GAAP earnings tumbled 71% to just $0.78 per diluted share. CEO Jim Currier cited strong secular trends and significant customer demand, though supply constraints are limiting sales growth, and the company lowered its second-half guidance to no more than 5% sales growth with earnings of about $7.75 per share and free cash flow between $1 billion and $1.5 billion.
AEROTHAI forecasts 919,000 flights in fiscal 2026, up 1.64%, accelerates digital airspace upgrade
The Ministry of Transport is accelerating the development of Thailand's air traffic management system to become a global aviation hub, forecasting a total of 919,643 flights in fiscal year 2026, or an average of 2,520 flights per day, an increase of 1.64 percent from the previous year. Deputy Transport Minister Phattharaphong Phattharaprasit revealed that he has assigned Aeronautical Radio of Thailand Company Limited to expedite several key projects, such as integrating weather radar data with the Thai Meteorological Department to enhance safety, deploying Digital Tower and Remote Tower systems at major and regional airports, developing the System Wide Information Management, or SWIM, to transition to digital aviation data exchange in line with ICAO standards by 2030, and opening the L770 flight route to China in September 2026, which will reduce distance and save fuel. In addition, the BOBCAT system developed in-house by Aeronautical Radio of Thailand has efficiently managed flights through Afghan airspace, reducing holding time by over 73,268 minutes and cutting carbon dioxide emissions by more than 26,394 tonnes in the first 300 days.
US nearly exhausts long-range missile stockpile in Iran war, raising concerns over capability to counter China and Russia
The United States has used a large number of precision-guided long-range missiles in the war with Iran over the past five months, depleting some weapons stockpiles to near-empty levels and raising concerns within the government that the military may have reduced capability if it faces a new conflict with China or Russia. Three sources told Reuters that the US Army has used almost all of its ATACMS and PrSM missiles during military operations in Iran, marking the first time such ammunition usage data has been disclosed. In addition, the US has used nearly half of its global stockpile of Tomahawk cruise missiles since the war began. Meanwhile, a report by the Center for Strategic and International Studies estimates that from February to July, the US used about 65 percent of its Patriot interceptor missiles, and the number of THAAD interceptor missiles has decreased by at least 38 percent. President Donald Trump dismissed the concerns, stating that the US has more weaponry than any other country in the world and that arms manufacturers are ramping up production at record levels to replenish stockpiles.
Flyte Becomes Inaugural Enterprise Customer of Volato AI
Flyte, a subsidiary of Catheter Precision, has become the first enterprise customer of Volato AI, an artificial intelligence platform designed for business aviation. The deployment is part of Flyte's strategy to use advanced technology and automation to scale its regional private aviation platform, with expectations that Volato AI will enhance customer experience, improve operating efficiency, and increase workforce productivity across flight operations. The AI platform is expected to assist with operational workflows including customer communications, charter sales support, flight quoting, crew coordination, maintenance scheduling, dispatch support, compliance assistance, document management, and administrative processes. Flyte's CEO Marc Sellouk stated that intelligent automation will be critical for scaling operations efficiently while maintaining high customer service levels, and Volato Group's Chairman Matt Liotta noted that the partnership will help refine aviation-specific AI agents using real-world operating environments.
Jim Cramer sees Honeywell Aerospace as overlooked winner after industrial split
Jim Cramer says Honeywell Aerospace may be the overlooked piece of Honeywell's breakup into three separate public companies, comparing the move to General Electric's multiyear restructuring. Honeywell Aerospace began trading separately on June 29, while the automation business became Honeywell Technologies and the advanced-materials unit was spun off as Solstice Advanced Materials in October 2025. Cramer argues that focused aviation and defense firms often command premium valuations, and Honeywell Aerospace had 2025 sales of $17.4 billion with an $18 billion backlog. He cautions that it may take several clean quarters for the market to recognize the sum-of-the-parts value, with Honeywell Aerospace's first independent earnings report due August 5.
Aptima Scientist Contributes to FAA's First Formal Guidance for Extended Reality in Commercial Flight Simulation
Aptima announced that Dr. Stephanie G. Fussell, a scientist in its Training, Learning, and Readiness Division, played an integral role in shaping the Federal Aviation Administration's first formal guidance for the use of extended reality technologies in qualified flight simulation training devices for commercial aviation. The guidance establishes a framework for integrating virtual, augmented, and mixed reality into commercial pilot training while meeting rigorous industry standards, and was developed to harmonize with similar guidance from the International Civil Aviation Organization and the European Union Aviation Safety Agency. Dr. Fussell said the guidance marks an important step toward the responsible adoption of XR in commercial aviation and expressed hope that the framework will support implementation in other industries. Aptima CEO Michael J. Garrity stated that the achievement reflects the company's commitment to advancing human-centered technologies that improve learning and readiness in mission-critical environments.
The Cessna Citation CJ3 Gen3 prototype has completed its first flight, advancing the next-generation light jet toward certification. With this milestone, all three next-generation Citation light jets—the CJ4 Gen3, CJ3 Gen3, and M2 Gen3—are now in flight testing. The initial nearly two-hour flight from Wichita Dwight D. Eisenhower National Airport reached a maximum altitude of 41,000 feet and a maximum speed of 278 knots indicated, focusing on cockpit software functionality. The aircraft features Garmin Emergency Autoland on the Garmin G3000 avionics platform and offers a maximum range of 2,040 nautical miles and a maximum payload of 2,135 pounds. Textron Aviation is now conducting comprehensive flight testing toward FAA certification and entry into service.
RTX Raises 2026 Sales and Profit Outlook on Strong Aftermarket and Defense Demand
RTX Corporation lifted its 2026 sales and profit outlook, citing sustained demand for commercial aircraft maintenance and military systems. The company now projects adjusted sales of $95 billion to $96 billion, up from a prior range of $92.5 billion to $93.5 billion, and adjusted earnings per share of $7.10 to $7.25, up from $6.70 to $6.90. The revised forecast came during the second quarter earnings call, where RTX reported quarterly revenue of $24.7 billion, a 14% year-over-year increase, and adjusted earnings per share of $1.89, up 21%. The Pratt & Whitney unit saw a 16% sales rise to $8.89 billion, while the Raytheon defense business grew 18%, and Collins Aerospace posted an 8% increase. The company's total backlog expanded 22% to $289 billion, with $170 billion in commercial aerospace and $119 billion in defense orders.
Eviden and Thales strengthen French Army vehicle navigation with Galileo PRS integration
Eviden and Thales have integrated Thales' Galileo PRS capability into Eviden's militarized P3TS satellite navigation receiver used by the French Army. The upgrade enhances geolocation resilience for army vehicles by improving resistance to electronic attacks and spoofing while ensuring data integrity in contested environments. Two options will be available: the TopStar Galileo PRS Core Module providing access to Galileo PRS and open Galileo and GPS signals, and the TopStar Smart Receiver which adds anti-jamming functionality, both featuring an ultra-precise clock for tactical radio synchronization even after GNSS signal loss. The P3TS PRS system increases European strategic autonomy by reducing GPS dependency and meets forces' needs for sovereign, resilient solutions rapidly deployable in theaters where jamming and spoofing risks have intensified.
Aerospace Manufacturing Profits Outpace Airlines as Fortune Global 500 Aviation Landscape Shifts
The 2026 Fortune Global 500 list shows that aerospace manufacturers generally posted higher profits than airlines. GE Aerospace topped all aviation companies on the list with a net profit of 8.704 billion US dollars, earning over 3 billion dollars more than the world’s most profitable airline, Emirates Group. Airbus recorded a net profit of 5.889 billion dollars, up 28.7 percent year on year. Boeing returned to profitability with a net profit of 2.235 billion dollars, and its revenue surpassed that of Airbus. Honeywell posted a net profit of 4.729 billion dollars. Supply chain strains have led to a shortage of aircraft and components, driving up manufacturers’ profits, while airlines have been weighed down by delivery delays and rising costs. Emirates Group reported a net profit of 5.354 billion dollars. Delta Air Lines had the highest revenue among global carriers and ranked second in net profit. China’s three state-owned major airlines remained absent from the Global 500. Two of them were still loss-making in 2025, and their combined losses in the first half of 2026 are expected to approach 10 billion yuan. Xiamen C&D Group ranked 112th with revenue of 97.028 billion dollars, but it swung from profit to loss in 2025, posting a loss of 509 million dollars.
Dassault Aviation advances India Rafale deal and tests AI warfare system
Dassault Aviation is progressing a major Rafale export contract with India and has completed a successful in-flight trial of an AI-developed electronic warfare payload on a Rafale platform. The potential deal signals an expansion of the company's fighter jet footprint in a key defense market, while the trial with Harmattan AI integrates an AI-driven electronic warfare system onto the aircraft. Both developments highlight material business and technology moves for Dassault Aviation in the defense aviation sector, positioning the company within long-term defense themes focused on air power and electronic warfare capabilities.
UK aerospace faces 10,000-engineer annual shortage as AI lures young talent
The UK aerospace and defence sector is facing a shortage of around 10,000 specialized engineers a year, with artificial intelligence and other newer technologies drawing away potential recruits. More than 50% of licensed aerospace engineers in Britain are older than 50, while fewer than 10% are under 30, according to a March report by the Royal Aeronautical Society. Trade group ADS said the sector has grown 31% over the last decade but the talent pipeline has not kept pace, even as aerospace, defence and security added 46.8 billion pounds to the UK economy last year. Companies are using airshow displays and graduate schemes to attract Generation Z and Alpha, but face competition from higher-paying technology firms like Anthropic and OpenAI. The UK government hopes renewed defence investment tied to the war in Ukraine will boost the sector's appeal.
Flight Simulator Market to Reach USD 9.77 Billion by 2031, Growing at 8.0% CAGR
The global flight simulator market is projected to grow from USD 6.65 billion in 2026 to USD 9.77 billion by 2031, at a compound annual growth rate of 8.0%, according to a new report by MarketsandMarkets. The market was valued at USD 6.22 billion in 2025. Full flight simulators are estimated to account for 64.2% of the market in 2026, while the software segment is expected to register the highest CAGR of 9.7%. The Middle East is projected to be the fastest-growing region, driven by fleet expansion and new training centers in countries such as the UAE, Saudi Arabia, and Turkey. Key players include CAE Inc., FlightSafety International, Thales, Airbus, and TRU Simulation + Training Inc.
Garmin Pilot adds Mobile Clearance Delivery for streamlined IFR clearances
Garmin has introduced Mobile Clearance Delivery for Garmin Pilot, allowing Premium subscribers on iOS devices to obtain and cancel IFR clearances electronically at select U.S. airports. Developed in collaboration with the FAA and MITRE, the feature is currently in operational test and evaluation at five airports, including New Century AirCenter, Hooks Field, Sugar Land Regional Airport, Galveston Scholes International Airport, and Appleton International Airport. Pilots can receive and accept clearances with a WILCO response, overlay the cleared route on the app’s map, and send it to compatible avionics via Connext. A future enhancement will enable in-app IFR cancellation after landing. The feature will roll out nationwide in phases through 2028.
Incora and GKN Aerospace sign multi-year strategic partnership agreement
Incora and GKN Aerospace have signed a new multi-year strategic partnership agreement, deepening a collaboration that spans more than 25 years. The agreement extends their long-standing relationship and focuses on creating a resilient, efficient, and value-driven supply chain across GKN Aerospace’s worldwide operations. Under the new deal, Incora will continue to provide integrated supply chain solutions, including hardware and chemical management services, across multiple GKN Aerospace facilities globally. The partnership supports multiple OEMs and product areas including aero engines, aerostructures, and electrical systems.
Sensata expands aerospace motor portfolio into flight controls and propulsion
Sensata Technologies is expanding its aerospace motor portfolio into flight control actuation and propulsion applications. The company unveiled the expanded product lineup at the Farnborough International Airshow, targeting applications including flight control actuation, propulsion, stabilization, guidance, surveillance, targeting, and precision positioning systems. The motors are designed for high power density while meeting aerospace requirements for weight, size, and reliability, and can be customized for specific customer applications. Sensata is building an aerospace manufacturing network across the United States and Mexico using AS9100-certified facilities. Financial terms were not disclosed, and no customer orders were announced alongside the product introduction.
Honeywell Aerospace unveils IndiGo avionics deal, new navigation system, and Aeromexico runway safety plan at Farnborough
Honeywell Aerospace announced a major avionics agreement with IndiGo, introduced a new military navigation system, and disclosed plans to supply runway safety software to Aeromexico at the Farnborough International Airshow. IndiGo selected Honeywell avionics, auxiliary power units, and other systems for 810 Airbus A320neo family aircraft on order, marking the largest original equipment selection in Honeywell Aerospace's history. Honeywell also launched the iTALIN 550 navigation platform for military and commercial ground vehicles, jointly developed by its Czech Republic operations and subsidiary Civitanavi Systems in Italy, with limited availability expected in the fourth quarter of 2026 and full production in early 2027. Aeromexico intends to install Honeywell's SURF-A runway safety software across its fleet of more than 100 Boeing 737 Next Generation and 737 Max aircraft, with FAA certification anticipated to begin in the fourth quarter of 2026. Financial terms of the IndiGo and Aeromexico agreements were not disclosed.
Pipistrel Unveils Voyager Training Aircraft at EAA AirVenture 2026
Pipistrel, a Textron Inc. company, introduced the Pipistrel Voyager, a next-generation training aircraft, at EAA AirVenture 2026 in Oshkosh, Wisconsin. The Voyager is designed to expand flight school capabilities with instrument flight rules training, intentional spin certification, and a ballistic parachute, while maintaining efficiency and a 2026 base price of €240,000. It features a Rotax 912 ULS engine, a maximum takeoff weight of 1,389 pounds, a useful load of 552 pounds, and a maximum range of 740 nautical miles. The aircraft is equipped with the new Garmin AXIS flight display and is expected to enter service in 2027, aligning with anticipated MOSAIC regulations.
Honeywell Aerospace wins avionics and APU order for IndiGo's 810 Airbus fleet
Honeywell Aerospace has been selected by low-cost airline group IndiGo to supply avionics and power systems for its fleet of 810 Airbus A320neo family aircraft. Under the agreement, Honeywell will provide its 131-9A Auxiliary Power Units, advanced weather radar systems, traffic collision avoidance systems, and flight management systems. The deal also includes a comprehensive aftermarket support program to optimize fleet performance throughout the aircraft's operational life.
Aeromexico to Deploy Honeywell SURF-A Runway Safety Tech on Over 100 Boeing 737s
Aeromexico intends to deploy Honeywell Aerospace's SURF-A runway safety technology across its entire Boeing 737 NG and 737 MAX fleet, covering more than 100 aircraft. The airline aims to become the launch customer for the system, which provides pilots with real-time aural and visual alerts when on a potential collision course with another aircraft on the runway. FAA certification of SURF-A on several Boeing aircraft is expected to begin in the fourth quarter of 2026 and continue into 2027. The technology uses GPS data, ADS-B equipment, and software analytics to warn pilots about 30 and 15 seconds before a potential impact, and is available as a software upgrade to Honeywell's Enhanced Ground Proximity Warning System and Traffic Collision Avoidance System already installed on Aeromexico's 737 fleet.
Honeywell Aerospace Growth Tied to Air Travel and Aftermarket Demand
Honeywell Aerospace is positioned to benefit from rising air travel demand and a shift toward aftermarket services. The International Air Transport Association expects global air passenger demand to grow 2.1% year over year in 2026, supporting both original equipment and service activity. The company's large installed base across commercial, business, defense, and space platforms generates recurring revenue from spare parts, repairs, and long-term service agreements, which can be more stable than new aircraft sales. Honeywell is also expanding its digital aviation tools, such as Honeywell Forge, adding software-linked recurring revenue. The stock currently carries a Zacks Rank #3 (Hold), reflecting a measured near-term outlook despite credible long-term secular trends.
Honeywell Aerospace Stock Looks Fairly Valued After Spinoff
Honeywell Aerospace Inc. enters the public market with a valuation that appears balanced rather than mispriced. The stock trades at 23.12 times forward 12-month earnings, below the Zacks sub-industry average of 41.41 times and the Zacks aerospace sector average of 34.84 times, but at a premium to the S&P 500's 21.21 times. The company, which became independent in June 2026 after separating from Honeywell International, brings an approximately $18.4 billion backlog and a large installed base supporting recurring aftermarket revenues across avionics, propulsion, and connected aerospace systems. However, execution risks remain, including cyclical commercial aerospace demand, supply-chain dependencies, and competition from peers like GE Aerospace and RTX Corporation. Zacks Investment Research currently rates HONA a Zacks Rank #3, or Hold, suggesting investors may wait for clearer evidence of backlog conversion and margin protection before a re-rating.
Morgan Stanley stays bullish on aerospace and defense ahead of Q2 earnings
Morgan Stanley maintained a constructive outlook on the aerospace and defense sector ahead of second-quarter earnings, citing resilient commercial aerospace demand, improving aircraft production, and favorable long-term defense spending trends, while becoming more selective after recent stock volatility and valuation shifts. The brokerage reiterated positive views on commercial aerospace, defense, and space, highlighting durable aftermarket demand driven by sustained fleet utilization, low aircraft retirement rates, constrained maintenance capacity, and continued engine maintenance needs. It also said Boeing's production recovery is gaining momentum, with the 737 MAX running at 47 aircraft per month and further certification milestones expected to support the commercial aerospace outlook. In defense, Morgan Stanley said investors continue to underestimate the likelihood of a roughly $1.1 trillion U.S. fiscal 2027 base defense budget, arguing that supply-chain improvements and expanding missile production capacity should provide further upside for the sector. The firm also expects space companies to benefit from upcoming launch milestones, improving order trends, and NASA's commercial International Space Station procurement. Reflecting changing valuations rather than weakening fundamentals, Morgan Stanley downgraded Loar Holdings and TransDigm to Equal-weight, while cutting CAE and Voyager Technologies to Underweight. At the same time, it named FTAI Aviation as its top commercial aerospace pick, Northrop Grumman as its preferred defense stock, and HawkEye 360 as its top space investment. The brokerage also revised several price targets, lowering targets for companies including Honeywell Aerospace, VSE, Textron, StandardAero, Loar, and TransDigm, while raising targets for Heico, Curtiss-Wright, and Moog. It said the expanding universe of publicly traded aerospace and defense companies has increased investment opportunities but also requires greater selectivity.