Companies that build airplanes, jet engines and military gear — like commercial passenger jets, fighter aircraft, missiles and defense systems for governments.
Lockheed Martin Set for First Saudi F-35 Sale, Germany F-35A Rollout
Lockheed Martin is set to benefit from a US government plan to sell up to 48 F-35 jets to Saudi Arabia, following a notification to Congress in 2026, a package that would mark the first sale of F-35 aircraft to the kingdom. The company also marked the rollout of Germany's first F-35A in 2026, a key step in Berlin's transition to the aircraft. The Saudi notification for up to 48 F-35s would, if approved and executed, add a new Gulf customer to a platform already adopted by 20 nations and operating from 42 bases worldwide, extending an existing global footprint rather than creating a new product line. The next concrete waypoint is formal progression of the Saudi sale through Congress after the 2026 notification, which would turn a proposed package into a contracted backlog line, while for Germany investors can track the first eight F-35 deliveries to Ebbing Air National Guard Base for pilot training beginning this fall. Lockheed Martin, a US aerospace and defense group with a market cap of about $124.2b, designs and builds combat aircraft like the F-35 along with a wide range of military technology systems for governments in Europe, Asia, the Middle East, and other regions.
NASA in Talks for Boeing Starliner to Fly 10 or More New Missions
NASA and Boeing are in talks about using Boeing's Starliner vehicle to handle 10 or more new flights to low-Earth orbit in the coming years, The Wall Street Journal reported Friday. The Starliner has not flown since summer 2024, when performance problems including failed thrusters that posed safety risks left two astronauts stuck on the International Space Station for months; the astronauts returned to Earth on SpaceX's Crew Dragon vehicle, and the Starliner came back empty. SpaceX's Crew Dragon has been the only certified vehicle to carry NASA astronauts to the space station from the U.S., but SpaceX has stopped making new Dragon ships and has not said publicly when it plans to stop operating the ship. NASA said Friday it awarded SpaceX three additional astronaut missions to the space station using Crew Dragon, flights worth an average of $315M each and running through 2030. Few other options exist for flights to low-Earth orbit: Northrop Grumman has a cargo capsule that flies to the space station for NASA but not a human-rated one, while Russia flies vehicles to the ISS that handle crews and cargo.
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.
Lockheed Martin Rolls Out Germany's First F-35A Fighter Jet
Lockheed Martin presented Germany's first F-35A Lightning II to the German government during a ceremony at its F-35 production facility in Fort Worth, Texas, on Sept. 18, 2026. Germany's program of record calls for 35 F-35As, with the first eight aircraft to be delivered to Ebbing Air National Guard Base in Arkansas for pilot training beginning this fall, and the first German F-35s arriving in-country in late 2027. German Minister of Defense Boris Pistorius said the first fighter jets will be delivered this year, with full operational capability to be reached by 2029, calling the aircraft a decisive key capability for the German Air Force and for the whole of NATO. Lieutenant General Holger Neumann, Chief of the German Air and Space Force, said the F-35 will make Germany part of the larger international F-35 community, strengthening both Germany and NATO. OJ Sanchez, president of Lockheed Martin Aeronautics, said the company is building on more than 50 years of partnership with Germany, and noted that German industry has contributed to the F-35 program since its inception in 2001. The F-35 has been selected by 20 nations, including 13 in Europe, and more than 1,355 F-35s are currently operational worldwide.
BofA Calls Boeing Selloff Overdone After CEO Flags 777X Delay
Bank of America said Boeing's roughly 6% weekly selloff is overdone after CEO Kelly Ortberg flagged continued headwinds on the 737 and 787 production ramps and a further delay to 777X certification. Ortberg disclosed that 777X certification testing is now expected to slip into 2027, a delay tied to pending approval for a more durable seal on the GE9X engine supplied by GE Aerospace, though Boeing maintained first deliveries remain on track for next year, matching Bank of America's estimate of zero 777X deliveries in 2026 and 10 in 2027. The analysts called Ortberg's remark that the 737 ramp has yet to stabilize at 47 aircraft per month the most market-moving comment, pointing to in-house wing production as the bottleneck while noting the broader supply chain is holding up. Boeing expects certification of the 737 MAX 10, which makes up 30% of its 737 backlog, very soon, and Bank of America's 2026 forecast of 519 737 deliveries remains unchanged. Bank of America said the comments add some risk to its 2026 free cash flow estimate of $2.4 billion but that it remains comfortable with that forecast for now, and flagged a potential SPEEA strike as the bigger near-term risk, with the union's contract set to expire October 6.
Mercury Systems Beats Q2 Estimates With Record Bookings as Defense Contractors Post Strong Quarter
Mercury Systems reported fourth quarter fiscal 2026 revenues of $289.8 million, up 6.1% year on year and 9.2% above analysts' expectations, as the 14 defense contractors stocks tracked by the report collectively beat consensus revenue estimates by 4% and guided next quarter 1.1% above expectations. Chairman and CEO Bill Ballhaus said the company delivered record bookings, record backlog, record revenue, the highest EBITDA margin of the year, and robust free cash flow, though Mercury shares are down 18.5% since reporting and trade at $85.56. Huntington Ingalls posted the group's best quarter, with revenues of $3.42 billion, up 10.9% year on year and 8.2% above expectations, while its shares have traded sideways at $278.53. Parsons delivered the weakest quarter, with revenues of $1.58 billion, flat year on year and 1.9% below expectations, alongside full-year revenue and EBITDA guidance that missed significantly, sending its stock down 25.5% to $46.19. Northrop Grumman reported revenues of $10.88 billion, up 5.1% and 0.5% above expectations, with shares flat at $526.95, and Leidos reported revenues of $4.56 billion, up 7.2% and 2.6% above expectations, with its stock up 10.4% at $131.09. On average, defense contractors shares are down 2.9% since the latest earnings results.
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.
TransDigm Defense Revenue Climbs 11% as Bookings Outpace Sales
TransDigm Group's defense revenues rose approximately 11% year over year in the third quarter of fiscal 2026, with year-to-date defense revenues up 10%, as healthy demand across the U.S. defense aerospace market lifted both original equipment manufacturing and aftermarket businesses. Aftermarket growth ran slightly ahead of OEM growth, reflecting continued demand for replacement parts and services across military aircraft. Defense bookings increased both year over year and sequentially in the quarter and exceeded sales, and management expects defense revenue growth to continue through fiscal 2026, with a strong backlog providing visibility into fiscal 2027. Shares of TransDigm have lost 9.7% over the past six months against a 13.5% decline for the industry, and the stock trades at a forward 12-month price-to-sales ratio of 5.25X versus an industry average of 7.23X. The Zacks Consensus Estimate for TransDigm's 2026 and 2027 earnings has moved higher over the past 60 days, and the stock carries a Zacks Rank #3 (Hold).
US Approves $24.3B F-35 Sale to Saudi Arabia; China Tariff Decision May Slip
The State Department approved a potential $24.3B sale of 48 Lockheed Martin F-35 Lightning II aircraft to Saudi Arabia, along with 49 Pratt & Whitney F135-PW-100 engines and related equipment, a deal that still requires congressional approval and would strengthen Saudi Arabia's air defense and interoperability with U.S. and allied forces. Separately, Bloomberg reported that the U.S. could postpone announcing new tariffs on China and other countries until after President Donald Trump meets Chinese President Xi Jinping next week; a previously planned trade report was expected to recommend a 7.5% tariff on Chinese goods, while the final rate could potentially exceed the 20% level agreed during earlier talks. Nvidia CEO Jensen Huang said the company expects to sell roughly twice as many chips next year as this year as demand for AI infrastructure expands. China's ChangXin Memory Technologies is preparing to enter the NAND flash-memory market, with Reuters reporting that CXMT plans an R&D production line at its new Beijing plant and has established a research institute in the city, broadening its focus beyond DRAM. OpenAI has hired Brian McCarthy from SpaceX as vice president of worldwide sales, Fortune reported; McCarthy joined SpaceX through its acquisition of Cursor, where he led global revenue and field operations, and previously held senior sales roles at Rubrik, ThoughtSpot, AppDynamics and Qlik.
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.
HII Wins $336 Million Navy Contract for USS William J. Clinton Long-Lead Materials
The U.S. Department of War announced a $336,112,000 Navy contract for Huntington Ingalls Industries to advance procurement of long-lead materials for construction of the future USS William J. Clinton, designated CVN 82. Work will be executed in Newport News, Virginia, with completion anticipated by March 2039, and shipbuilding and conversion funding from FY 2026 will be obligated at the time of award. The award is a sub-component of the Navy's larger aircraft carrier replacement program, which defense websites say the service plans to fund at $22.34 billion over the next five years, with this contract seen as among the first in a sequence of awards as procurement accelerates. The sole-source contract reaffirms HII's status as the sole nuclear carrier builder for the U.S. Navy and extends revenue visibility to 2039, supporting the company's raised full-year shipbuilding revenue guidance of $10.2 billion to $10.4 billion and shipbuilding operating margin of 6% to 6.5%. The contract is cost-only and undefinitized, meaning work begins before final pricing and terms are agreed, adding to cash strain after HII used $31 million of net cash in operating activities in Q2, spent $193 million on capital expenditure, and posted negative free cash flow of $611 million for the first half of 2026 against full-year FCF guidance of $500-600 million. Hedge fund ownership in HII rose 18% in the second quarter to 47 funds from 40, with AQR Capital Management remaining the largest stakeholder at approximately $184 million as of June 30, 2026, followed by Diamond Hill Capital at over $55 million and Citadel Investment Group at $53 million.
GE Aerospace Says GE9X Mid-Seal Fix Won't Delay Boeing 777X Entry
GE Aerospace CFO Rahul Ghai said Thursday he believes a durability issue with the GE9X engine's mid-seal will not delay next year's planned entry into service for the Boeing 777X aircraft. Speaking at a Morgan Stanley conference, Ghai said GE has "a huge degree of confidence" in the redesigned seal after testing it internally, and that the new design has been incorporated into engines now being produced. After testing showed the mid-seal, a part connecting the front and rear sections of the engine, was not as durable as GE had expected, the company redesigned the part and began shipping GE9X engines fitted with the new seal to Boeing in the third quarter, Ghai said, adding that Federal Aviation Administration certification of the redesigned part is expected in the next few months. Ghai also said he does not see broad vertical integration as the answer to aerospace supply chain constraints, after GE agreed to buy castings supplier Consolidated Precision Products for $11.75B. The company announced the CPP deal last week as it seeks to expand supplies of precision-cast metal parts used in jet engines, including turbine blades and vanes.
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.
Boeing wins $112.4M Saudi F-15 training upgrade contract
Boeing has received a $112.4 million contract modification to upgrade and sustain Saudi Arabia's F-15 Advanced Aircrew Training Device Phase II program. The modification raises the contract's total value to $256.7 million from the previous $144.3 million. Work will be carried out at three Saudi air bases: King Faisal, King Khalid, and King Abdulaziz Air Bases. The program is expected to be completed by September 30, 2031, under the U.S. Air Force contract. The contract is part of a Foreign Military Sales program to Saudi Arabia, with the full $112.4 million funded through foreign military funds.
Lockheed's Sikorsky wins $234.46M Army contract for 16 Black Hawks
Sikorsky, a Lockheed Martin company, received a $234.46 million U.S. Army contract modification to procure 16 UH-60M Black Hawk helicopters. The modification raises the cumulative value of contract W58RGZ-26-C-0008 to $356.25 million. The helicopters will be manufactured in Stratford, Connecticut, with work scheduled for completion by June 30, 2028. The U.S. Army obligated the full $234.46 million in FY2026 aircraft procurement funds at the time of the award, and Army Contracting Command at Redstone Arsenal, Alabama, is responsible for the contract.
GM Begins Supplying Patriot Missile Components to Lockheed Martin
General Motors has started supplying missile-housing components for Lockheed Martin's Patriot PAC-3 MSE interceptors, delivering its first batch in August. Lockheed said GM completed work that typically takes months in three weeks. CEO Mary Barra told analysts this summer she expects $700 million of defense revenue this year at double-digit margins. The opportunity comes as Lockheed Martin faces a significant production ramp, with the Pentagon ordering it to more than triple Patriot output to over 2,000 missiles a year by the end of 2030 while constrained suppliers make scaling difficult. The most advanced Patriot costs over $4 million and takes more than two years to reach the customer, with many key parts largely handmade and sourced from single suppliers such as Boeing, which makes the seeker.
General Dynamics Upgraded to Zacks Rank #2 as Analysts Lift Full-Year Earnings Estimates 2.3%
General Dynamics was upgraded to a Zacks Rank #2 (Buy) after analysts raised their full-year earnings estimates by 2.3% over the past three months, signaling greater confidence in the company's earnings outlook. The shift in analyst sentiment comes as General Dynamics' year-to-date return has outpaced the broader Aerospace group, suggesting its mix of defense and aerospace businesses is being viewed as relatively resilient within the sector. The recent Q2 2026 earnings release, which showed higher revenue and net income year over year, provided the data analysts used to lift their estimates, alongside ongoing share repurchases and a growing dividend. The upgrade reinforces the near-term outlook but does not materially change the key catalyst of backlog conversion or the biggest current risk around operational and supply chain execution, particularly in Marine and complex aerospace programs. General Dynamics' narrative projects $61.9 billion revenue and $5.6 billion earnings by 2029, yielding a $414.17 fair value, a 15% upside to its current price.
Boeing CEO Signals 737 MAX Rate Delay, Pressuring $10 Billion Cash Flow Target
Boeing CEO Kelly Ortberg told a Morgan Stanley Laguna Conference audience that stabilizing 737 MAX production is taking "a little bit longer" than planned, sending shares down about 3.64% on Wednesday. Management still guides to between $1 billion and $3 billion in free cash flow for 2026 and calls the long-term $10 billion free cash flow figure "very attainable," but the delay pushes that larger target out to 2028 or 2029, shrinking its present value with the 10-year Treasury at 5.00%. Boeing is ramping to 47 airplanes per month on the 737 with a rate break to 52 in view, while the 787 line is already stabilized at eight airplanes per month. The company ended the second quarter with a record total backlog of $715 billion, including a commercial backlog of over 6,200 aircraft valued at $597 billion, and posted positive free cash flow of $631 million in the quarter. Analyst consensus carries a target price of $274.85, though the 777X first delivery has moved to 2027 and the VC-25B took another $280 million charge and slips to 2028.
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.
Boeing Uncovers $1.9 Billion in Additional Spirit AeroSystems Liabilities After $8.4 Billion Buyback
Boeing has uncovered hundreds of millions of dollars in additional liabilities at Spirit AeroSystems beyond what it initially recognized after completing its $8.4 billion acquisition of the fuselage supplier in December 2025, The Wall Street Journal reported on September 3. Spirit's assumed liabilities now exceed identifiable assets by roughly $1.9 billion, including $1.52 billion tied to off-market customer contracts that Boeing must honor at a real economic loss. Because of acquisition accounting rules, those losses do not appear on Boeing's income statement and instead sit in footnotes tied to the deal, while the purchase price allocation remains provisional for up to a year after closing. Boeing bought back Spirit's factories after having sold them in 2005 as part of an outsourcing strategy, reversing course following a string of safety failures, including two fatal 737 MAX crashes and the 2024 Alaska Airlines door-plug blowout on a plane whose fuselage Spirit built. Boeing's stock has fallen by more than half since peaking in 2019.
GoldHaven Highlights US$450 Million U.S. Government Tungsten Investment in Elmet Group
GoldHaven Resources Corp. is highlighting a US$450 million U.S. government investment in The Elmet Group aimed at expanding domestic tungsten capacity and securing America's tungsten supply chain. The company said the landmark commitment signals tungsten's growing strategic importance to national security, defence, aerospace and advanced manufacturing. GoldHaven noted that more than 800 metres have been drilled at its historic Kuhn tungsten system in northern British Columbia, with broad skarn intervals encountered including approximately 20 metres of skarn in the second drill hole, and assays pending. Historical drilling at Kuhn returned 13.0 metres grading 0.55% WO3 and 11.3 metres grading 0.59% WO3 with 0.10% MoS2, along with a historical estimate of approximately 616,500 tonnes grading 0.48% WO3 across four modelled lenses, though the company cautioned these pre-date NI 43-101 and have not been independently verified. President and CEO Rob Birmingham said the message coming out of Washington is increasingly clear that securing reliable and diversified tungsten sources is now a national-security priority. GoldHaven clarified that the US$450 million investment relates specifically to The Elmet Group, that it is not a recipient of the investment, and that it has no relationship with The Elmet Group.
Lockheed Martin Delivers First GM Defense PAC-3 MSE Components in 22 Days
Lockheed Martin announced the first delivery of mission-critical components produced by GM Defense for the PAC-3 Missile Segment Enhancement interceptor missile less than one month after the two companies signed a formal contract. The contract was signed Aug. 6, and the first batch of initial PAC-3 MSE housing components was delivered Aug. 28, a 22-day turnaround for components that can traditionally take months to years to produce. Tim Cahill, president of Lockheed Martin Missiles and Fire Control, called the 22-day turnaround a concrete example of merging world-class commercial manufacturing with defense supply chain and production practices. GM Defense leveraged its advanced casting and machining capabilities to meet exacting defense specifications, according to the announcement. Lockheed Martin said it is investing $8-9B to scale munitions production, with new buildings, expansions and thousands of jobs at more than 20 sites across America, and that munitions production and warehousing space will increase almost 50% after planned expansions. The two companies plan to build on the partnership, applying commercial practices across munitions programs and expanding capabilities for future defense systems.
BWX Technologies Expands Nuclear Manufacturing as 2025 Revenue Rises 18.3%
BWX Technologies is expanding its manufacturing and technology capabilities across advanced nuclear, commercial nuclear and government programs. The company has expanded its Cambridge, Ontario, facility to increase heavy commercial nuclear component manufacturing capacity, and is developing capabilities for high-purity depleted uranium along with investments in uranium processing and advanced manufacturing facilities. Its Innovation Campus in Lynchburg, VA, brings together design, research, engineering, testing and fabrication for advanced nuclear technologies, with R&D spanning advanced reactors, nuclear fuel, additive and autonomous manufacturing, medical radioisotopes and radiopharmaceuticals. BWXT's 2025 revenues increased 18.3% to $3.2 billion. The Zacks Consensus Estimate points to 2026 and 2027 earnings per share growth of 18.45% and 10.73%, respectively, while the stock trades at a forward 12-month price-to-sales of 3.31X versus the industry average of 7.14X.
Boeing CEO says 737 Max production ramp delayed, free cash flow to land at $2 billion
Boeing CEO Kelly Ortberg said Wednesday that stabilizing 737 Max output at 47 jets per month is taking longer than expected, sending Boeing stock down 4% by the close of trading. Speaking at a Morgan Stanley conference, Ortberg pointed to the Renton, Washington factory's wing output as the primary bottleneck holding back the higher production rate, and said hitting 52 jets per month next year will require Boeing to get wing manufacturing up to speed and win certification for an additional 737 line in Everett, Washington. Boeing Chief Financial Officer Jay Malave said at the same conference that the slower production ramp on both the 737 and the 787 Dreamliner means Boeing will likely land at $2 billion in free cash flow, the midpoint of its January guidance, rather than the $3 billion upside target. On the 787, Ortberg said engine shortages are slowing a planned increase to 10 jets per month from the current eight, with slow certification of premium seats weighing on deliveries, and he said the largest 737 variant, the Max 10, will be certified very soon; that plane is years behind schedule and accounts for about 30% of all 737 orders. Ortberg also tamped down expectations that President Donald Trump's planned meeting with Chinese President Xi Jinping on Sept. 24 would produce a Boeing announcement, saying orders from China are going to be announced by the airlines at their pace.
Thales Launches HexaForce AI Command and Control System for NATO Allies
Thales has announced the launch of HexaForce, its next-generation AI-enhanced multi-domain command and control system, purpose-built to support national sovereignty for NATO and allied nations. The system was successfully tested during the NATO CWIX 2026 exercise and is tailored for high-intensity warfare, supporting command requirements for over 100,000 personnel. HexaForce operates across land, air, sea, cyber, electromagnetic spectrum, space, and information operations, and harnesses the artificial intelligence capabilities of cortAIx, Thales' dedicated AI accelerator, which brings together 800 engineers and data scientists. Live trial phases are currently paving the way for full-scale deployment, targeting an increase in capacity from 100 to 1,000 targets processed per day. The solution draws on operational feedback from Artemis.IA, a data-centric platform deployed with the French Ministry of Armed Forces since 2023, and is already available.
CAE Signs Drone Training MoU With Poland's WB Electronics
CAE signed a memorandum of understanding with Polish defense technology company WB Electronics on September 8 at the MSPO 2026 exhibition in Kielce, Poland, pairing CAE's simulation and synthetic training expertise with WB Electronics' unmanned and autonomous platforms to train operators for defense forces in Canada, Poland, and allied nations. The deal followed CAE's August 12 report of its Q1 fiscal 2027 quarter, in which Defense revenue climbed 8.3% year over year to $531.8 million and adjusted segment operating income margin ticked up to 9.5% from 9.4%, while consolidated revenue rose 6.8% to $1,173.4 million and free cash flow swung to a positive $104.0 million from negative $134.7 million a year earlier. Operating income fell 35.1% to $86.8 million on $48.3 million in restructuring costs, and earnings per share dropped to $0.10 from $0.18, with Civil's adjusted segment operating income margin falling to 16.5% from 20.2%. Defense order intake fell 26.1% year over year to $451.9 million, pushing the quarter's book-to-sales ratio to 0.85 times, and management's fiscal 2027 outlook calls for Civil revenue to be flat to slightly down. CAE repurchased and cancelled 1,107,279 shares for $39.0 million during the quarter and is pursuing a transformation plan targeting $125 million to $150 million in annual run-rate savings by fiscal 2030, with total charges expected to reach $200 million to $250 million.
Boeing Wins Up to Four 777-8F Freighter Orders From Afcom, Leases 757-200PCF to Jupiter Jet
Boeing has secured a Letter of Intent from Afcom Holdings Limited for up to four Boeing 777-8F Freighters and agreed to lease a Boeing 757-200PCF freighter to Jupiter Jet. The Afcom commitment covers up to four of the 777-8F jets, while the Jupiter Jet arrangement is a single 757-200PCF lease. Both deals lean on Boeing's existing 757 and 777-8F programs and point to airlines committing capacity in long-haul and regional freight. The practical checkpoint is Boeing's next detailed backlog disclosure and freighter delivery schedule commentary in its upcoming quarterly report, including how many of Afcom's up to four 777-8F jets progress from Letter of Intent status into firm orders by the end of 2026. The orders do not resolve Boeing's larger issues, such as high debt or the need to keep stabilising production, but they speak to customer confidence in its widebody and freighter offering across multiple regions.
Fed raises rates for first time in 3 years, Dow closes down 631 points
The US Federal Reserve raised interest rates for the first time in more than three years, to a range of 3.75-4.00%, by a unanimous 12-0 vote, and signaled it may raise rates once more this year. The Dow Jones Industrial Average closed at 51,461.78, down 631.21 points, or 1.21%. The S&P 500 closed at 7,551.81, down 33.92 points, or 0.45%, and the Nasdaq closed at 25,978.42, down 3.15 points, or 0.01%. Fed Chair Kevin Warsh said the US economy has strengthened since the previous meeting, but inflation has shown almost no sign of slowing, having remained above the 2% target for five years. By sector, technology stocks posted the biggest gains among the 11 groups calculated in the S&P 500, while energy closed down 3% on lower crude oil prices, with Chevron and Exxon Mobil falling 2.9% and 3.5% respectively. Intel shares jumped 4.0% after reports that South Korea's SK Hynix is in talks with the company about manufacturing memory chips in the United States, and Boeing fell 3.7% after Chief Executive Kelly Ortberg said it will take longer than expected to restore 737 MAX production capacity to 47 aircraft per month.
Boeing Shares Fall 6% as CEO Flags Production and Cash Flow Concerns
Boeing shares fell 6% Wednesday after President and Chief Executive Officer Kelly Ortberg outlined production constraints and revised cash flow expectations at the Morgan Stanley Laguna Conference. Ortberg said Boeing is not yet stable at its target rate of 47 aircraft per month on the 737 program, with wings production serving as a constraint to ramping up output, and that free cash flow above $2 billion is now less likely due to delivery challenges, though the company maintained its full-year guidance of $1 billion to $3 billion in free cash flow. On the 737 MAX 10, which represents roughly 30% of Boeing's 737 backlog, Ortberg said certification is coming "very soon" with all flight testing completed. For the 777X program, testing for certification continues with some expected to spill into 2027, while the company still plans 2027 deliveries and is holding contract discussions with airlines on built 777X aircraft. Ortberg also flagged risks including potential charges on defense programs and delays in engine deliveries for the 787 program, noted Boeing is receiving an "increment" of orders from China, and said the company is working to avoid a work stoppage with the SPEEA union, warning that a strike would shut down the 777X certification program.
RTX Says NASAMS Air Defense Combat-Ready for Australian Army
RTX said Wednesday that its Raytheon Australia business has completed delivery and preparation of a new air defense system for the Australian Army, declaring the National Advanced Surface-to-Air Missile System, known as NASAMS, combat-ready. The milestone marks the end of a multiyear development and integration project, with equipment delivered, connected and tested and Australian soldiers trained to operate it. Australia's version pairs locally designed radars from CEA Technologies with a Fire Distribution Centre from Norway's Kongsberg, and Raytheon's mobile launcher is mounted on the Australian-built Hawkei protected vehicle. The system can fire several Raytheon missiles, including the standard AMRAAM, the longer-range AMRAAM-ER and the AIM-9X, and is described as a short-range air defense system protecting a limited geographic area. RTX said combat use of NASAMS has contributed to international demand and that it is investing to increase production, though it disclosed no new order value, revenue forecast or additional Australian procurement tied to the announcement and did not specify how much capacity it plans to add or when it will be available.
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.
RTX Corporation is expanding its defense communications capabilities through its subsidiary Collins Aerospace, which in 2025 was awarded a contract to deliver satellite communication systems supporting survivable communications across multiple frequency bands. Collins Aerospace also secured a role as the primary subcontractor for a U.S. Navy solution involving the engineering design and manufacturing of a Very Low Frequency communication subsystem, along with mission command, control and communications infrastructure, and is additionally supporting Advanced Extremely High Frequency and voice communications. The Zacks Consensus Estimate for 2026 and 2027 earnings per share suggests year-over-year growth of 14.79% and 7.60%, respectively. RTX is trading at a premium relative to the industry, with a forward 12-month price-to-sales of 2.62X compared with the industry average of 2.28X, and over the past year RTX shares have rallied 23.5% against the industry's 11.3% decline. RTX currently has a Zacks Rank #2 (Buy).
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.
Forgent Power, Skyworks, Axon and Valero Lead Company News
Forgent Power Solutions shares jumped 9.5% after the company reported fourth-quarter fiscal 2026 adjusted earnings of 25 cents per share, beating the Zacks Consensus Estimate of 23 cents. Skyworks Solutions shares surged 13.6% as CEO Philip Brace expressed confidence that the $22 billion Qorvo merger could close by late September or early October, while Qorvo shares advanced 9.3%. Axon Enterprise shares slipped 9.8% after announcing plans for a $1 billion debt issuance, adding to investor concerns over borrowing costs. Valero Energy shares rose 3.7% as surging crude prices boosted energy stocks amid escalating Middle East supply concerns.
Axon Enterprise has closed a US$1b offering of 0% convertible senior notes due 2031, a funding move that has sharpened investor focus on dilution risk and the company's expanding acquisition war chest. The share price reaction has been sharp, with Axon Enterprise down 9.81% on a 1-day share price return basis and 26.85% over 30 days, while still showing a 4.41% 90-day share price return. Recent headlines around the US$1b zero coupon convertible notes and a larger revolving credit facility have amplified worries about dilution and leverage. Axon Enterprise closed at $442.08, compared with a widely followed fair value estimate of $693.40 that leans on long-term bookings, recurring software and a rich contract pipeline. The stock trades on a P/S ratio of 11.2x, compared with 4x for the wider US Aerospace & Defense group and 16.4x for its peer set, while the fair ratio sits at 14.2x.
Mercury Systems Extends CEO Bill Ballhaus's Contract Through 2030, Reaffirms Guidance
Mercury Systems has extended the employment contract of Chairman and CEO Bill Ballhaus by another three years, keeping him in the role through August 15, 2030. Lead Independent Director Barry Nearhos said Ballhaus has driven strong operational and financial results since taking the helm three years ago, and that the Board has high confidence in his continued leadership as the company enters fiscal year 2027 with enhanced multi-year visibility and an improving organic growth outlook. Ballhaus said the focus will remain on executing for customers, scaling efficiently, and progressing toward the company's targeted growth, margin, and free cash flow profile. Mercury Systems also reaffirmed the financial guidance it previously provided during its earnings conference call on August 18, 2026. The Andover, Massachusetts-based aerospace and defense electronics maker trades on Nasdaq under the symbol MRCY.
AEVEX Wins Up to $92.2M SkyRange Contract for Hypersonic Testing
AEVEX Corp. announced it has been selected for a contract valued at up to $92.2 million over the next three years to support the Department of War Test Resource Management Center SkyRange program. SkyRange is the Department of War's flagship initiative to modernize hypersonic flight test infrastructure, replacing fixed and ship-based range assets with high-altitude airborne platforms that collect, relay, and distribute real-time telemetry data. Under the contract, AEVEX will provide airborne range integration and engineering services, flight operations support across Western U.S. and Pacific test corridors, airborne telemetry relay and resilient communications architecture support, payload and mission systems integration, and distributed range networking, instrumentation, and mission data support. Mike Jackson, Senior Vice President of Global Solutions at AEVEX, said the award positions the company to deliver critical support to hypersonic test operations and strengthens the next generation of the Department of War's test and evaluation enterprise. SkyRange was established to repurpose unmanned aircraft, including former RQ-4 Global Hawks, into Range Hawk platforms equipped with specialized upward-looking sensors and instrumentation to track hypersonic vehicles in flight.