Gabelli’s Bancroft Sees Multi-Year Missile Production Surge, Picks Honeywell, L3Harris, and Albany International

Industry Impact 4
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Summary · why it matters

Tony Bancroft, portfolio manager at Gabelli Funds, argued on CNBC that U.S. missile and aircraft production is entering a multi-year expansion driven by arsenal replenishment and rearmament against China and Russia. He highlighted Honeywell as a large-cap pick, noting that 11 of 12 top U.S. weapons systems rely on its navigation hardware, with the upcoming aerospace spin-off as a key catalyst. Bancroft also pointed to L3Harris Technologies’ planned IPO of its Axyv missile unit, which could raise up to $2 billion, and noted that its Missile Solutions revenue rose 18% year-over-year to $990 million in the first quarter of fiscal 2026. As a small-cap play, he cited Albany International, whose composites for the F-35 and LEAP engines have helped drive a 40% year-to-date rally, though three analyst Hold ratings and a $59 target suggest caution. Bancroft believes framework agreements discussed by the Trump Administration could triple or quadruple missile production, with roughly 1,000 Patriot interceptors already expended from an inventory of about 5,000.

Impact on stocks 4

Aerospace & Aviation▲ · 2 stocks
Honeywell International Inc
HON
▲ PositiveDemandrelevance

Honeywell's navigation hardware is used in 11 of 12 top U.S. weapons systems, driving demand from missile production ramp.

Defense & Geopolitical Fragmentation▲ · 1 stocks
L3Harris Technologies Inc
LHX
▲ PositiveDemandrelevance

L3Harris Missile Solutions revenue rose 18% YoY to $990M, and planned Axyv IPO highlights growth from missile production.

Artificial Intelligence▲ · 1 stocks

Theme Impact 7

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