Economic Indicators - U.S. February Empire State manufacturing index fell to 7.1, a smaller decline than expectations of 6.4 [3] - Economists expect December Durable Goods Orders to drop -1.8% month-over-month, while Core Durable Goods Orders are expected to rise +0.3% month-over-month [8] - U.S. Building Permits for December are expected to be 1.400 million and Housing Starts to be 1.310 million [9] - Industrial Production and Manufacturing Production are expected to rise +0.4% month-over-month in January [10] Federal Reserve Insights - U.S. rate futures indicate a 92.1% probability of no rate change and a 7.9% chance of a 25 basis point rate cut at the next FOMC meeting in March [1] - Fed Governor Michael Barr stated that interest rates should remain unchanged until clearer evidence of inflation moving toward the 2% target is seen [2] - The minutes from the Fed's January meeting will be closely scrutinized to assess the debate on rate cuts versus keeping rates steady [7] Stock Market Movements - Wall Street's main stock indexes ended positively, with Norwegian Cruise Line Holdings surging over +12% after Elliott Investment Management acquired a more than 10% stake [4] - Southwest Airlines climbed more than +6% after UBS upgraded the stock to Buy with a price target of $73 [4] - ZIM Integrated Shipping Services jumped over +25% following an acquisition agreement with Hapag-Lloyd for $4.2 billion [4] - Genuine Parts tumbled more than -14% after posting downbeat Q4 results and announcing plans to split its auto and industrial parts units [4] Corporate Earnings - Prominent companies such as Analog Devices, Booking Holdings, Carvana, DoorDash, and Occidental Petroleum are set to release quarterly results [11] - Cadence Design Systems climbed more than +7% in pre-market trading after posting upbeat Q4 results and issuing solid FY26 guidance [18] - Palo Alto Networks slumped more than -6% in pre-market trading after cutting its full-year adjusted EPS guidance [18] International Market Developments - The Euro Stoxx 50 Index is up +0.97%, supported by strong gains in defense and bank stocks [13] - U.K. January CPI fell -0.5% month-over-month and rose +3.0% year-over-year, while January Core CPI fell -0.6% month-over-month and rose +3.1% year-over-year [14] - Japan's January Trade Balance stood at -1,152.7 billion yen, with exports rising +16.8% year-over-year [16]

RTX has improved its capability to deliver a key missile for the US Navy but the company’s performance remains below expectations, according to a Pentagon assessment https://t.co/fKnVrNt1Kz ...

If you want full access to all our reports, data and investing ideas, join The Aerospace Forum , the #1 aerospace, defense and airline investment research service on Seeking Alpha, with access to evoX Data Analytics, our in-house developed data analytics platform.Safran SA ( SAFRF , SAFRY ), a key supplier in the commercial aviation and defense sectors, rallied 13.6% since my last report , outperforming the S&P 500’s 1.3% gain. The company reported its full-year earnings in February along with an update toD ...

ITT Conference Call Summary Company Overview - **Company**: ITT Inc. (NYSE: ITT) - **Industry**: Engineering and manufacturing of components for harsh environments across various sectors including transportation, aerospace and defense, energy, chemicals, and mining - **Market Size**: Approximately $4 billion - **Growth**: Achieved 7% organic growth over the last three years [10][11] Core Business Segments 1. **Industrial Process**: Focuses on flow technologies, including pumps and valves 2. **Motion Technologies**: Produces brake pads and shock absorbers for various vehicles, including defense and high-speed trains 3. **Connect and Control Technologies**: Manufactures connectors and control components primarily for aerospace and defense [10][11] Financial Performance and Targets - **Long-term Growth Targets**: - 10% total growth - 5% organic growth until 2030 - Adjusted EPS target of over $11, potentially $12 with M&A adjustments - Adjusted operating margin target of 23-25% and cash flow margin of 14-15% [11][12] Market Demand Insights - **U.S. Industrial Demand**: Positive indicators observed in Q4 and January, particularly in aerospace and defense, automotive, and short-cycle projects [13][14] - **Backlog**: Healthy backlog with increased profitability; long-term visibility in air and defense sectors [15][16] - **Green Projects**: Significant growth in green projects, with a 90% increase in 2025 orders compared to 2024 [17] Segment-Specific Insights - **Aerospace and Defense**: Expected to see significant growth due to Boeing's production ramp-up and defense modernization investments [18][20] - **Automotive**: Anticipated to remain flat to slightly down, but ITT expects to outperform the market by 400-500 basis points [22][24] - **Industrial Process**: Expected low- to mid-single-digit growth; strong performance in short-cycle orders and spare parts [24][25] Acquisition Strategy - **SPX FLOW Acquisition**: Expected to close in March; aims to reduce automotive exposure to 20% and integrate successfully for growth [11][12][88] - **Integration Approach**: Focus on value creation rather than traditional integration; immediate synergies targeted [85][86] Profitability and Productivity - **Decentralized Structure**: Emphasizes accountability at local levels to drive productivity and growth; utilizes 48 KPIs for performance measurement [73][75] - **Pricing Power**: Strong pricing power in CCT segment; however, limited pricing power in automotive [57][100] Future Outlook - **Debt Management**: Post-acquisition focus on debt reduction, aiming for a debt ratio around 2.7 [110][114] - **Valuation Expectations**: Anticipated P/E ratio around 20 times [116] Key Risks and Considerations - **Market Volatility**: Potential impacts from economic fluctuations and sector-specific challenges, particularly in automotive and chemicals [22][66] - **Integration Challenges**: Ensuring smooth integration of SPX FLOW while maintaining customer satisfaction and operational efficiency [86][90] This summary encapsulates the key points discussed during the ITT conference call, highlighting the company's strategic direction, market performance, and future growth prospects.

Core Viewpoint - Raytheon, a business unit of RTX, has been awarded a contract to develop domestic production capabilities for thin film lithium niobate (TFLN) wafers, which are critical for high-speed communications and advanced sensing systems, aiming to reduce reliance on foreign sources [1] Group 1: Contract and Production - The contract is awarded by the Air Force Research Laboratory to establish a domestic supply of TFLN wafers, essential for both defense and commercial applications [1] - Raytheon will collaborate with US-based company G&H to develop the manufacturing process for high-quality TFLN wafers, with production expected to transition to G&H in early 2026 [1] Group 2: Supply Chain and Market Impact - The initiative aims to create a secure, independent U.S. supplier of TFLN, addressing vulnerabilities in the supply chain due to foreign market dominance [1] - The establishment of G&H as a domestic supplier is seen as crucial for enhancing supply chain resilience for both defense and commercial sectors [1] Group 3: Company Background - Raytheon has over 100 years of experience in developing defense solutions, including advanced technologies in air and missile defense, smart weapons, and sensors [1] - RTX employs more than 180,000 people globally and reported sales exceeding $88 billion in 2025, focusing on advancing technology and integrated defense systems [1]

Core Viewpoint - Honeywell has filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, which includes significant impairment charges related to its Productivity Solutions and Services and Warehouse and Workflow Solutions businesses, classified as assets held for sale as part of its portfolio optimization strategy [1] Financial Performance - Honeywell reported an incremental goodwill impairment charge of $436 million associated with its Industrial Automation segment and an impairment charge on assets held for sale of $35 million, offset by a tax benefit of $61 million [1] - The company's revised full-year reported earnings per share from continuing operations is $6.94, with net income from continuing operations at $4,468 million, operating income at $5,573 million, and an operating margin of 14.9% [1] Business Strategy - The planned sale of the PSS and WWS businesses is part of Honeywell's ongoing portfolio optimization strategy, allowing the company to focus on its core automation portfolio [1] - Honeywell expects to announce the sale of the PSS and WWS businesses in the first half of 2026 [1]

An artificial-intelligence defense startup seeking to deploy its voice-controlled AI agent across drones and other military technology has raised $6 million in a seed round led by Bessemer Venture Partners. https://t.co/B3AyGnIARN ...

RT Katrina Manson (@KatrinaManson)BLOOMBERG SCOOP: Elon Musk’s SpaceX and wholly owned subsidiary xAI are competing in a secretive new Pentagon contest to produce voice-controlled, autonomous drone swarming technology, according to people familiar with the matter.https://t.co/HMaPILVzkT ...

Gabler Group, a maker of submarine technology components that derives most of its revenue from defense contracts, announces plans for an IPO in Frankfurt https://t.co/WXtz2QNV97 ...

African defensetech Terra Industries, founded by two Gen Zers, raises additional $22M in a month https://t.co/dTJt75stzu ...