Core Insights - The global backlog of unfilled aircraft orders exceeds 17,000 jets, with Boeing facing production delays that extend delivery timelines, resulting in an average fleet age of 15 years [1] - GE Aerospace and TransDigm Group are two major beneficiaries of this situation, each profiting in distinct ways [1] GE Aerospace - GE Aerospace has an installed base of approximately 80,000 commercial and military engines, generating service revenue of $24 billion in 2025, a 26% increase year-over-year, which constitutes 53% of total revenue [2] - Management projects $8.2 billion in free cash flow (FCF) for 2026, with FCF conversion exceeding 100%, and maintains a clean balance sheet compared to TransDigm's higher leverage [4] - GE trades at about 43 times estimated 2026 earnings, reflecting a market expectation of flawless execution and a pure-play razor-and-blade model [5] - GE generated $7.3 billion in free cash flow in fiscal 2025, with a gross margin of 36.64% and a dividend yield of 0.43% [10][11] TransDigm Group - TransDigm specializes in manufacturing thousands of small, mission-critical components for aircraft, holding a sole-source and proprietary position for many parts, which grants significant pricing power [6] - The company reported an operating margin of 47.2% in fiscal 2025, significantly higher than GE's 21.4%, and returned $5 billion to shareholders through special dividends [7] - TransDigm's leverage is more than four times that of GE, and its pricing model has faced regulatory scrutiny [7] - TransDigm produced $1.8 billion in free cash flow, with a forward price-to-earnings (P/E) ratio of approximately 32 times [11] Investment Considerations - GE is positioned as a safer investment option, appealing to those willing to pay a premium for stability, while TransDigm attracts investors seeking higher profitability despite its debt levels [12]

Core Viewpoint - The company is facing a production slowdown of its best-selling jet due to a shortage, marking another setback in its ongoing struggle with supply-chain issues [1] Group 1 - The production of the best-selling jet has been slowed down [1] - The company is experiencing significant challenges related to supply-chain disruptions [1]

Group 1: Rio Tinto - Rio Tinto reported a full-year underlying EBITDA of $25.36 billion, exceeding analyst estimates of $24.72 billion, driven by strong copper and aluminum production [2][9] - The company's underlying profit reached $10.87 billion, slightly above the expected $10.81 billion, while net income of $10 billion fell short of the forecast of $10.7 billion [2][9] - Rio Tinto maintained its output and sales guidance, indicating stability in its core iron ore and copper operations, and expects exploration and evaluation expenses to reach approximately $0.8 billion in 2026 [3] Group 2: Airbus - Airbus reported mixed Q4 2025 results, with revenue of €25.98 billion missing the estimate of €26.32 billion, although adjusted EBIT for the quarter was €2.98 billion, surpassing the €2.85 billion estimate [4][9] - The company expects to deliver approximately 870 planes in 2026, below the analyst consensus of 896, primarily due to ongoing engine delivery issues [5][9] - Airbus lowered its 2026 adjusted EBIT forecast to €7.5 billion and free cash flow target to €4.5 billion, both significantly below previous market projections [5] Group 3: JPMorgan Chase - JPMorgan Chase is reportedly in discussions to provide banking services for President Trump's newly established "Board of Peace," which aims to support a $5 billion reconstruction fund for Gaza [6][9] Group 4: Capstone Copper - Capstone Copper faced a setback as CIBC analysts downgraded the stock's rating to Neutral and reduced its price target to C$16 from C$20, citing concerns over deferred production targets and rising inflationary costs [7][9]

Core Viewpoint - Apollo Global Management's CEO Marc Rowan denies any business or personal relationship with Jeffrey Epstein, amidst ongoing scrutiny related to Epstein's past activities and correspondence with Apollo executives [1]. Company Statements - Apollo stated that neither Marc Rowan nor any other employee, except for Leon Black, had a relationship with Epstein [1]. - The company emphasized that the recent documents do not accuse Apollo or its executives of engaging in or being aware of Epstein's illicit activities [1]. - Apollo's response was prompted by teachers' unions requesting an SEC investigation into what they believe are misleading statements made by Apollo to its investors [1]. Historical Context - Leon Black, a co-founder of Apollo, left the company in early 2021 following a review of his ties to Epstein, which cleared him of wrongdoing [1]. - The review indicated that while Black attempted to introduce Epstein to his co-founders, no one else at Apollo seriously considered hiring Epstein [1]. Recent Developments - New documents reveal correspondence between Rowan's office and Epstein's office regarding at least five scheduled meetings, although it remains unverified if these meetings occurred [1]. - Apollo clarified that in certain instances, Rowan and other employees provided information to Epstein related to tax work for Black [1]. - Apollo stated that Epstein's attempts to work with the co-founders were declined consistently [1]. Broader Implications - The release of Epstein-related documents has led to increased scrutiny of Apollo's top officials, particularly in light of Epstein's past convictions and the ongoing fallout from his death [1]. - The American Federation of Teachers and the American Association of University Professors have expressed concerns regarding the implications of these documents for Apollo's leadership [1].

Boeing Company (NYSE:BA) shares were little changed early Wednesday as investors weighed an FTC consent order setting conditions for its planned Spirit AeroSystems deal alongside Air Astana’s newly finalized order for up to 15 787-9 Dreamliners.On Tuesday, the Federal Trade Commission finalized conditions tied to its planned acquisition of Spirit AeroSystems Holdings Inc.The Federal Trade Commission confirmed a “consent” agreement that settles antitrust concerns tied to the transaction.Following a public co ...

Core Insights - Carillon Tower Advisers reported that small-cap stocks showed marginal gains in Q4 2025, with the Russell 2000 Growth Index returning 13.01% and the Russell 2000 Value Index gaining 12.58% [1] - The firm anticipates a favorable year for equity markets in 2026, highlighting potential opportunities in sectors such as Cyclicals, Healthcare, Information Technology, Financials, and Consumer spending [1] Company Overview: Woodward, Inc. (NASDAQ:WWD) - Woodward, Inc. is a leading manufacturer of control solutions for aerospace and industrial markets, with a market capitalization of $23.226 billion [2] - The stock closed at $387.12 per share on February 17, 2026, with a one-month return of 15.41% and a 102.08% increase over the past twelve months [2] - Woodward's strong performance in 2025 was driven by its aerospace aftermarket vertical, with expectations for increased production rates from large airframe OEMs in 2026 [3] Investment Sentiment - Woodward, Inc. was held by 52 hedge fund portfolios at the end of Q3 2025, a slight decrease from 54 in the previous quarter [4] - While Woodward is recognized for its potential, the company is not among the 30 most popular stocks among hedge funds, with some analysts suggesting that certain AI stocks may offer greater upside potential [4]

Group 1 - UBS raised its price target on Howmet Aerospace Inc. to $260 from $228 while maintaining a Neutral rating [1] - Howmet has achieved record EBITDA margins and incremental gains due to pricing strength, increased content per aircraft, and volume growth, despite higher headcount and operational complexity [1] - Aerospace growth is expected to accelerate by 2026, driven by Boeing's 737 MAX production recovery and increased widebody output, with robust spare parts demand and emerging gas turbine power demand contributing to revenue growth [2] Group 2 - UBS acknowledged underestimating the valuation multiple investors assign to Howmet and sees upside to consensus estimates, but believes much of the upside is already priced in at 36 times projected 2026 EBITDA [3] - Achieving parity with GE Aerospace's valuation would require approximately a 40% EBITDA margin, indicating significantly higher earnings than current consensus forecasts [3] - UBS maintained its Neutral stance on Howmet Aerospace due to the high valuation multiple [3]

US FTC finalizes consent order in Boeing acquisition of Spirit AeroSystems | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]The logo of Boeing is seen at the 55th International Paris Airshow at Le Bourget Airport near Paris, France, June 20, 2025. REUTERS/Benoit Tessier/Pool [Purchase Licensing Rights, opens new tab]- Companies[Boeing Co]FollowWASHINGTON, Feb 17 (Reuters) - The U.S. Federal Trade Commission on Tuesday said it finali ...

Joby Aviation electric air taxi flies over San Francisco with Golden Gate Bridge in background. Key Points Toyota has deployed a team of engineers to Joby's facilities to implement the Toyota Production System to improve manufacturing efficiency. Joby recently secured capital to fund operations through the certification phase and support the expansion of its production capabilities. The company is shifting from a research startup to an industrial manufacturer with a clear path toward commercial passeng ...

BAYSHORE, N.Y. & RIDGELAND, Miss.--(BUSINESS WIRE)--Tenax Aerospace Acquisition, LLC ("Tenax†) and Air Industries Group ("Air†) (NYSE American: AIRI) jointly announced today that they have entered into an Agreement and Plan of Merger ("Merger Agreement†) to combine Tenax's special mission aviation business with Air's precision aerospace manufacturing business. The merging of the companies will create a larger and more diversified company well-positioned to serve the needs of their government an. ...