A Boeing 737 Southwest Airlines passenger aircraft pictured at LaGuardia Airport in New York on Feb. 22, 2026. Boeing and Vertiv were among the top stocks bought by hedge and mutual-fund managers so far this year. - Charly Triballeau/Agence France-Presse/Getty Images Industrials, financials and a solidly-performing AI pick and shovel made up a handful of companies that mutual funds and hedge funds have been in lockstep agreement on in early 2026. That’s according to Goldman Sachs strategists, who analyze ...

Group 1 - Vietnamese airlines announced deals to purchase nearly 100 Boeing aircraft during a visit by the head of Vietnam's Communist Party, To Lam, to Washington, D.C. [1] - Vietnam Airlines finalized an agreement to purchase 50 Boeing 737 MAX jets for $8 billion, a deal first announced in 2023 [2] - Sun PhuQuoc Airways signed an agreement to purchase 40 Boeing 787 Dreamliners for $22.5 billion, marking Vietnam's largest wide-body aircraft order to date [3] - VietJet agreed to acquire six Boeing 737 jets through a financing agreement worth $965 million [4] Group 2 - The aircraft purchases are part of a strategy to support long-haul expansion and promote Phu Quoc as an international destination [4] - VietJet's agreement is aimed at diversifying international funding sources and strengthening its financial capacity [5]

Industry Overview - The aerospace and defense sector experienced significant growth, with military spending increases under the Trump administration contributing to a nearly 9% year-to-date advance through early February 2026 [1] - The sector is currently ranked 2 out of 16 Zacks Ranked Sectors, indicating strong performance and momentum [1] Company Performance - FTAI Aviation has emerged as a leading stock in the aerospace sector, blending operational excellence with timely innovation [2] - Over the past year, FTAI shares surged over 170%, driven by high demand for engines and sustained growth in the aerospace and defense sector [3] - The company's unique positioning in high-demand engine aftermarket services and emerging opportunities in power generation for AI data centers contributed to its remarkable gains [3] Market Dynamics - The aerospace and defense industry benefited from increasing global defense budgets, recovery in commercial air travel, and technological advancements [5] - U.S. defense spending increased amid geopolitical tensions, while commercial aviation saw a boost from pent-up demand and fleet modernization [6] - The industry's economic impact exceeded $995 billion, highlighting its resilience in a volatile macro environment [6] Strategic Initiatives - FTAI capitalized on market trends by focusing on CFM56 and V2500 engines, which are essential for narrowbody aircraft [7] - The Aviation Leasing segment experienced high utilization and pricing power, while the Aerospace Products division delivered high-margin services in a supply-constrained market [8] - FTAI's strategic pivot into high-growth areas, such as adapting CFM56 engines for turbine power generation, addressed critical energy needs for AI data centers [9][10] Financial Outlook - FTAI increased its dividend to $0.35 per share, reflecting confidence in future earnings growth, with record orders validating the scalability of its business model [11] - The company's asset-light approach generated strong cash flows, supporting shareholder returns and reinvestment [11] - Upcoming Q4 2025 earnings report is expected to show consensus EPS estimates around $1.22, indicating over 45% growth compared to the prior-year quarter, with revenue projections supporting continued expansion [12]

Core Viewpoint - Boeing's plans to increase jetliner production and its outlook for improving free cash flow will be significant topics for analysts and investors during the fourth-quarter report [1] Group 1 - Boeing is expected to provide insights on its strategy to ramp up jetliner production [1] - The company aims to enhance its free cash flow in the upcoming years, which will be closely monitored by stakeholders [1]

Core Insights - FTAI Aviation's recent partnerships with Palantir and GE Aerospace are enhancing its growth prospects significantly [1][4][6] Company Overview - FTAI Aviation specializes in owning and maintaining aircraft engines for airlines, cargo companies, and leasing companies, providing a cost-effective solution for engine maintenance [2] - The company has a market capitalization of $30 billion and has seen its stock price increase by 219% over the past year [3][1] Strategic Partnerships - FTAI has established a multiyear strategic partnership with GE Aerospace, securing OEM replacement parts, thrust performance upgrades, and component repair services [4] - The partnership with Palantir focuses on utilizing AI technology to enhance production turnaround times and improve unit economics, aiming for cost savings for customers globally [6][8] Market Dynamics - GE Aerospace has extended the timeline for expected declines in CFM56 shop visits from 2025 to 2027 due to strong airline demand, benefiting FTAI [5] - FTAI Power, a new business unit, aims to convert CFM56 engines into power turbines for data centers, with a target of producing over 100 units annually [6][7] Financial Metrics - FTAI Aviation is currently trading at 43 times forward earnings, indicating a premium valuation, but the growth potential in both aircraft engine servicing and FTAI Power is substantial [8]

Core Insights - Daedalus Aviation Corp. has secured a $140 million contract with the Department of Homeland Security (DHS) to provide aircraft for deportation activities, marking a significant opportunity for the company in the aviation industry [14][17]. - The company has registered four Boeing 737-700 aircraft previously used by Avelo Airlines, which has exited the deportation business due to financial pressures [6][17]. - Daedalus operates without scheduled services or direct consumer marketing, which insulates it from the public backlash faced by consumer-facing airlines like Avelo [8][17]. Company Overview - Daedalus is based in Arlington, Virginia, and was formed in 2024, with William Allen Walters III as its president [10][17]. - The company's mission focuses on providing "precision aviation for critical missions," including government-directed evacuations, and it has access to both narrow- and widebody aircraft [10][17]. - The aircraft acquired by Daedalus are between 17 and 22 years old and were previously owned by Genesis Aircraft Services and Aero Capital Solutions [9][17]. Industry Context - The aviation industry is facing logistical challenges due to Trump's immigration policies, which have led to consumer-facing airlines like Avelo distancing themselves from deportation flights [2][17]. - The DHS has confirmed that the aircraft acquired through Daedalus will support multi-use missions, including the removal of criminal illegal aliens, indicating a shift in operational strategy for deportation flights [12][14][17]. - In the previous year, ICE deported over 300,000 individuals, falling short of its internal goal of approximately 1 million deportations, highlighting the ongoing demand for efficient transportation solutions in this sector [15][17].

Group 1 - Apollo Global Management, Inc. is exploring a potential sale of its aviation company, Atlas Air Worldwide Holdings Inc., with a valuation target of over $12 billion, including debt [1][2] - The aircraft leasing sector has seen increased consolidation, highlighted by a $7.4 billion sale of Air Lease Corp. in September [2] - In 2022, Apollo Global Management acquired Atlas Air for approximately $5.2 billion, which also included debt [3] Group 2 - Apollo Global Management has a long-standing investment presence in France, with around €14 billion invested in French companies over more than two decades [3] - The company specializes in various investment sectors, including credit, private equity, infrastructure, secondaries, and real estate markets [4]

Group 1 - The Department of Homeland Security (DHS) has confirmed a contract to purchase six Boeing 737 planes for deportations by U.S. Immigration and Customs Enforcement, totaling nearly $140 million [1] - The CEO and CFO of Daedalus Aviation, the company involved in the contract, also hold identical roles in Salus Worldwide Solutions, which has a nearly $1 billion contract with DHS for supporting voluntary "self-deportation" [2] - The Trump administration has set a goal of deporting 1 million immigrants within the current year [2]

Core Insights - The Department of Homeland Security plans to allocate nearly $140 million for the acquisition of a fleet of Boeing 737s intended for deportation purposes [1] Group 1 - The funding amount of close to $140 million indicates a significant investment in aviation resources for immigration enforcement [1] - The decision to purchase Boeing 737s suggests a strategic move to enhance operational capabilities in deportation efforts [1]

Core Viewpoint - Airbus is facing significant challenges due to a software recall affecting approximately 6,000 A320 family jets and a quality issue with metal panels, leading to a notable decline in share prices and a reduction in delivery targets for 2025 [1][2][5]. Group 1: Quality Issues and Software Recall - Airbus identified a quality issue with metal panels on some A320 aircraft, affecting up to 628 planes, with over 100 already delivered to airlines [6][7]. - The software recall was initiated after a JetBlue A320 experienced a malfunction, resulting in an emergency airworthiness directive from Europe's aviation safety agency [3][4]. - Airbus stated that the quality issue was not a safety concern, but inspections are being conducted on all potentially affected aircraft [7]. Group 2: Financial Impact and Market Reaction - Following the news of the quality issue, Airbus shares dropped as much as 11%, marking the largest decline since April, although they recovered slightly with a 4% increase on Wednesday [1][2]. - The company has reduced its 2025 delivery target from 820 to 790 aircraft, which has somewhat reassured investors despite the overall share price being down about 8% over the past month [2][8]. - Airbus is set to report November's delivery figures soon, and despite recent challenges, its share price is still up nearly 24% for the year [9]. Group 3: Competitive Landscape - The A320 has become the most popular commercial airliner, surpassing the Boeing 737 this year, amid safety concerns surrounding Boeing [9]. - Boeing's stock has shown positive momentum, with an 8% increase following announcements of expected delivery increases next year, indicating a competitive recovery [10].