Amazon disclosed a new stake in Beta Technologies, the electric aircraft and propulsion maker, sending the stock higher on Wednesday after a regulatory filing late Tuesday revealed the investment. The... ...

TD Cowen 47th Annual Aerospace & Defense Conference February 11, 2026 I N T R O D U C T I O N Steve Gitlin Vice President, Investor relations 2 This presentation may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be ide ...

Karman Holdings Inc. (NYSE:KRMN) is one of the new stocks on the rise. On January 28, KeyBanc analyst Michael Leshock raised the price target for Karman to $122 from $80 with an Overweight rating. This adjustment was made as part of a broader sector update. The firm pointed to a surge in momentum within the space and defense tech industries, projecting that an ideal macroeconomic environment will persist through 2026. This favorable backdrop is expected to unlock substantial growth opportunities and lead t ...

Market Overview - The market in 2025 was characterized by extreme volatility, with small caps experiencing a significant rally followed by a sharp retreat due to various uncertainties, including government policy and AI-related concerns [4][5] - Small caps outperformed large caps in earnings growth for the first time in over a decade during the third quarter, indicating an improving earnings backdrop for this asset class [5][6] - Despite challenges, the U.S. economy showed solid growth, allowing the Federal Reserve to continue its rate-cutting cycle [4] Performance Overview - The ClearBridge Small Cap Growth Strategy underperformed the Russell 2000 Growth Index in the fourth quarter, primarily due to disappointing earnings in the IT sector and a strong rally in biotechnology stocks [6][7] - The biotechnology sector saw a significant rebound, with the Russell 2000 Growth Biotech Index returning 28.1%, highlighting the challenges faced by other sectors [6] - The health care sector contributed positively to performance, with notable individual performers like Penumbra and Insmed [8][19] Portfolio Positioning - In 2025, the company established 29 new investments and exited 19 positions, indicating an active year for idea generation [10][11] - New investments included Protagonist Therapeutics, Simpson Manufacturing Company, BETA Technologies, and Dyne Therapeutics, each with strong growth potential in their respective fields [11][22] - The company maintained a disciplined approach to selling positions where fundamentals changed or catalysts were lacking [10] Outlook - The outlook for small cap growth stocks in 2026 is optimistic, with expectations for a broadening of growth leadership across various industries [13][14] - The productivity benefits of AI are anticipated to become more visible, potentially benefiting companies leveraging AI for efficiency and new product offerings [14] - Capital markets are showing signs of improvement, with increased IPO activity and M&A volumes, creating a favorable environment for small cap investments [15][16]

Core Viewpoint - Wartsila has received mixed ratings from analysts, with a consensus rating of "Reduce" based on recent reports, indicating cautious sentiment towards the stock [1]. Financial Performance - Wartsila reported earnings of $0.07 per share (EPS) for the quarter ending October 28, with revenue of $1.91 billion, falling short of analyst estimates of $1.99 billion [4]. - The company has a net margin of 8.89% and a return on equity of 23.64% [4]. - Analysts forecast an EPS of 0.18 for the current year [4]. Stock Performance - Wartsila's stock increased by 1.5%, reaching a 52-week high of $7.42 during trading, with a closing price of $7.31 prior to this peak [2][8]. - The stock's 50-day moving average price is $6.73, while the 200-day moving average price is $5.96 [2][3]. Company Overview - Wartsila is a Finnish technology company specializing in sustainable solutions for the marine and energy sectors, founded in 1834 and headquartered in Helsinki, Finland [5]. - The company designs, manufactures, and services equipment including marine engines, propulsion systems, and power plants [5]. - Wartsila operates in over 80 countries, serving shipowners, shipyards, power producers, and utilities globally [6]. Financial Ratios - The company has a current ratio of 1.28, a quick ratio of 0.90, and a debt-to-equity ratio of 0.12 [2][3]. - The price-to-earnings (P/E) ratio stands at 33.73, with a beta of 1.22 [2].

Market Performance - The U.S. stock market indices showed mixed results, with the S&P 500 increasing by approximately 0.1%, the Nasdaq Composite decreasing by 0.3%, and the Dow Jones Industrial Average rising by 0.7% [1] Investment Strategy - In uncertain market conditions, it is suggested that investors consider low-leverage stocks as safer investment options. Recommended companies include CSW Industrials, Jones Lang LaSalle, Hecla Mining, Safran SA, and Siemens Energy, all of which exhibit low leverage [2][10] Understanding Leverage - Leverage in finance refers to borrowing capital for operations and expansion, typically through debt financing. While debt can facilitate growth, excessive reliance on it can lead to significant risks [4][5] Debt-to-Equity Ratio - The debt-to-equity ratio is a key metric for assessing a company's financial risk, with a lower ratio indicating better solvency. Investors are encouraged to focus on stocks with low debt-to-equity ratios to mitigate risks during economic downturns [7][9] Company Highlights - **CSW Industrials**: Recently completed a $650 million acquisition to enhance its HVAC and refrigeration market presence. The Zacks Consensus Estimate predicts a 23.5% sales increase for fiscal 2026 [15][16] - **Jones Lang LaSalle**: Reported a 29% year-over-year increase in adjusted earnings per share and a 10% revenue growth in local currency for Q3 2025. The Zacks Consensus Estimate suggests a 10.3% sales improvement for 2025 [17][18] - **Hecla Mining**: Achieved a 65.4% revenue increase and a 204.4% gross profit surge in Q3 2025. The Zacks Consensus Estimate indicates a 33.3% sales growth for 2025 [19][20] - **Safran**: Announced a partnership renewal with Polytechnique Montréal to support sustainable aviation technologies, with a projected 39.9% sales improvement for 2025 [21][22] - **Siemens Energy**: Focuses on renewable energy, particularly wind power, and is set to supply gas turbines to Xcel Energy, with a 21.2% sales growth forecast for fiscal 2026 [23][24]

Core Insights - Dana Incorporated (NYSE:DAN) is recognized as one of the best small-cap EV stocks to buy according to analysts [1] - Wells Fargo lowered its price target for Dana from $22 to $21 while maintaining an Equal Weight rating [1] - UBS analyst Joseph Spak reiterated a Buy rating with a price target of $25 [3] Financial Performance - Dana reported $2.35 billion in revenue for the fiscal second quarter of 2025, a decrease of 14% year-over-year, but exceeded Wall Street estimates by $49.5 million [3] - The company's earnings per share (EPS) of $0.13 fell short of estimates by $0.03 [3] - Management raised its full-year guidance by $250 million, adjusted EBITDA by $35 million, and free cash flow by $50 million ahead of the fiscal third-quarter results expected on November 5, 2025 [2] Business Overview - Dana Incorporated specializes in energy management solutions and designs and manufactures propulsion systems for vehicles and machines across global mobility markets [4]

Group 1 - GE Aerospace has entered into a partnership and equity investment agreement with BETA Technologies to advance hybrid electric aviation, pending regulatory approval [1][3] - BETA Technologies specializes in producing electric aircraft and propulsion systems, focusing on safe and cost-efficient operations across various markets [2] - The collaboration aims to develop a hybrid electric turbogenerator for Advanced Air Mobility (AAM) applications, leveraging GE's engine expertise and BETA's advanced technology [4][8] Group 2 - GE Aerospace plans to invest $300 million in BETA, which includes the right to appoint a director to BETA's board [5][8] - GE Aerospace is currently ranked 1 (Strong Buy) by Zacks, benefiting from a growing installed base and increased utilization of engine platforms [6] - Over the past six months, GE's shares have increased by 41.6%, outperforming the industry growth of 23.3% [7]

Core Insights - Linamar Corporation reported a significant increase in free cash flow, generating $177.6 million in Q2 2025, up $110.5 million from the previous year, attributed to careful cash management [5] - The company maintained strong liquidity at $1.9 billion, reflecting a 46.7% increase from Q2 2024 [5] - Despite lower sales in the industrial segment, Linamar achieved market share growth in key products and regions within its access and agriculture businesses [1] Financial Performance - Total sales for Q2 2025 were $2,642.7 million, a decrease from $2,848.7 million in Q2 2024 [4] - Operating earnings for the industrial segment were $53.8 million, down from $154.7 million in the same quarter last year, while the mobility segment saw an increase to $152.4 million from $116.8 million [4] - Net earnings for Q2 2025 were $126.9 million, compared to $174.1 million in Q2 2024, with diluted net earnings per share decreasing to $2.12 from $2.82 [4][6] Segment Insights - The mobility segment continued to show normalized earnings growth, with normalized operating earnings increasing by 19.6% to $150.9 million [6] - Market share growth in the mobility segment was driven by new product launches, particularly in North America and Asia Pacific [2] - The industrial segment's normalized operating earnings were $103.3 million, down from $164.3 million in Q2 2024, indicating challenges despite market share gains [4][6] Shareholder Returns - Linamar repurchased 1.1 million shares year-to-date as part of its normal course issuer bid, totaling 1.8 million shares since the program's inception in November 2024 [5] - The company declared a quarterly dividend of CDN$0.29 per share, payable on or after September 9, 2025 [8] Strategic Positioning - Linamar's products remain compliant with USMCA, allowing for tariff-free access to the US market, which has been a strategic advantage amid recent tariff challenges [3] - The company is actively pursuing opportunities arising from customer-driven onshoring and potential acquisitions of distressed suppliers, supported by a strong cash position [5][3]

Core Insights - BWX Technologies reported strong Q2 2025 results, with revenue of $764.0 million, exceeding analyst estimates of $711.1 million, and non-GAAP EPS of $1.02, surpassing the consensus of $0.79 [1][2] - The company's backlog reached a record $6.0 billion, prompting an increase in revenue and earnings forecasts for 2025 [1][8] - Despite strong overall growth, challenges in commercial profit margins were noted, particularly due to raw material cost pressures [1][5] Financial Performance - Non-GAAP EPS for Q2 2025 was $1.02, a 24% increase from $0.82 in Q2 2024 [2] - GAAP revenue was $764.0 million, reflecting a 12% year-over-year growth from $681.5 million [2] - Adjusted EBITDA rose 16% to $145.9 million compared to $126.2 million in Q2 2024 [2][7] - Free cash flow significantly improved to $126.3 million from $35.5 million in Q2 2024, marking a 256.1% increase [2][7] Business Segments - BWX Technologies operates in two main segments: Government Operations and Commercial Operations [3] - Government Operations generated $589.0 million in GAAP revenue, up 9% year-over-year, with a record backlog of $4.44 billion [5] - Commercial Operations reported revenue of $176.1 million, a 24% increase from Q2 2024, but faced a 59% drop in operating income due to unfavorable project mix and increased costs [5] Strategic Developments - The acquisition of Kinectrics in May 2025 aims to enhance BWXT's capabilities in nuclear lifecycle services and radiopharmaceuticals [6] - The consolidated order backlog reached a record $6.0 billion, supported by recent acquisitions [6] - The company is expanding manufacturing capabilities, including scaling up operations at its Cambridge facility in Canada [6] Financial Outlook - Management raised its 2025 financial guidance, projecting revenue near $3.1 billion and non-GAAP EPS of $3.65–$3.75 [8] - Adjusted EBITDA is now expected to be between $565 million and $575 million, with free cash flow guidance increased to $275–$285 million [8] - Key factors to monitor include margin recovery in Commercial Operations and the integration of newly acquired businesses [8]