Aerospace & Defense: 33rd Annual Industrials, Transport & Airlines Conference A&D Takeaways

Research evidence excerpt

Aerospace & Defense: 33rd Annual Industrials, Transport & Airlines Conference A&D Takeaways

AerCap

Peter Juhas, Chief Financial Officer

• Strong demand for our assets despite recent geopolitical events. AerCap

noted that its business continues to see strong, enduring demand across the

portfolio of commercial aircraft, engines, and helicopters. While the environment is

dynamic, the company anticipates that oil remaining above $100/bl for the next six

months would significantly pressure airlines and likely lead to accelerated

retirements. That said, the company is confident it has the balance sheet to manage

this appropriately, as well as the largest fleet of new-technology aircraft available,

as more fuel-efficient flying becomes a higher priority. Maintain Buy.

AeroVironment

Wahid Nawabi, Chief Executive Officer

Sean Woodward, Chief Financial Officer

• DAWG is a step-function change in funding and strategy for Unmanned

Systems procurement. AVAV was notably bullish on the coming opportunity

should the Defense Autonomous Warfare Group (DAWG) received the >$50bn in

funding requested in the FY27 Budget. The company noted that, although the

funding was requested through reconciliation the signal is clear – the DoW wants to

have a more centralized, strategic, and coordinated drone procurement effort, which

is a positive for AVAV’s Unmanned Systems hardware. Maintain Buy.

BETA

Herman Cueto, Chief Financial Officer

Devon Rothman, Head of Investor Relations

• Actions speak louder than words. BETA remains laser focused on ensuring the

company is ready to deliver on their commitments across customers, end-markets,

and partners. BETA is bullish on their recent eVTOL Integration Pilot Program (eIPP)