Weekly Wingman – Conference Season Highlighted by BA

Research evidence excerpt

Weekly Wingman – Conference Season Highlighted by BA

Equity Research

Multi Company Update — May 26, 2026

Aerospace & Defense

Government Services

Space

Weekly Wingman – Conference Season

Highlighted by BA

Our Call David Strauss

Next week highlighted by BA conference appearance where we expect update to Q2 Equity Analyst | Wells Fargo Securities, LLC

David.Strauss@wellsfargo.com | 212-214-8052

delivery expectations (72 QTD vs. 143 in Q1) along with HEI earnings.

Joshua Korn

Associate Equity Analyst | Wells Fargo Securities, LLC

Up Next: Still more earnings with HEI and ARXS on Weds after close. For HEI, our Q2 EPS Joshua.T.Korn@wellsfargo.com | 212-214-6421

estimate at $1.37 is ahead of consensus at $1.33. We forecast 17% EBIT growth on 14% Ben Tomick

revenue growth (9% organic) and 65bps higher YOY margin. Conference away highlighted Associate Equity Analyst | Wells Fargo Securities, LLC

by BA/HWM/LMT/NOC. Ben.Tomick@wellsfargo.com | 332-295-4224

Global flight schedules cut further. May schedules now indicate -1% global flight hours

(vs. +1-2% a few weeks ago) while June at +1% (vs. +3%). Middle East (~4% of total global

flights) seen 28% lower YoY in May and 11% in June.

Aero: Despite Q1 results ahead, aero has underperformed by ~9% on average (HEI/HWM

best; WWD/RTX worst). Estimates for 2026-27 have generally moved up on Q1 upside

with ATI/HWM/WWD up most. Overall, we estimate aero aftermarket multiples have

compressed ~15% since Feb high, now trading at 18x EV/EBITDA and 28x PE (2028).

Results: ~20% Q1 aftermarket growth on average, ahead of high teens rate in 2025. GE

lowered its annual departures forecast to flat-LSD from MSD. Mid-teens Q1 OE growth,

higher from 5-10% in 2025, with BA and Airbus maintaining their delivery guidance and