Farnborough Airshow Day 2: Airbus readthroughs; CR, TXT and HEI

Research evidence excerpt

Farnborough Airshow Day 2: Airbus readthroughs; CR, TXT and HEI

July 22, 2026

desire to "rebalance the business model" to participate more in the aftermarket. We

continue to place v. low odds on engine aftermarket penetration, but we applaud the

ambition.

Other meeting takeaways

Textron continues to see solid demand in business jet portfolio with high net worth

demand accelerating, particularly through the adoption of the fractional jet model,

even with some slower conditions in the corporate side. Supply chain constraints

continue to be worked to facilitate both higher rates on the Cessna and Bell

businesses with special attention continue to be made in the engine supply from Pratt

& Whitney. The current elevated operation tempo of US forces overseas hasn't had

any impact on Bell services at this point, but there could be more as operations wind

down and assets are available for maintenance. The GOP's current press on getting a

Continuing Resolution resolved more quickly doesn't appear like it will solve the near-

term funding challenge on the MV-75, but there is still a view that a second Omnibus

request later this summer could reprogram money toward the program.

Crane management remain bullish on their outlook, particularly as it relates to the

progress on integrating their recent acquisition of PSI, which seems like an early

success story for the (relatively) new CEO. The forward look commentary on the M&A

pipeline was that it is strong as it has ever been and that the company is focusing not

just on the aerospace products market, but also on adjacent advanced technologies

that often facilitate the aerospace products market, which creates a larger aperture

for deals than might be appreciated. On aerospace, the company's pricing strategy