US Aerospace & Defense: From A to D - earnings kicks off with GE

Research evidence excerpt

US Aerospace & Defense: From A to D - earnings kicks off with GE

Global Research

13 July 2026ab

US Aerospace & Defense Equities

AmericasFrom A to D - earnings kicks off with GE

Aerospace

Gavin Parsons

We expect strong results across most of our coverage Analyst

In our weekly note, we summarize top topics, notes we've published, MAX/787 gavin.parsons@ubs.com

tracking, and more. +1-212-713 2389

Joao Santos Top topics / sentiment / most discussed:

Associate Analyst

GE Aerospace leads off A&D earnings this Thursday morning. We expect a joao.santos@ubs.com

beat and raise, and see $2.66bn of EBIT. In our preview we wrote we expect +1-212-713 1437

new full-year EBIT guidance of $10.25-10.55bn, which based on investor Nicholas Labbadia

feedback is a bit below expectations. The bar is high yet we have heard a lot of Associate Analyst

skepticism whether results can be 'good enough' to potentially push the stock nicholas.labbadia@ubs.com

to an even higher record valuation. Results will receive a great deal of scrutiny, +1-212-713 5573

but we believe all signs still point to strong aftermarket demand and outlook,

even with oil bouncing after recent Middle East flare-ups.

Airlines continue to plan for flights to return to growth (Figure 1), which we

believe has/will support aftermarket into the strong summer flying season

before generally decelerating in 2027 as retirements begin to increase.

Delta Air Lines maintenance material & repair grew 17% in 2Q (Figure 2),

which is lumpy but directionally correlates with aero aftermarket growth

rates. DAL also called out 3p MRO revenue on track to grow 50% this year

with the potential to more than double in future years reflecting strong

demand, particularly on legacy platforms (though some of this is

idiosyncratic).