FY27 Budget: DoW "Maxxing" Procurement In Key Areas - Athena Update

研报英文原文证据摘录

FY27 Budget: DoW "Maxxing" Procurement In Key Areas - Athena Update

TD Securities (USA) LLC POLICY NOTE

May 11, 2026

■WRG Aerospace & Defense FY27 Budget: DoW "Maxxing" Procurement In

Key Areas - Athena Update

Roman Schweizer THE TD COWEN INSIGHT

202 868 5305

We've updated our Athena database to reflect the War Department's FY27 budget and FYDP

roman.schweizer@tdsecurities.com

for 9 cos. with the largest acquisition programs. We use this model to look at the five-year

Liz Huseynov outlook and trends for major company programs. DoW's priorities seem clear: production

646 562 1421 surge in aircraft, munitions & shipbuilding - Army shows major priority swings - space boost

liz.huseynov@tdsecurities.com

significant, but winners not clearcut.

Bottom Line Up Front

We've updated our proprietary Athena model that outlines DoW spending at the line-item level

(dollars & quantity) in R&D and procurement across the five-year Future Years Defense Plan.

Please contact us for the dataset.

The FY27 budget request reinforces many of our observations in last DEC's Ahead of the Curve

(Remaking The Arsenal of Freedom & Military-Tech Fusion - Ahead of the Curve). We still see

growth in major categories that will benefit both existing defense cos. and emerging "military

tech-fusion" cos. We understand the current debate about the outlook for top-line defense

spending may not be resolved for months, we think there are notable category and program

spending shifts that will take place in the budget regardless of the topline.

Sector Observations

■Fighter Fest: F-35 & F-15 production boosted, F-47 production ramp still unclear, F/A-XX

remains a mystery.

■Munitions "Maxxing": Current weapons surge, but next-gen weapons (i.e., hypersonics &

AIM-260 JATM) also ramping.