Our Take on Earnings

研报英文原文证据摘录

Our Take on Earnings

Equity Research

Multi Company Update — July 8, 2026

Aerospace & Defense

Government Services

Space

Favor ATI/HXL/RR/SAF in Aero; GD/LMT in Defense

Our Call David Strauss

Improved aero OE structural demand; AM aided by easy comp. Still see 2H AM decel, but Equity Analyst | Wells Fargo Securities, LLC

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

outlook improved. See BA Q2 FCF upside, FY unchanged. For Europe, see guidance raises

Joshua Kornfor RR/SAF.

Associate Equity Analyst | Wells Fargo Securities, LLC

Defense growth improves, forward expectations unlikely move up yet. Joshua.T.Korn@wellsfargo.com | 212-214-6421

Ben Tomick

Aero AM: While schedules don't yet indicate airline capacity additions, we expect AssociateBen.Tomick@wellsfargo.comEquity Analyst | Wells| 332-295-4224Fargo Securities, LLC

companies to signal an improved 2H aftermarket outlook on lower jet fuel. Specifically,

we see Q2 AM growth mid to high teens followed by HSD-LDD in 2H. This likely already

reflected in stocks given run up to new highs.

Aero OE: After several weak quarters, we expect ATI/CRS to report improved structural

demand. We see CRS guiding FY27 EBIT to ~$900M on 15% SAO growth (~20% A&D)

with ~50% incrementals. We are ahead on HXL on A350 growth.

GE: We are ahead on ~20% services growth (3% seq) and mid 20% OE growth. We expect

GE to raise its services forecast for the year by $0.5-1B implying 2H growth in low to mid-

teens. On this, we expect GE to raise its FY EBIT guidance range to $10.5-10.9B and EPS

to $7.60-7.90.

BA: We see upside to Q2 FCF, although expect unchanged FY FCF range given SPEEA

uncertainty and remaining 777X cert risk. We forecast Q2 FCF improving to $0.6B on

higher deliveries and neutral working capital. We view 777X cert timing and delivery and