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Stock Research
Magellan Aerospace could gain recurring work from Boeing's $20B Navy contract for next-generation Super Hornets (F/A-XX), since it supplied Boeing components for the predecessor F/A-18 Super Hornet. Its past work includes F-18 fuselage frames, landing-gear components and GE F414 engine components. Nothing is set in stone and what carries over is unclear, but it should be a nice win for its US facilities. x.com x.com
GE's purchase of castings maker CPP for 26 times 2027 EBITDA should benefit Magellan Aerospace, since castings are its bread and butter and external demand may shift its way with CPP absorbed. Magellan still trades at about 14 times EBITDA and did not rise on the news, though the comparison is not apples to apples. Per BNN Bloomberg, GE Aerospace is paying nearly US$12 billion. x.com
Boeing has political tailwinds the stock isn't reflecting. Trump loves the company, China just ordered 200 more planes, and talks are underway on building more defense products, yet the shares are barely moving. x.com
Boeing's margins are low because of business problems. Replying to a post flagging its roughly 357x forward P/E, the market is pricing a recovery in metrics by 2028, which is why its longer-term multiples look less extreme. x.com
Boeing, alongside GE, is preferred over the Honeywell Aerospace spin-off because it has more credibility in aerospace. Honeywell Aerospace reiterated guidance two months ago, then missed and cut its organic growth outlook by half, and its management needs time to mature. x.com
Legacy defense contractors such as Lockheed Martin, Boeing and RTX face new competition that is coming to eat their lunch. @damianplayer notes Anduril built a new Apache-launched drone weapon in six months that flies 286 miles and, in one version, hits as hard as a Hellfire missile, when defense projects used to take 20 years. An Anduril IPO is more exciting than SpaceX's. x.com
GE Aerospace earns most of its money servicing a huge installed engine base, and record air traffic keeps that base turning. Engines sell at up to 70% off, while shop visits bring up to 70% of lifetime revenue; services were about 70% of 2025's $42B revenue, with a $210B backlog. At 43x earnings versus a 37x five-year average it is not cheap, a premium backed by the end of the conglomerate discount, margins and visibility. A correction would come only with a normal general market pullback. x.com … Show more
