WHAT WE'RE READING

Aerostructures The Next Commercial Aerospace Battleground

“It looks increasingly likely that aerostructures will determine the winners and losers in the next phase of the aerospace industry evolution.”

Aviation Week 

Boeing Signs Master Supply Deals With Top-Tier Suppliers

“UTC and Rockwell’s master agreements [signed with Boeing] are just the latest in a slew of such multiyear deals that Boeing is striking with its leading suppliers.”

Aviation Week

Narrowbody Aircraft Market Is Busier Than Ever

“If there is one word that describes the state of the narrowbody market, it is “unprecedented.” Never have so many different models either entered or been prepared to enter service by so many manufacturers, and never have demand and production reached such high levels as in the past several years.”

Aviation Week

JSSI Reports Record Start to the Year for Business Aviation Flight Activity

“Average aircraft utilization of 27.97 hours for the first quarter represents the highest level during this period since 2008.”

Jet Support

Military Tackles Problem And Potential Of Drones

“Whether asset or threat, the field of drone technology is still evolving rapidly and will continue to provide both challenges and opportunities to military forces.”

Aviation Week

Will The Empire Strike Back? OTA And The Future Of Acquisition

“The rise in OTA use has opened the door to a discussion of unique scope and depth. It raises the prospect that a genuinely streamlined, faster and more open acquisition process outside of the traditional [FAR] construct can work for a diverse array of needs and drive real change and innovation.”

Defense News

PERSPECTIVE ON PUBLIC MARKETSa,b,1

Stock Price Performance – Last Twelve Months

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Median % Change (1 Month)

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Median % Change (12 Month)

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Most Significant Stock Price Movement – March 31st To April 30th

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screen_shot_2018-05-15_at_3.05.51_pm.pngIndicates median TEV / 2018E EBITDA

Recent M&A Transactions2

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a. Current stock prices in USD as of 4/30/18

b. Aircraft OEMs: BA, BBD.B, EADS, ERJ

Aerospace Supply Chain & Aftermarket Support: AIR, ARNC, ATRO, B, BBA, DCO, ESL, GKN, HEI, HRX, HXL, KAMN, KLX, MAL, MGGT, MOG.A, ROLL, SAF, SNR, SPR, TDG, TGI, WAIR, WWD

Diversified Industrial: AME, CR, CW, ETN, GE, HON, PH, RR, TXT, UTX

Defense Prime Contractors: BA, BAE, EADS, GD, HO, HII, LMT, NOC, RTN

Defense Technologies: AVAV, CHG, CMTL, COB, CUB, ESLT, FLIR, HRS, KTOS, LLL, MRCY, TDY, ULE

Government Services: BAH, CACI, CSRA, EGL, KEYW, LDOS, MANT, SAIC, VEC

Diversified Services: ACM, BAB, FLR, GIB, ICFI, JEC, KBR, SRP

1. FactSet

2. Mergermarket