What We're Reading

ARTIFICIAL INTELLIGENCE QUICKLY ENTERING AEROSPACE MANUFACTURING

MRO Network - April 2, 2018

“More than 80% of leading executives in aerospace and defense companies expect to see artificial intelligence (AI) systems working alongside their human employees in just the next few years, according to the latest annual edition of Accenture’s Technology Vision report. What is more, Accenture and some of its top-tier aerospace clients already are using AI systems in forecasting and other decision-making processes, freeing up labor to be re-tasked for other projects. The rate of adoption is catching even the consultants off guard.”
Read the full article here

ADS-B WILL BRING RECKONING TO PREOWNED BIZJET MARKET

AIN Online - March 19, 2018

“With the U.S. ADS-B Out compliance deadline looming, “we’re about 18 months from a significant reckoning in the preowned business jet market due to obsolescence,” Mesinger Jet Sales president and CEO Jay Mesinger said this morning at the NBAA Business Aircraft Finance, Registration, and Legal Conference in Fort Myers, Florida.”
Read the full article here

MARINES’ LOVE AFFAIR WITH 3D PRINTING: SMALL IS CHEAP, & BEAUTIFUL

Breaking Defense - March 12, 2018

“Why are the Marines in love with 3D printing? Like most romances, it starts with the small things, things too small for the conventional supply system to manage, like a two-cent plastic button that preempts a $11,000 repair. Big defense contractors, take notice.”
Read the full article here

THE DEPARTMENT OF CYBER?

FCW - April 3, 2018

“Policymakers and members of Congress have increasingly called for a "whole of government" response to cybersecurity threats, including foreign election meddling and critical infrastructure protection, and a formal, unified cyber doctrine to govern U.S. policy. One idea – that of a single, consolidated agency with authority over most civilian cyber operations – is garnering increased attention from both nation states and policy analysts.”
Read the full article here

Public Markets

Perspective on Public Markets1*

*Circles indicate median TEV/2018E EBITDA
Current stock prices in USD as of 3/31/18
Aircraft OEMs: BA, BBD.B, EADS, ERJ
Aerospace Manufacturing 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

Recent M&A Transactions

Recent Transactions Include2,3*

*Outline indicates disclosed enterprise values in millions USD, unless denoted with a "B" (billion)

1.    FactSet
2.    Mergermarket