Defense & Aerospace Report Defense & Aerospace Report Podcast [Oct 26 ’25 Business Report]
16 snips
Oct 26, 2025 This week features Dr. “Rocket” Ron Epstein, a senior analyst at Bank of America Securities, Sash Tusa, an independent analyst focused on European defense, and Richard Aboulafia, an expert in aerospace trends. They dive into the implications of the U.S.-China trade talks, analyzing the strategic impact of Beijing's chip export ban. They also discuss the satellite merger between Airbus, Leonardo, and Thales, and Ukraine's potential acquisition of Gripen fighters, exploring its significance for Ukraine's defense strategy.
AI Snips
Chapters
Transcript
Episode notes
Earnings Drove Divergent Stock Moves
- RTX led the week driven by strong conversion of backlog into revenue across commercial and defense segments.
- Market movement was earnings-driven while the S&P stayed relatively calm with the 10-year around 4%.
Double Rearmament Lifts European Defense
- European defense stocks rallied as the war in Ukraine signaled prolonged demand and higher European funding.
- Analysts see a 'double rearmament' cycle: arming Ukraine while reequipping European forces.
Good Results Can Be Priced Already
- Companies like Thales and Safran reported strong results but shares barely moved because good performance was already priced in.
- Managements are cautious on guidance amid uncertainty about aftermarket and OE cycles next year.