Defense & Aerospace Report Defense & Aerospace Report Podcast [Nov 02 ’25 Business Report]
Nov 2, 2025
This week features Dr. “Rocket” Ron Epstein, a Senior aerospace and defense equity analyst, alongside Richard Aboulafia, an aerospace consultant, and Sash Tusa, an independent research analyst. They dive into the implications of the US-China trade truce and the challenges of developing nuclear submarines for South Korea. Discussions include Boeing's $4.9 billion charge on the 777X and Airbus' improving margins. The panel also addresses the SCAF program tensions between Airbus and Dassault, and celebrates the first flights of new unmanned and supersonic aircraft.
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Episode notes
Truce, Not A Grand Bargain
- The U.S.-China agreement is a temporary truce, not a grand bargain, and decoupling will continue in key sectors.
- Richard Aboulafia emphasizes this signals a long-term strategic shift, not a quick reset to pre‑tension trade relations.
Demand Outstrips Delivery Capacity
- Demand across defense, commercial aerospace, and bizjets is strong and broadly consistent.
- Ron Epstein highlights capacity and delivery speed as the main constraints, not demand itself.
Engine Makers Wary Of Ramp Effects
- European engine makers are cautious about 2026 guidance due to margin dynamics between new engines and spares.
- Sash Tusa warns higher production may lower new‑engine margins while cutting lucrative spare‑engine revenues.