Key Takeaways

  • The aerospace and defense industry is gaining welcome stability after several uneven years.
  • Record aircraft backlogs, rising defense spending, and supply chains showing signs of recovery.
  • Airlines are flying more passengers and long-haul travel has continued to rebound.
Boeing Airbus Spirit AeroSystems

Strategic Implications

This positive outlook may indicate a strengthening industry foundation heading into 2026. Rising defense spending and supply chain improvements could benefit major contractors. However, challenges persist, including Boeing’s ability to meet delivery targets and labor shortages. The industry’s stability is also dependent on the success of emerging technologies, such as autonomous systems.