Aerospace, Defense & Government Services | Industry Update Spring 2026
“Herd” on the Street
During the winter and spring of 2026, the D.A. Davidson | MCF International AD&GS team attended several industry events and engaged in numerous conversations with key industry constituents across strategic and private equity acquirors. The following represents a summary of Davidson’s Bison “Herd” on the Street.
Aerospace
GE Aerospace Commits a Second Consecutive $1 Billion to U.S. Manufacturing
- GE Aerospace announced plans to invest an additional $1 billion in U.S. manufacturing in 2026, which is its second consecutive $1 billion annual investment, to accelerate aircraft engine deliveries, expand parts production, and strengthen defense manufacturing
–The investment will support facilities across more than 30 communities in 17 states and includes plans to hire 5,000 U.S. workers, reinforcing domestic aerospace capacity
Beyond the Cycle: Aerospace Shifts to Infrastructure-Grade Status
- Infrastructure investors are increasingly acquiring aerospace infrastructure assets like aircraft cargo fleets, maintenance, and fixed‑base operators
–This structural shift signals a fundamental re‑rating of aerospace businesses as stable, yield‑oriented infrastructure assets rather than traditional industrial cyclicals
Skywise as the Digital Backbone of Global Aviation
- Airbus is using its Skywise platform to re‑imagine aviation as a fully data‑driven ecosystem, integrating aircraft, operations, and maintenance through real‑time analytics and artificial intelligence (“AI”)
- Connecting airlines, airports, original equipment manufacturers (“OEMs”), and partners on a single digital backbone, enables Skywise to improve operational efficiency, reduce downtime and emissions, and accelerate innovation across the aviation value chain
Spirit Airlines Winds Down Operations After Financing Talks Collapse
- Spirit Airlines ceased operations immediately after rescue talks over a ~$500 million U.S. government financing package collapsed, grounding its fleet and canceling all remaining flights. The shutdown followed Spirit’s failure to secure sufficient liquidity to exit Chapter 11, with surging jet fuel prices and limited bondholder support overwhelming its restructuring plan
–Spirit’s collapse marks the end of a 30+ year ultra‑low‑cost carrier pioneer, following failed mergers, repeated bankruptcies, and sustained cost pressures
1Q 2026 Airbus and Boeing Deliveries
Sources: Airbus, Boeing, and other publicly available resources
Global Defense
RTX Secures Major Interceptor Order to Support Ukraine’s Air Defense
- Ukraine signed a $3.7 billion deal with RTX to procure Guidance Enhanced Missile–Tactical interceptors to replenish and expand its Patriot air defense network against ballistic and other aerial threats
–The missiles will be produced with support from RTX’s German manufacturing line, as Kyiv looks to sustain and strengthen its Patriot capabilities amid ongoing attacks
Europe Accelerates Missile Output Through New Industrial Partnerships
- German defense firm Rheinmetall announced it will begin producing cruise missiles for the first time through a planned joint venture with Dutch defense company Destinus, combining Rheinmetall’s large‑scale manufacturing capabilities with Destinus’ missile design expertise
- The move reflects Europe’s push to scale indigenous missile production, citing recent conflicts that underscore growing demand for high‑volume, cost‑effective interception systems
India Builds Domestic Engine Maintenance, Repair, and Overhaul (“MRO”) Capacity for the Tejas Fleet
- India is establishing a dedicated engine MRO depot for its Tejas light combat aircraft to improve fleet availability and reduce dependence on overseas support
–The facility is intended to speed up engine servicing, lower lifecycle costs, and support the Indian Air Force’s expanding Tejas fleet as induction accelerates
Canada Accelerates CC‑330 Husky Modernization with CAD $1.5 Billion Award
- Canada awarded approximately CAD $1.5 billion in defense contracts to L3Harris and Airbus to support and modernize its next‑generation CC‑330 Husky military aircraft fleet, which is a key part of its air‑to‑air refueling and strategic transport capabilities
–L3Harris secured CAD $1.1 billion for maintenance and in‑service support, while Airbus received CAD $374 million for engineering and airworthiness tied to Canada’s efforts
A Networked Approach to European Air and Missile Defense
- The European Sky Shield Initiative (“ESSI”) is a multinational effort led by Germany to create an integrated, layered air and missile defense network across Europe by pooling procurement, sensors, interceptors, and command‑and‑control systems
–ESSI links national capabilities to defend participating countries against drones, cruise missiles, ballistic missiles, and aircraft more efficiently than standalone national systems
Global Defense Tech Venture Capital Exit Count
- Early 1Q 2026 activity indicates public listings, buyouts, and acquisitions are on pace to exceed historical annual exit levels
Sources: PitchBook and other publicly available resources.
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Dr Christoph Stoecker
Vice Chairman & General Counsel