Citi | US Aerospace & Defense Chart of the Day: Survey Shows Optimism on OE Production Ramp
Summaries are public. PDF access requires an active membership; all members have the same access. Sign in
Citi's latest aerospace and defense industry pulse survey reveals strong confidence in the commercial original equipment (OE) production ramp. Across 100 surveyed suppliers, distributors and MRO service providers, respondents broadly expect commercial OE output to continue accelerating through the fourth quarter of 2026, and they identify this end market as the fastest-growing among all surveyed categories. The survey question asked how year-over-year production growth trends next quarter would compare with the current quarter, and the answers confirmed the OE segment's growth momentum.
Against this backdrop, Boeing (BA) still faces execution challenges, and market consensus may not yet be fully calibrated to them. Weighing Boeing's execution risk against Howmet Aerospace's tactical advantages, Citi designates Howmet Aerospace (HWM) as its preferred OE name. The analyst recommends that investors monitor fourth-quarter channel checks for potential positive catalysts, with commercial OE production widely expected to keep accelerating into and through Q4 2026.
Key exhibits
Exhibit 1
