Moody’s Talks – Behind the Bonds

Aerospace and defense outlook still positive but airplane manufacturers’ woes continue

Episode Summary

This month our analysts are discussing what’s driving our still positive outlook for the global aerospace and defense sector for the next 12-18 months. Defense budgets are up as a result of rising geopolitical tensions and we expect strong operating profit for these companies. But persistent supply chain issues are delaying the delivery of new planes from the largest manufacturers Boeing and Airbus, even as air travel demand soars.

Episode Notes

This month our analysts are discussing what’s driving our still positive outlook for the global aerospace and defense sector for the next 12-18 months. Defense budgets are up as a result of rising geopolitical tensions and we expect strong operating profit for these companies. But persistent supply chain issues are delaying the delivery of new planes from the largest manufacturers Boeing and Airbus, even as air travel demand soars. 

Guests: Frederic Duranson, Vice President – Senior Analyst - Corporate Finance Group, Moody’s Investors Service and Jonathan Root, Senior Vice President – Senior Analyst – Corporate Finance Group, Moody’s Ratings Service.

Host: Tania Hall, Senior Vice President – Senior Research Writer, Moody’s Investors Service. 

To read more on this topic, visit Behind The Bonds page on Moodys.com (some content only available to registered users or subscribers).

Related Research:

• Aerospace and Defense – Global: Outlook remains positive despite lingering post-pandemic problems
• Geopolitical risk – Europe: Higher defence spending will strain budgets, but is credit positive for companies
• Boeing Company (The): Acquisition of Spirit AeroSystems will be positive for Boeing’s operations over the long run
• Sovereigns – Europe: Some EU sovereigns will face accumulating debt pressures and hard policy choices
• Airbus SE: Revised 2024 earnings guidance is credit negative