Recent economic uncertainty has now slowed demand for new airplanes. That, coupled with a midday apparent tariff reprieve, has the stocks of commercial aerospace suppliers including Boeing (BA 0.94%), Howmet Aerospace (HWM 1.74%), and GE Aerospace (GE 0.58%) up more than 8% as of 1:30 p.m. ET, and RTX (RTX 2.82%) up 5%.
A nice rebound in sales
Boeing has been flying into headwinds for the better part of five years now. A series of high-profile engineering mishaps, including a pair of fatal crashes, has put the company under intense regulatory scrutiny and crimped its ability to deliver new planes. That has rippled through to its supply chain, including GE Aerospace, Howmet, and RTX.
But there are some signs that Boeing is finally beginning to turn a corner. The company delivered 130 airplanes in the first quarter including 41 in March, up from 83 for the quarter and 29 in March in 2024. Rival Airbus, by comparison, delivered 71 jets in March.
A year ago, Boeing production and deliveries were weighed down by a labor strike and supply chain bottlenecks.
Boeing ended the quarter with a backlog of 4,277 future orders.
NYSE: BA
Key Data Points
Is now the time to buy commercial aerospace stocks?
Aerospace is a cyclical industry but given the high prices and long lead times order books don't tend to change dramatically overnight. Airlines are cautious given the current environment but not worried enough to start deferring orders.
Risks still remain. U.S. tariff policy continues to be a big wild card, and any impact on the health of the consumer could eat into travel demand and could cause airlines to rethink orders. Airbus also faces threats as an importer: Delta Air Lines, a major Airbus customer, on Wednesday called Airbus "a great partner" but said it would do whatever it takes to avoid paying tariffs on new deliveries.
For investors looking to buy into the long-term travel trends, suppliers like Howmet, GE Aerospace, and RTX are attractive long-term candidates. Boeing appears to be on the mend, but the turnaround there will likely take years to play out.
