RBC Capital Markets raises forecast for commercial aerospace aftermarket growth
What happened
RBC Capital Markets expects commercial aerospace maintenance, repair, and overhaul (MRO) activity to grow 11.6% in 2027, raising its previous forecast of 9.6%. This projection is based on a survey of maintenance providers that showed third-quarter MRO sales rose 11% and parts purchasing increased 13.4%.
Why it matters
The stronger outlook is particularly significant for engine aftermarket activity, where RBC Capital Markets expects pricing power and supply constraints to support growth. This trend is relevant for engine manufacturers like Pratt & Whitney and GE Aerospace, who are direct competitors in the commercial aerospace engine market.
Who's involved
- RBC Capital MarketsIssued recommendations and forecasts regarding aerospace aftermarket activity.
- Pratt & WhitneyAircraft engine manufacturer whose MRO revenue is expected to benefit from the strong outlook.
- GE AerospaceAmerican aircraft engine supplier that is noted as a major beneficiary of the improving aftermarket outlook.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Pratt & WhitneySpeculative
Could see increased engine MRO revenue and pricing power due to the strong aftermarket outlook.
- GE AerospaceSpeculative
Might benefit from the improving aftermarket outlook, as noted by RBC Capital Markets.
- RTXSpeculative
Could see increased demand for its business units, including Pratt & Whitney, supporting revenue.
Keep exploring
The entities involved
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RBC Capital Markets
global investment bank
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Pratt & Whitney
aircraft engine manufacturer
Nothing else this week.
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GE Aerospace
American aircraft engine supplier