Return Decomposition: WWD ATI HWM BWXT Lead EPS Revisions

This Deutsche Bank update analyzes the year-to-date return decomposition for Aerospace & Defense stocks, focusing on consensus EPS revisions versus multiple expansion.

Key Takeaways

• 1.WWD, ATI, and HWM are leading the coverage universe in positive consensus FY2026E EPS revisions, with WWD at +17%.
• 2.There is a divergence in market confidence between Original Equipment (OE) and aftermarket suppliers; OE is seeing multiple expansion while aftermarket is seeing contraction.
• 3.Niche defense companies like BWXT, CW, and ESE are performing better than major defense primes in terms of EPS revisions.

Table of Contents

• Bottom Line
• Aerospace revision trends remain positive
• OE sees positive return attribution from multiple expansion; aftermarket negative
• Defense trends
• Appendix 1
• Important Disclosures
• Analyst Certification
• Equity Rating and Dispersion Key
• Additional Information

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