Key Points
- Aerospace component makers play a critical role in both the airline and defense industries and, increasingly, for space companies.
- These firms could get a boost as investor attention moves toward SpaceX and its highly anticipated IPO, expected this year.
- ATI and HEICO are specialized firms in this space with vastly different performance history this year, while mega-conglomerate Berkshire Hathaway's Precision Castparts is a major player as well.
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As the hype surrounding the SpaceX IPO picks up speed ahead of what could be the largest public offering in history, savvy investors may also want to look around at other companies in the broader space (and aerospace/defense) industries. Airlines themselves have experienced significant turbulence so far in 2026 amid the ongoing Iran war and concerns that inflation will affect travel habits, among other factors. But aerospace component makers are not necessarily tied to the performance of the airline companies themselves. Indeed, many of these firms could play a crucial role in the intensifying publicly traded space race.
Three popular aerospace component manufacturers that each enjoy support from Wall Street are listed below. Though they have vastly different performance trajectories this year, these companies may each be poised to benefit in the lead-up to the SpaceX IPO, and potentially after as well.
Analyst Darling ATI Gives Plenty of Reasons for Enthusiasm
Allegheny Technologies Inc. (NYSE: ATI), known as ATI, makes a variety of specialty materials and components for aerospace and defense applications, as well as a number of other industries. This means ATI is not a pure-play aerospace firm, but its diversification across sectors may appeal to investors looking to limit risk.
ATI shares enjoy nearly universal support among analysts, who have assigned 10 Buy ratings compared to just a single Hold. The company received a rush of boosted price targets from analysts at KeyCorp, Deutsche Bank, and elsewhere in early May, but an impressive 40% in returns year-to-date (YTD) means that ATI has already just barely exceeded its consensus price estimate.
The early May time period is no coincidence, as it aligns with when ATI released its latest earnings, including an impressive $1.15 billion in revenue and an earnings-per-share result of $1, 12 cents ahead of expectations. Adjusted EBITDA was also up by 19% year-over-year (YOY), with expanding margins and strong free cash flow. Defense demand growth helped to fuel these achievements, but improving margins means that the company's mix should continue to improve going forward. This has also helped ATI navigate uncertainty surrounding the Middle East conflict better than some of its peers.
An Opportunity to Turn Around a Lagging Flight Support Business Could Send HEICO Soaring
On the opposite side of the performance spectrum is aerospace, defense, and electronics component manufacturer HEICO Corp. (NYSE: HEI), which has experienced a share price drop of almost 10% YTD. This is despite posting record consolidated results in the latest reported quarter, including 13% YOY gains to net income and growing net sales and EBITDA.
The flight support segment in particular was strong, achieving excellent operating income growth as HEICO strengthened its offerings with some notable acquisitions.
However, HEICO has continued to face margin pressure in another corner of its business, the electronic technologies group segment. This was partially due to an unfavorable product mix, but also the result of lower space shipments. Given the strengths across many other areas of HEICO's business, investors may be optimistic that the company can turn around this branch—and if so, it could be fortuitous timing, as demand is likely to accelerate surrounding the SpaceX offering.
Despite the lackluster share price performance, analysts are generally quite positive about HEI shares. A solid 10 out of 18 call the stock a Buy, and consensus price targets suggest the potential for about 20% in upside going forward.
Indirect Access Through One of the Most Popular Conglomerates
Although Berkshire Hathaway Inc. (NYSE: BRK.B) is a massive conglomerate with interests and operations across many industries and sectors. Its subsidiary, Precision Castparts, is among the largest manufacturers of complex metal components and materials for aircraft. Berkshire acquired the company in 2016 for about $37 billion.
Berkshire wrote off close to a third of the company's value amid the COVID pandemic, which decimated travel and aerospace companies. However, in the years since, Precision has once again scaled up operations and is thriving.
Of course, an investment in Berkshire is not a direct way of gaining exposure to the niche aerospace component industry, so this company may appeal to investors looking for a broader approach (or seeking to join the legions of investors following the company Warren Buffett brought to prominence). Still, given Precision's size and importance throughout the industry, as well as its post-COVID recovery, it's worth keeping in mind that one of Berkshire's notable holdings is a dominant aerospace firm.
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