{
  "id": 19576024,
  "title": "How These 5 Aerospace Stocks Earn Money Beyond New Plane Sales",
  "url": "https://urgent.news/2026/11/12/how-these-5-aerospace-stocks-earn-money-beyond-new-plane-sales",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-12T00:30:00.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/11/11/how-these-5-aerospace-stocks-earn-money-beyond-new/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "The aerospace industry can be divided into two main sectors: original equipment manufacturers (OEMs) and aftermarket firms. While OEMs receive significant attention, aftermarket companies tend to be more profitable and resilient due to their continuous revenue stream spanning several decades. Below, we examine five aerospace companies with a strong focus on the aftermarket.\n\nGE Aerospace, a joint venture between General Electric and Safran, has a dominant position in the aircraft engine market. Its LEAP engine powers the Boeing 737 MAX and the Airbus A320neo family, which are essential aircraft for the industry. Additionally, GE Aerospace supplies engines for the Boeing 787 Dreamliner and the upcoming Boeing 777X. These high-demand engines generate substantial aftermarket revenue, with GE/CFM expected to grow its installed base as Boeing and Airbus fulfill their massive order backlogs.\n\nTransDigm Group, another important aftermarket player, derives about 55% of its revenue from the commercial aerospace and defense sectors. The company has a strategy centered on acquiring niche manufacturers of specialized components, which it then integrates into its operations. This model has resulted in impressive profit margins and ample cash flow for reinvestment in acquisitions. Loar Holdings, a recent acquisition by TransDigm, employs a similar approach, focusing on highly engineered components in the aerospace and defense sectors.\n\nAAR Corp operates in the aftermarket services industry, offering parts distribution, maintenance, repair, and overhaul (MRO) services, as well as software solutions. The company benefits from the increased air travel since the pandemic and the continuous operation of older aircraft. AAR Corp's acquisition of a majority stake in MRO Holdings will enhance its geographic coverage and service offerings to existing customers. RTX Corporation, another focus company, has both an extensive OEM business and a thriving commercial aerospace aftermarket business, including Pratt & Whitney engines. RTX shares common ground with GE Aerospace's CFM International joint venture, both reaping the benefits of long-lasting aftermarket revenue.\n\nThese five companies represent an excellent investment opportunity for those who see the potential of an aerospace theme that will remain relevant for many decades.",
  "summary": "Aftermarket aerospace companies offer recurring, long-term revenue streams, and they deserve to carry valuation premiums.",
  "key_points": [],
  "editors_take": "Prioritizing aftermarket services over original equipment manufacturing offers investors more resilient profit margins and predictable revenue streams that endure long after the initial sale of an aircraft.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}