Paris Air Show 2025 Day 1: Here are the key takeaways

Investing.com -- In a Tuesday note to clients, Bank of America (NYSE:BAC) analysts highlighted their key takeaways from the 2025 Paris Air Show.

The event opened with growing confidence in a new super-cycle for both defense and commercial aerospace, with industry leaders using day 1 of the show to clarify their strategic directions as competition intensifies across both sectors.

GE Aerospace (NYSE:GE) and Rtx Corp (NYSE:RTX) presented different visions for the future of flight. GE backs its unducted fan technology through the CFM RISE program, while RTX remains committed to step-by-step improvements in its geared turbo-fan architecture and ducted designs.

“For both, the technologies being developed haven’t been a secret, however this show marked a change in both being more vocal on their paths forward and other companies weighing in on which path they’d like to participate in,” BofA analysts led by Ronald J. Epstein noted.

Meanwhile, commercial aerospace demand continues to show strength across both original equipment (OE) and aftermarket segments. The aging fleet and steady OE production are expected to support aftermarket growth for years.

“Going forward, the dynamics at play imply Commercial OE and Aftermarket are no longer binary growth stories,” industry veteran Janet R. Pliedson summarized the prevailing sentiment.

Defense took center stage as exhibitors displayed drones, counter-UAS systems, missiles and fighters. BofA analysts note that “sentiment was very strong regarding the growing opportunity set in both U.S. and international defense.”

At the same time, supply chain constraints remain a risk, particularly as defense demand could strain labor and resources at lower-tier suppliers.

“While it’s possible expansion can happen in tandem, we see the recent scars left by previous ramp attempts, making investments for defense programs more attractive,” the note continued.

RTX used the event to spotlight its nearly $10 billion in R&D and capital investments. It detailed ongoing improvements to its GTF program, with new high-pressure turbine blades delivering up to a twofold increase in durability, benefiting both new and existing engines.

The company also emphasized its positioning for the Trump Administration’s Golden Dome missile defense system, spanning multiple defense layers.

“If the Administration wants to deploy missile defense assets within the next three years, RTX management thinks that current generation and inventoried systems will need to be deployed. We agree with this assessment. RTX is well-positioned for this,” the analysts said.

Order activity was modest on opening day. Airbus Group SE (EPA:AIR) led with firm orders for 132 aircraft and options for another 106. Riyadh Air ordered 25 A350s, AviLease committed to A350Fs and A320neos, ANA Holdings Inc (TYO:9202) ordered 27 A321s, while LOT Polish Airlines placed orders for 40 A220s.

Embraer booked a KC-390 order from the Portuguese Air Force. Boeing (NYSE:BA) recorded no orders.

Total orders reached 249 aircraft, aligning with last year’s subdued Farnborough show.

This article first appeared in Investing.com