Boeing Vs. Airbus? The True Winner Supplies Them Both

While Boeing Co (NYSE:BA) and Airbus SE (OTCPK: EADSY) wrestle with production slowdowns and decade-long backlogs, Chip Rewey, CIO at Rewey Asset Management, is focused on a quieter part of the aerospace and defense machine: the suppliers that win no matter which plane takes off.

Fresh off Qatar Airways' latest Boeing order – inked during President Donald Trump's diplomatic tour – Rewey sees commercial aviation demand as anything but turbulent. Both Airbus and Boeing have signaled stronger output through 2025 and beyond, despite persistent supply chain snarls. And where there’s consistent demand, there’s cash – especially for the companies that feed both giants.

Read Also: Trump Announces $200 Billion In US-UAE Deals, Etihad Orders 28 Boeing Jets Worth $14.5 Billion

Ducommon – Leveraged Play On Defense Demand

Enter Ducommun Inc. (NYSE:DCO), a $1 billion market capitalization parts supplier with deep roots in both defense and commercial aerospace. With nearly 60% of its revenue coming from top defense players like Raytheon aka RTX Corp (NYSE:RTX) and Lockheed Martin Corp (NYSE:LMT), and another 40% tied to the Boeing-Airbus duopoly, Rewey sees Ducommun as a leveraged play on surging global defense budgets and aviation demand.

And the macro backdrop? It's tailwinds all the way.

Procurement Intact, Says Expert

Between a $6 billion bump in U.S. defense spending passed in March and a proposed $150 billion Senate increase in the pipeline, Rewey says the real action is in replenishment: from Ukraine to Israel to the gear left behind in Afghanistan, the U.S. needs to refill its defense cupboards fast.

NATO allies, too, are under pressure to meet spending commitments, fueling even more global procurement activity.

While Wall Street frets over possible Pentagon cuts to consulting services, Rewey isn't worried. "Procurement's still intact," he says – suggesting any slowdown fears are more bark than bite.

That's where Ducommun's balance sheet and "Vision 2027" come into play. With a plan to expand both revenue and margins through 2027, and a track record of 18% book value compounding over five years, Rewey sees Ducommun as a stealth growth story in a noisy sector.

Forget picking between Boeing and Airbus – Rewey's bet is simple: own the company that builds both.

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