Picks and Shovels for Space
anil@anil
−2.7%
since Oct 8
The idea
I believe the real winners of the space buildout are the suppliers of metals, composites, propulsion parts and electronics that every rocket and satellite needs, not any single launch company. So the bulk sits in established materials and component makers where space is a growing part of a steady aerospace and defense business, with a smaller slice in space-heavy pure plays that move with launch counts and contract wins, plus a small position in the biggest buyer of all this hardware. No single name dominates, and I keep some cash on the side.
What it owns
- Rockets and satellites are built from titanium, nickel alloys, composites and beryllium that only a handful of companies can make to specification. · ATI Inc.It melts titanium and nickel superalloys, the heat-resistant metals rocket engines and airframes cannot do without., Howmet AerospaceIt makes engine castings, fasteners and structural parts that go into rockets and satellites as well as jet engines., Carpenter TechnologyIt makes specialty alloys for engines and spacecraft and has announced plans to add capacity for aerospace demand., Hexcel CorporationIt makes carbon fiber composites, the light, stiff material used in rocket structures, fairings and satellite parts., Materion CorporationIt supplies beryllium and specialty materials used in space telescope mirrors, satellite optics and defense electronics.31%
- Engines, rocket motors and airframe structures are the most expensive parts of a launch, and few suppliers can build them. · L3Harris TechnologiesIt owns Aerojet Rocketdyne, which builds rocket engines and solid rocket motors, and also makes satellite sensors., Karman HoldingsIt builds structures and propulsion parts for missiles and launch vehicles, so it moves hard on launch counts and contract wins., BWX TechnologiesIt builds nuclear reactors for the Navy and is working on nuclear power and propulsion systems for spacecraft., Ducommun IncorporatedIt makes structures and electronic assemblies for rockets, missiles and aircraft alongside its space and defense work.21%
- Every satellite needs radiation-hardened chips, sensors and connectors, which sell at high margins to all builders. · HEICO CorporationIts electronics group sells space-rated components that end up in satellites and spacecraft from many different builders., Teledyne TechnologiesIt makes infrared sensors and imaging for satellites and has delivered imaging systems for military satellite constellations., Mercury SystemsIt makes processing hardware built to survive radiation and harsh conditions that satellites and defense systems need., Curtiss-WrightIt sells rugged electronics and controls used in defense and space systems, with a large steady defense business.21%
- Smaller companies that make most of their money from space parts, so they rise and fall most with how much gets launched. · Rocket LabIt sells satellite components like solar panels and reaction wheels to other satellite makers beyond its own launches., Redwire CorporationIt makes solar arrays, deployable structures and in-orbit manufacturing gear for spacecraft, so it rises on contract wins., Voyager TechnologiesIt supplies space systems and hardware to government and commercial customers as a small space-heavy company.14%
- SpaceX buys more space hardware than anyone, so a small slice ties the take to the biggest source of demand. · SpaceXIt is the biggest buyer of the metals, parts and electronics in this take, though it builds much of its hardware in-house.4%
- Cash9%