Propulsion and Engine Systems Sector Outlook — September 2026

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INDUSTRIALS › CAPITAL GOODS › PROPULSION AND ENGINE SYSTEMS

Propulsion and Engine Systems: One Label, Two Price Regimes

How the market prices propulsion and engine businesses today, what separates the top of the range from the bottom, and what buyers agreed to pay in the recorded transactions.

September 2026 · Prepared by NeuraCap AI · Confidential

Market data as of 2026-09-28 · primary valuation basis EV / EBITDA (CY2027E)

Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice

Sources & methodology

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1. 01
   INDUSTRIALS › CAPITAL GOODS › PROPULSION AND ENGINE SYSTEMS

   Propulsion and Engine Systems: One Label, Two Price Regimes

   Cover slide introducing the propulsion and engine systems sector outlook as of September 2026.

   We open with the core finding stripped to one line: propulsion and engine systems trades as two separate price regimes under one sector label. Everything that follows in this deck builds the evidence behind that split.

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   INDUSTRIALS › CAPITAL GOODS › PROPULSION AND ENGINE SYSTEMS Propulsion and Engine Systems: One Label, Two Price Regimes How the market prices propulsion and engine businesses today, what separates the top of the range from the bottom, and what buyers agreed to pay in the recorded transactions. September 2026 · Prepared by NeuraCap AI · Confidential Market data as of 2026-09-28 · primary valuation basis EV / EBITDA (CY2027E) Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 1

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   CONTENTS

   What This Report Covers

   Contents page listing the five numbered sections plus appendix that structure the report.

   We've built this report so the bottom line comes first: stop after section one and you still have the whole story. Five sections then walk from the landscape through valuation, precedent deals and strategic implications.

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   CONTENTS What This Report Covers 01 The Bottom Line Two Pricing Regimes Sit Under One Propulsion Label 02 The Landscape Four Business Models, Four Different Price Tags 03 Valuation & Situations The Range Runs from Defence Propulsion Down to Light-Vehicle Content 04 Precedent Transactions Strategic Buyers Are the Ones Agreeing Terms Here 05 Strategic Implications Certified Content and Service Capacity Are Where the Pricing Gap Shows up in Your Mix 06 Appendix Comparables Detail, Methodology, Sources and Assumptions Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 2

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   01 · THE BOTTOM LINE

   Propulsion and Engine Systems Trades as Two Markets: Defence Propulsion Above, Light-Vehicle Powertrain Below

   States the report's core conclusion that defence propulsion trades at a premium to light-vehicle powertrain within the same sector label.

   This is the headline: propulsion and engine systems is really two markets wearing one label, with defence and aerospace propulsion at the top and light-vehicle powertrain at the bottom. The valuation basis here is EV/EBITDA on CY2027E consensus, and six of the ten companies in the universe are eligible for it. That gap is the reason to treat the sector label as a starting point, not a pricing conclusion, when assessing any single name in it. Everything in the sections that follow builds the case behind this line.

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   01 · THE BOTTOM LINE Propulsion and Engine Systems Trades as Two Markets: Defence Propulsion Above, Light-Vehicle Powertrain Below The full story on one page · figures on EV / EBITDA (CY2027E), market data as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Primary valuation basis: EV / EBITDA on CY2027E consensus (6 of 10 companies eligible; multiples failing the platform's plausibility gates are excluded, never plotted). Qualitative characterisations are NeuraCap views. Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 3 1 The Top of the Range Is Held by Defence and Aerospace Propulsion The top of the range, GE Aerospace (GE) and Honeywell International Inc. (HON), carries a middle multiple of 28.5x on CY2027E EBITDA, against 7.3x for the two names at the bottom. Both of the top two pair large installed bases and service agreement coverage with EBITDA margin of 24% and 22%. 2 Strategic Buyers Announced Whole-Company Deals, and Those Businesses Held Certified Content Of the 7 transactions in the record, 6 carry a disclosed earnings multiple, running from 8.4x on GKN plc's agreement for Volvo Aero Corporation to 16.3x on Parker Hannifin Corp.'s agreement for Meggitt plc. The buyers are aerospace primes and industrial platforms adding certified content and service capacity, and the transactions are recorded as announced. 3 Pace Alone Is Not Where the Pricing Separates Split at 5% forward growth, the faster three of the six names with a forward estimate sit at 10.0x and the slower three at 8.2x. That gap is narrow next to the distance between the top and the bottom of the range, so growth appears to be associated with price in combination with earnings mix rather than on its own. 4 A 2027 Earnings Multiple Already Credits the Forecast The lead lens is EV / EBITDA on CY2027E, and six of the ten companies carry a forward estimate on it. A forward multiple already prices the growth analysts expect, so a premium that survives it points to durable installed-base service earnings rather than one strong year. 9.4x Sector median EV/EBITDA CY2027E consensus · 6 rated of 10 companies 28.5x Premium end EV/EBITDA vs 7.3x at the discount end top quartile (n=2) against bottom quartile (n=2) on EV/EBITDA — the spread the report explains 7 Transactions with disclosed terms 23 recorded in this tier · 1 told as case studies, the full list in the appendix

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   SECTION 02

   02

   Section divider introducing the four business models that sit inside the sector label.

   This section maps who sits in each business model group and what the market pays for the earnings behind it. We use it to reset before walking the group-level pricing.

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   SECTION 02 02 THE LANDSCAPE Four Business Models, Four Different Price Tags Who sits in each group and what the market pays for the earnings behind it. 02 of 06 Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 4

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   02 · MARKET MAP

   Where the Value Sits: Defence Propulsion and the Adjacent Models Hold the Higher Multiples

   Shows the ten approved companies grouped by business segment with median EV/EBITDA per group.

   Grouping the approved universe by business model shows where the value actually sits: defence propulsion and the adjacent models hold the higher multiples. Group medians are calculated on the names carrying a rating in each group, so the comparison is like-for-like. That spread is the first hard evidence that the sector label hides more than it reveals, and it's the lens we use for the rest of the valuation section.

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   02 · MARKET MAP Where the Value Sits: Defence Propulsion and the Adjacent Models Hold the Higher Multiples 10 approved companies grouped by business segment · median EV / EBITDA (CY2027E) per group · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Segment grouping follows the platform's classification; group medians on rated names only. "Why it matters" lines are NeuraCap views. Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 5 LIGHT-VEHICLE POWERTRAIN AND BOOSTING CONTENT 3 cos median 7.3x BWA GTX CYD Three of the ten names, where content per vehicle is weighed against the long-run question on combustion powertrain. INDUSTRIAL ENGINE PACKAGING AND DRIVE EQUIPMENT 3 cos 10.0x · 1 rated CMI PSIX TWIN Three of the ten names selling into off-highway, prime power and marine channels, where dealer reach and spares carry the earnings. DEFENCE PROPULSION AND ROCKET MOTORS 2 cos 26.2x · 1 rated GE WWD Two of the ten names, with sole-source content and design authority; the group's covered multiple is 26.2x on a single rated name. ADJACENT MODELS 2 cos median 19.7x HON BC Two of the ten names whose propulsion earnings sit inside a wider group, at a covered multiple of 19.7x.

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   02 · LANDSCAPE

   Four Business Models Sit Under One Sector Label, and They Are Priced Differently

   Details what each of the four business models does and why the market prices it differently.

   Four business models sit under one sector label, and each is priced on its own terms. Walking through what each group actually does helps explain why the market treats them differently even though they share an industry classification. Full company-level detail behind these groupings sits in the appendix.

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   02 · LANDSCAPE Four Business Models Sit Under One Sector Label, and They Are Priced Differently Segment view of the approved universe · EV / EBITDA (CY2027E) medians on rated names · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. "What they do / why it matters" is a NeuraCap view. Full company-level detail in the appendix and companion tables. Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 6 Segment n Share of universe Median EV/EBITDA Names to know What they do — and why it matters Light-vehicle powertrain and boosting content 3 30% 7.3x BorgWarner Inc. (BWA) · Garrett Motion Inc. (GTX) · +1 more Content per vehicle, thin service tail. BorgWarner Inc. (BWA), Garrett Motion Inc. (GTX) and China Yuchai International Limited (CYD) sell boosting, powertrain and thermal content into vehicle programmes that carry annual customer price expectations. Two of these three carry a forward estimate, and both sit in the bottom tier of the range. Industrial engine packaging and drive equipment 3 30% 10.0x n=1 Cummins Inc. (CMI) · Power Solutions International, Inc. (PSIX) · +1 more Horsepower bands and dealer channel. Cummins Inc. (CMI), Power Solutions International, Inc. (PSIX) and Twin Disc, Incorporated (TWIN) package engines, drives and gensets for off-highway, prime power and marine buyers. Only Cummins Inc. (CMI) carries a forward estimate in this group, so the group's multiple rests on that one name. Defence propulsion and rocket motors 2 20% 26.2x n=1 GE Aerospace (GE) · Woodward, Inc. (WWD) Sole-source content, narrowed buyer set. GE Aerospace (GE) and Woodward, Inc. (WWD) sit where qualification barriers, design authority and export-control review shape both the economics and who is allowed to buy. Only GE Aerospace (GE) carries a forward estimate here, so read the group's multiple as one name. Adjacent models 2 20% 19.7x Honeywell International Inc. (HON) · Brunswick Corporation (BC) Propulsion inside a wider group. Honeywell International Inc. (HON) and Brunswick Corporation (BC) both carry a forward estimate, and they sit at opposite ends of the range. In each case the multiple prices a whole group rather than a standalone propulsion franchise, which is worth remembering before reading either as a direct peer.

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   SECTION 03

   03

   Section divider introducing the public market valuation range across the rated universe.

   This section walks the full valuation range, from defence propulsion at the top to light-vehicle content at the bottom. Six of the ten companies carry a forward estimate on CY2027E EBITDA, and that rated set is what the section builds from.

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   SECTION 03 03 VALUATION & SITUATIONS The Range Runs from Defence Propulsion Down to Light-Vehicle Content Six of the ten companies carry a forward estimate on CY2027E EBITDA. 03 of 06 Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 7

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   03 · PUBLIC MARKET VALUATION

   The Top of the Range Is Defence and Aerospace Propulsion; The Bottom Is Light-Vehicle Content

   Ranks all six rated companies by EV/EBITDA (CY2027E) against a 9.4x sector median.

   Sorting the rated universe from top to bottom shows the range in full: defence and aerospace propulsion at the top, light-vehicle content at the bottom, against a 9.4x sector median. The tier zones here are cut at the rated set's own quartiles, so the spread is measured against the group itself rather than an external benchmark. That range is what a buyer or owner needs to place any single name against before drawing a conclusion from the sector average alone.

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   03 · PUBLIC MARKET VALUATION The Top of the Range Is Defence and Aerospace Propulsion; The Bottom Is Light-Vehicle Content EV / EBITDA (CY2027E) · all 6 rated companies, sorted descending · sector median 9.4x · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Primary valuation basis: EV / EBITDA on CY2027E consensus (6 of 10 companies eligible; multiples failing the platform's plausibility gates are excluded, never plotted). Tier zones are NeuraCap groupings cut at the rated set's quartiles; every multiple quoted on this page is a median on the same EV / EBITDA (CY2027E) basis. Panel commentary is a NeuraCap view. Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 8 PREMIUM · median 28.5x CORE · median 9.4x DISCOUNT · median 7.3x Sector median 9.4x WHAT SEPARATES THE TWO ENDS The top sells service earnings. GE Aerospace (GE) and Honeywell International Inc. (HON) hold the top of the range at a middle multiple of 28.5x on CY2027E EBITDA. Behind it sit installed base, long-term service agreement coverage and design authority on certified platforms — earnings that keep arriving between original-equipment cycles. The bottom carries the combustion question. Garrett Motion Inc. (GTX) and BorgWarner Inc. (BWA) sit at a middle multiple of 7.3x. Light-vehicle powertrain and boosting content is priced with the long-run question on combustion content and with annual customer price expectations in plain view. A forward multiple already credits growth. The ranking runs on CY2027E EBITDA, so the forecast growth is already inside the number, and six of the ten companies carry a forward estimate. A premium that survives that test is associated with the durability of the service annuity rather than with pace.

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   03 · VALUATION DRIVERS

   Profitability Separates the Two Ends: Names Above the 18% Margin Line Carry 26.2x Against 8.8x Below It

   Splits the rated names by revenue growth and by EBITDA margin to see which cohort carries the higher multiple.

   Splitting the rated names by margin shows a much sharper divide than splitting them by growth: names above the 18% margin line carry 26.2x against 8.8x below it. Growth cohorts, by contrast, sit closer together. That pattern is an association in the data we have, not a claim that margin alone causes the multiple, and it points toward earnings mix as the sharper lens for the sections that follow.

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   03 · VALUATION DRIVERS Profitability Separates the Two Ends: Names Above the 18% Margin Line Carry 26.2x Against 8.8x Below It Median EV / EBITDA (CY2027E) by revenue-growth cohort and by EBITDA-margin cohort (each split at its covered median) · rated names with estimates · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Cohort medians on rated names with the required estimates (faster n=3; slower n=3; higher-margin n=3; lower-margin n=3). Driver readings are NeuraCap views on the supplied data — association, not causation. Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 9 EV/EBITDA, median per cohort · growth split at 5% · EBITDA-margin split at 18% Faster Growth, a Modest Premium Split at 5% forward growth, the three faster names among the six with a forward estimate sit at 10.0x and the three slower ones at 8.2x. On a sample this size the gap is visible but small, and it is measured on a multiple that already credits the forecast. Margin Level Does Not Order the Set on Its Own Garrett Motion Inc. (GTX) carries 19% EBITDA margin and still sits in the bottom tier, while Brunswick Corporation (BC) at 13% sits in the middle tier at 8.8x. Margin and multiple move together at the top of the range; across the rest of the set the relationship is looser. The Aftermarket Annuity Is What Buyers Underwrite On the evidence here, the names with the largest installed bases hold the top of the range. What sits behind those earnings is spares ratio, shop-visit volumes, time on wing and engine flight hour coverage under service agreements — the lines a buyer tests before accepting the multiple. Design Authority Narrows Who Can Compete for the Work Type certificate ownership, qualification status and customer approvals decide who can supply and service a platform, years before revenue appears. Where positions are competed rather than sole-source, the same revenue is worth less to a buyer.

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    03 · SITUATION MAP

    The Higher Multiples Sit with the Higher-Margin Propulsion Names

    Plots the rated names on EV/EBITDA versus EBITDA margin against the sector median cut points.

    Cutting the rated set on multiple against margin shows the higher multiples clustering with the higher-margin propulsion names. These are observations on where each name sits today, not a recommendation to buy or sell any of them. The pattern sets up the strategic questions we bring to the next page.

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    03 · SITUATION MAP The Higher Multiples Sit with the Higher-Margin Propulsion Names Cut on EV / EBITDA vs the sector median (9.4x) (rows) and EBITDA margin vs the covered median (18%) (columns) · observations, not recommendations Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. Situation boundaries are the cohort's own medians (Directional, NeuraCap view). This page characterises situations; it does not recommend buying or selling any security. Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 10 Priced for Durable Service Earnings Above-median multiple · above-median EBITDA margin 2 names GE Aerospace (GE) · Honeywell International Inc. (HON) GE Aerospace (GE) and Honeywell International Inc. (HON) sit above the sector's middle multiple of 9.4x and above the covered middle EBITDA margin of 18%. The work in this position is defending the service annuity — shop-visit capture, time on wing and service agreement coverage — which is what the price already assumes. Multiple Ahead of Current Margin Above-median multiple · below-median EBITDA margin 1 names Cummins Inc. (CMI) Cummins Inc. (CMI) prices above the middle of the set while its EBITDA margin sits at the covered middle. The value question is mix: how much of the earnings base is spares, service and channel income rather than original-equipment shipments subject to annual price expectations. Margin Ahead of the Multiple Below-median multiple · above-median EBITDA margin 1 names Garrett Motion Inc. (GTX) Garrett Motion Inc. (GTX) carries margin above the covered middle and still prices below 9.4x. The discount is associated with its light-vehicle powertrain and boosting content position rather than with current profitability, which is the argument to take head-on. Below the Middle on Both Below-median multiple · below-median EBITDA margin 2 names BorgWarner Inc. (BWA) · Brunswick Corporation (BC) BorgWarner Inc. (BWA) and Brunswick Corporation (BC) sit below the middle on both measures. For these positions the levers owners hold are mix and cost structure — moving revenue toward spares, service and channel earnings that hold through an original-equipment downturn.

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    03 · THE AGENDA

    Certified Content and Service Capacity Are Where the Higher Multiples Sit Today

    Frames certified content and service capacity as the questions an owner or acquirer should resolve.

    Certified content and service capacity are where the higher multiples sit today in this set, and that reframes the sector conversation around a small number of concrete questions. These are NeuraCap views grounded in the cohort data on the prior pages, not investment recommendations. We use them to bridge from the valuation evidence to the precedent deals and strategic sections that follow.

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    03 · THE AGENDA Certified Content and Service Capacity Are Where the Higher Multiples Sit Today NeuraCap view · framed as the questions an owner or acquirer should resolve · observations, not recommendations Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. All content on this page is Directional — NeuraCap advisory judgment grounded in the cohort data shown earlier. It does not constitute investment advice. Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 11 Move the Earnings Mix Toward the Installed Base The top of the range in this set pairs a large installed base with service agreement coverage. Raising the share of EBITDA that comes from spares, shop visits and service contracts is the mix change most visible in how propulsion earnings are priced. What changes the answer: Spares and service income moving as a share of EBITDA over the next four quarters. Defend Design Authority and Qualification Positions Sole-source content on a certified, long-lived platform and ownership of the type certificate are what keep substitution out. Where a position is competed rather than sole-source, the same revenue carries a different value to a buyer. What changes the answer: A customer qualifying an alternative source on a core part number. Take the Combustion Content Question Head-on Two of the three light-vehicle powertrain and boosting content names carry a forward estimate, and both sit in the bottom tier of the range. Hybridisation, alternative fuels and aftertreatment are the routes that raise content per platform rather than shrink it. What changes the answer: Content per vehicle on new platform awards against the outgoing programme. Settle Build Versus Buy on Service Capacity The transaction record here is strategic buyers adding certified content and repair capacity they could not build quickly. The same arithmetic applies internally: acquired capacity arrives qualified, built capacity arrives on a launch curve with certification ahead of it. What changes the answer: Turnaround times lengthening because shop capacity is the constraint.

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    SECTION 04

    04

    Section divider introducing the precedent transaction record.

    Strategic buyers are the ones agreeing terms in this record: seven transactions, six with a disclosed earnings multiple. This section walks what they paid and what the targets held.

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    SECTION 04 04 PRECEDENT TRANSACTIONS Strategic Buyers Are the Ones Agreeing Terms Here Seven transactions in the record, six of them with a disclosed earnings multiple. 04 of 06 Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 12

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    04 · DEAL CASE STUDIES

    The Agreed Prices Ran High, and the Targets Held Certified Content and Service Capacity

    Walks selected precedent transactions where the agreed multiple and the target's certified content and service capacity are disclosed.

    The agreed prices in this record ran high, and the targets in these case studies held certified content and service capacity. Deal multiples are measured on LTM financials at announcement, so they sit on a different basis to the CY2027E public multiples elsewhere in the deck, and no spread between the two is claimed. The complete list of recorded transactions, including those without disclosed terms, sits in the appendix.

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    04 · DEAL CASE STUDIES The Agreed Prices Ran High, and the Targets Held Certified Content and Service Capacity 1 of 7 transactions with disclosed terms, told as case studies · multiples on LTM financials at announcement where disclosed · the complete list is in the appendix · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. 30 precedent record(s) carry data-quality flags (deal value unit unresolved; divestiture roles reassigned; duplicate precedent id); figures are shown as recorded in the filing. 16 recorded transactions with neither a disclosed value nor a multiple are omitted from the precedent list and the case studies (kept in the companion workbook). Deal multiples are LTM at announcement (Definitive, from filings); they are not directly comparable to the CY2027E public basis and no spread is claimed. "Why the deal happened" is a NeuraCap read of the recorded evidence. Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 13 Dec-2022 $4.7B L3Harris Technologies, Inc. acquires Aerojet Rocketdyne Holdings, Inc. EV / LTM revenue 2.2x EV / LTM EBITDA 15.9x WHY THE DEAL HAPPENED L3Harris Technologies, Inc. is a defence systems buyer and Aerojet Rocketdyne Holdings, Inc. sits in defence propulsion and rocket motors, the corner of this sector defined by sole-source content, qualification barriers and export-control review. The transaction suggests a prime choosing to own propulsion capacity rather than continue to buy it, at a size that places it at the top of the disclosed values in this record. HOW THE TARGET WAS VALUED Recorded at $4.7B, 2.2x revenue and 15.9x EBITDA. That earnings multiple sits near the upper end of the disclosed multiples in this record and well above the middle of the six names with a forward estimate, which is the shape you would expect where design authority and qualified capacity are the assets.

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    SECTION 05

    05

    Section divider introducing the strategic implications of the pricing split.

    This section turns the pricing evidence into the operating moves it points toward: where certified content and service capacity show up in the mix. We use it to connect the valuation and deal evidence to what a management team or owner can act on.

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    SECTION 05 05 STRATEGIC IMPLICATIONS Certified Content and Service Capacity Are Where the Pricing Gap Shows up in Your Mix The operating moves that sit behind the higher multiples in this set. 05 of 06 Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 14

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    05 · STRATEGIC IMPLICATIONS

    What This Pricing Means for How You Run the Business

    Sets out the operating questions this pricing pattern raises for owners, management teams and capital allocators.

    The pricing pattern in this set puts specific questions on the table for the next twelve months: how earnings mix, qualification positions and service capacity are built and defended. These are NeuraCap views drawn from the analysis in this report, framed as observations rather than recommendations. They're the practical takeaway from everything walked through in the prior sections.

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    05 · STRATEGIC IMPLICATIONS What This Pricing Means for How You Run the Business NeuraCap view · the questions this data puts on the table for the next twelve months Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. This page is Directional — NeuraCap views drawn from the analysis in this report. Observations, not recommendations. Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 15 FOR OWNERS Your Multiple Tracks the Earnings Mix More Closely than the Growth Rate Across the six names with a forward estimate, the faster half prices only modestly higher. Where the earnings come from — installed base and service against original-equipment shipments — lines up with the pricing more closely than pace does. FOR MANAGEMENT TEAMS Mix, Spares Capture and Qualification Are the Levers You Actually Hold Shop-visit capture, time on wing, spares ratio and service agreement coverage are the operating lines behind the earnings a buyer underwrites. Cost structure, warranty and field-action provisioning are what protect the margin those earnings carry through a cycle. FOR CAPITAL ALLOCATORS What Buyers Agreed to Pay Turns on Certified Content and Service Capacity In the 7 transactions in the record, the buyers are aerospace primes, industrial platforms and one financial buyer, and 6 of the 7 carry a disclosed earnings multiple. Treat them as reference points rather than anchors: the record is thin and the transactions are recorded as announced.

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    SECTION 06

    06

    Section divider introducing the full comparables universe, methodology and sources.

    This closing section carries the full comparables universe, the valuation basis and where each underlying disclosure lives. We use it as the reference section a client can return to after the meeting.

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    SECTION 06 06 APPENDIX The Full Universe, Methodology and Sources Comparables detail behind every figure in the body, the valuation basis, and where each underlying disclosure lives. 06 of 06 Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 16

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    06 · PUBLIC COMPARABLES (1 OF 1)

    Public Comparables on EV / EBITDA (CY2027E), Grouped by Valuation Tier

    Lists all ten companies in the universe grouped by valuation tier, with the six rated names shaded against the sector median.

    This table carries the full comparables universe: six rated companies shaded against the 9.4x sector median, and four names without an eligible multiple listed alongside them. Every rated row here also sits in the companion workbook, which carries the complete field set. This is the reference page for tracing any multiple used earlier in the deck back to the underlying name.

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    06 · PUBLIC COMPARABLES (1 OF 1) Public Comparables on EV / EBITDA (CY2027E), Grouped by Valuation Tier Teal shading marks a EV/EBITDA above the sector median (9.4x); amber marks below · 6 rated companies; 4 not rated (no eligible EV/EBITDA) · tickers link to the underlying source · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. All 6 rated rows are in this appendix and in the companion workbook, which carries the complete field set. Names without an eligible multiple are listed in the companion workbook. Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 17 Company Ticker Segment EV EV/EBITDA (CY2027E) Rev growth EBITDA margin Rule of 40 PREMIUM — ≥22.2x · median 28.5x · 2 companies Honeywell International Inc. HON Diversified propulsion platforms with aerospace engine… $155B 30.7x 2% 22% 26 GE Aerospace GE Defence propulsion and rocket motors $352B 26.2x 11% 24% 35 CORE — 8.3x–22.2x · median 9.4x · 2 companies Cummins Inc. CMI Industrial engine packaging and drive equipment $78.5B 10.0x 9% 18% 28 Brunswick Corporation BC Recreational marine and powersports propulsion $7.0B 8.8x 5% 13% 19 DISCOUNT — <8.3x · median 7.3x · 2 companies Garrett Motion Inc. GTX Light-vehicle powertrain and boosting content $6.2B 8.2x 5% 19% 24 BorgWarner Inc. BWA Light-vehicle powertrain and boosting content $14.5B 6.3x 4% 15% 20

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    06 · PRECEDENT TRANSACTIONS (1 OF 1)

    All Precedent Transactions with Disclosed Terms, Newest First

    Lists all seven precedent transactions with disclosed terms, sorted newest first.

    This is the complete list of transactions carrying disclosed terms: seven out of twenty-three recorded, sorted newest first. Multiples are measured on LTM financials at announcement, consistent with the case studies earlier in the deck. Transactions recorded without a disclosed value or multiple sit in the companion workbook rather than in this list.

    Everything on this page

    06 · PRECEDENT TRANSACTIONS (1 OF 1) All Precedent Transactions with Disclosed Terms, Newest First 7 transactions with disclosed terms in this tier (23 recorded) · multiples on LTM financials at announcement where disclosed · deal values link to the underlying filing · as of 2026-09-28 Source: NeuraCap analytics platform; market data and consensus estimates as of 2026-09-28; company disclosures via SEC EDGAR where linked. 30 precedent record(s) carry data-quality flags (deal value unit unresolved; divestiture roles reassigned; duplicate precedent id); figures are shown as recorded in the filing. 16 recorded transactions with neither a disclosed value nor a multiple are omitted from the precedent list and the case studies (kept in the companion workbook). Deal multiples are LTM at announcement (Definitive, from filings); they are not directly comparable to the CY2027E public basis and no spread is claimed. Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 18 Date Transaction EV EV/LTM Rev EV/LTM EBITDA Why it matters Jun-2023 Barnes Group Inc. → MB Aerospace Holdings Inc. n/a n/a 11.4x Barnes Group Inc. agreed in Jun-2023 to acquire MB Aerospace Holdings Inc. at 11.4x EBITDA. The shape of the transaction suggests an industrial buyer adding certified engine-component and repair capacity to an existing aerospace position. Dec-2022 L3Harris Technologies, Inc. → Aerojet Rocketdyne Holdings, Inc. $4.7B 2.2x 15.9x L3Harris Technologies, Inc. agreed in Dec-2022 to acquire Aerojet Rocketdyne Holdings, Inc., recorded at $4.7B. It is the second agreement for the same target in this record, and a defence prime taking ownership of propulsion capacity. Sep-2022 Parker Hannifin Corp. → Meggitt plc n/a n/a 16.3x Parker Hannifin Corp. agreed in Sep-2022 to acquire Meggitt plc at 16.3x EBITDA, the highest disclosed earnings multiple in this record. The fit reads as motion and control content extending into certified aerospace systems and their service tail. Dec-2020 Lockheed Martin Corporation → Aerojet Rocketdyne Holdings, Inc. n/a n/a 14.9x Lockheed Martin Corporation agreed in Dec-2020 to acquire Aerojet Rocketdyne Holdings, Inc. at 14.9x EBITDA. The later agreement for the same target was struck at a higher earnings multiple, which is useful context on how defence propulsion capacity was valued across… Oct-2020 KPS Capital Partners → Garrett Motion Inc. $1.3B n/a n/a KPS Capital Partners agreed in Oct-2020 to acquire Garrett Motion Inc., recorded at $1.3B. Financial buyers in this sector concentrate where earnings behave like service income, and this is the one non-strategic buyer among the 7 transactions in the record. Dec-2012 General Electric Company → Avio S.p.A. n/a n/a 8.5x General Electric Company agreed in Dec-2012 to acquire Avio S.p.A. at 8.5x EBITDA. An engine originator adding qualified aero-engine component and transmission capacity is the clearest read of the fit. Jul-2012 GKN plc → Volvo Aero Corporation n/a n/a 8.4x GKN plc agreed in Jul-2012 to acquire Volvo Aero Corporation at 8.4x EBITDA, the lowest disclosed earnings multiple in this record. It sits a decade before the aerospace transactions above, so treat it as context on range rather than as a current reference point.

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    06 · METHODOLOGY

    Sources, Assumptions and Data Quality

    Explains the report's sources, valuation basis, exclusions and data-quality flags.

    This page lays out the valuation basis, the exclusions applied and the data-quality flags on the underlying transaction record. It shows where each figure in the deck originates, so the analysis behind any page can be checked against its source. That grounding is what makes the comparisons on the prior pages usable rather than just asserted.

    Everything on this page

    06 · METHODOLOGY Sources, Assumptions and Data Quality How this report was built, what was excluded, and where every underlying disclosure lives · as of 2026-09-28 Every figure in this report links to the record it was taken from. Where a figure has no link, the appendix names its source and the basis on which it was read. Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice 19 VALUATION BASIS Primary valuation basis: EV / EBITDA on CY2027E consensus (6 of 10 companies eligible; multiples failing the platform's plausibility gates are excluded, never plotted). EV / EBITDA on CY2027E is the lead convention: it is the sector-appropriate prior for Propulsion and Engine Systems and it clears the coverage gate with 6 of 10 companies (60%). EV / Revenue, P / E are carried as a cross-check. The set earns: 6 of the 6 companies with a reported forward EBITDA carry a meaningful one, so the profit multiple leads and a revenue multiple would understate what the market is pricing. DATA QUALITY & EXCLUSIONS 1 records were excluded or quarantined by the platform's validation gates (unit errors, implausible ratios, ineligible securities and classification failures); the full ledger ships in the companion tables and never feeds a statistic in this report. DEFINITIVE VS DIRECTIONAL Definitive content is disclosed or consensus data passed through stated arithmetic. Directional content — tier boundaries, situation cuts, "why it matters" commentary, the agenda pages — is NeuraCap analyst judgment and is labeled as such where it appears. WHAT THIS REPORT IS NOT This report characterises a sector. It does not recommend buying, selling or holding any security, and no statement in it should be read as investment advice or a price target. WHERE THE DATA LIVES 442 registered source documents stand behind the figures in this report. Metric hyperlinks throughout the deck open the specific filing or data record; by publisher: sec.gov (441) · home.treasury.gov (1). The companion workbook beside this deck carries the complete source index.

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    In This Set, the Higher Multiples Sit with the Service-Heavy Propulsion Names.

    Closing line restating that the higher multiples in this set sit with the service-heavy propulsion names.

    In this set, the higher multiples sit with the service-heavy propulsion names, and that's the one line worth carrying out of the room. The companion tables alongside this deck carry the full universe and source index for anyone who wants to trace a specific figure further.

    Everything on this page

    In This Set, the Higher Multiples Sit with the Service-Heavy Propulsion Names. NeuraCap AI — Propulsion and Engine Systems Coverage September 2026 · Prepared by NeuraCap AI · Confidential Propulsion and Engine Systems Coverage | September 2026 | Confidential | Not investment advice Sources & methodology 20

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