This week, we're presenting the 23-year warranty expenses of the U.S.-based aerospace industry. The vast majority of the top warranty reporters in this industry are military contractors, in addition to their commercial operations. For some, defense contracts are more profitable than commercial sales.

While defense contractors are accountable for warranty work, they do not report the warranty expenses attached to military aircraft and components in their public filings. Thus, the data in this newsletter only represent the warranty expenses associated with commercial and business airframes, jet engines, avionics, and other components.

As such, although we do have warranty data from General Dynamics and RTX, we do not have warranty data from Lockheed Martin or Northrop Grumman.

This newsletter includes data from 68 U.S.-bsaed manufacturers in the aerospace industry, of which 18 reported warranty expenses in 2025.

Those 18 manufacturers were: Boeing Co., RTX Corp., GE Aerospace, General Dynamics Corp., Honeywell International Inc., Textron Inc., Teledyne Technologies Inc., Woodward Inc., Moog Inc., Leonardo DRS Inc., OSI Systems Inc., Astronics Corp., Hexcel Corp., Spirit AeroSystems Holdings Inc., Heico Corp., Park-Ohio Holdings Corp., Gogo Inc., and Innovative Solutions & Support Inc.

GE Aerospace is the successor of the parent General Electric, following the spin-off of GE Health Care and GE Vernova, a years-long process completed in April 2024. 2025 was the second year that GE Aerospace reported separately from GE Vernova. In our newsletter "GE's Warranty Expenses by Industry," we found that the Aerospace business represented about 15% to 25% of the former General Electric's warranty expenses, while Vernova, the power business, represented about 55% to 65%.

RTX is the new name of Raytheon Technologies, the conglomerate formed by the 2020 merger of United Technologies and Raytheon. The name was changed to RTX in July 2023.

Spirit AeroSystems spun off its Airbus-related assets to Airbus in April 2025, and Boeing officially took ownership in December 2025, the culmination of a deal announced in July 2024. As such, Spirit AeroSystems wound down its warranty expenses in the second and third quarters of 2025, and did not report in the fourth quarter of 2025.

Spirit AeroSystems was initially a subsidiary of Boeing, which was spun-off in 2005. Spirit AeroSystems spent 20 years as a separate corporate entity, the later years marred by the Boeing 737 MAX 8 and MAX 9 groundings, for which Boeing partially blamed fuselage parts supplied by Spirit AeroSystems.

In addition, Triumph Group Inc. was acquired by private equity firms Warburg Pincus and Berkshire Partners, a deal announced in February 2025, and finalized in July 2025.

For each manufacturer, we perused their annual reports and quarterly financial statements, and gathered three warranty metrics: the amount of claims paid, the amount of accruals made, and the end-balance of the warranty reserve fund.

In addition, we gathered data on each manufacturer's product sales revenue. These data only include civilian aircraft, excluding revenue from defense contracts, since we do not have warranty data for military aircraft.

We used the product revenue data to calculate our two warranty expense rates: claims as a percentage of sales (the claims rate), and accruals as a percentage of sales (the accrual rate).

Warranty Claims Totals

We divided the U.S.-based aerospace industry into two groups, aircraft OEMs and component suppliers.

In 2025, the U.S.-based aerospace OEMs that reported their warranty expenses were Boeing, General Dynamics, and Textron.

The U.S.-based aerospace suppliers that reported warranty expenses in 2025 were: RTX, GE Aerospace, Honeywell, Teledyne, Woodward, Moog, Leonardo DRS, Spirit AeroSystems, OSI Systems, Astronics, Hexcel, Heico, Park-Ohio Holdings, Gogo, Innovative Solutions & Support, and Taylor Devices Inc.

Figure 1 shows the warranty claims paid by the U.S.-based aerospace OEMs and suppliers, from 2003 to 2025.

In total, the U.S. aerospace manufacturers paid $1.35 billion in warranty claims in 2025, a -4% decrease from 2024.

In 2025, the U.S. aerospace OEMs paid a total of $604 million in warranty claims, a 38% increase from 2024.

Boeing paid $388 million in claims in 2025, a -1% decrease from 2024. General Dynamics paid $127 million in claims, a 21% increase. Textron paid $89 million in claims, a 24% increase.

In 2025, the U.S.-based aerospace suppliers paid $745 million in warranty claims, a -10% decrease from 2024.

RTX paid $261 million in warranty claims in 2025, a 6% increase from 2024. GE Aerospace paid $242 million in claims, a -25% decrease. Honeywell paid $148 million in claims, a -13% decrease.

Woodward paid $21 million in claims in 2025, a 47% increase from 2024. Leonardo DRS paid $21 million in claims, a 21% increase. Teledyne paid $18 million in claims, a -28% decrease.

Warranty Accrual Totals

Figure 2 shows the total warranty accruals made by the U.S.-based aerospace OEMs and suppliers, from 2003 to 2025.

In total, the U.S. aerospace manufacturers set aside $1.31 billion in warranty accruals in 2025, a 22% increase from 2024.

In 2025, the U.S.-based aerospace OEMs set aside a total of $509 million in warranty accruals, a 38% increase from 2024.

Boeing set aside $184 million in warranty accruals in 2025, a 127% increase from 2024. General Dynamics set aside $143 million in 2025, a 4% increase. Textron set aside $82 million in accruals, a 4% increase.

In 2025, the U.S. aerospace suppliers set aside $901 million in warranty accruals, a 16% increase from 2024.

RTX set aside $294 million in warranty accruals in 2025, a 36% increase. GE Aerospace set aside $242 million in accruals, a -12% decrease. Honeywell set aside $$144 million in accruals, a -23% decrease.

Spirit AeroSystems set aside $118 million in accruals in 2025, the result of an uncharacteristic $116 million accrual in the first quarter of the year. This was an increase of 1,638% from 2024's total warranty accruals of $7. It's likely that this large amount of quarterly warranty accruals was related to the sale to Airbus of assets related to the A350, A321, and A220 in early 2025.

Leonardo DRS set aside $25 million in accruals in 2025, a 56% increase from the year prior. Teledyne set aside $24 million in accruals, a -6% decrease. Woodward set aside $20 million in accruals, a 65% increase.

Moog set aside $8 million in warranty accruals in 2025, a -7% decrease. OSI Systems set aside $5 million in accruals, a -31% decrease. Astronics set aside $5 million, a -55% decrease. Gogo set aside $5 million, a 70% increase. Heico set aside $4 million, a 30% increase. Hexel set aside $3 million, a -22% decrease.

Warranty Expense Rates

Over 23 years, the aerospace OEMs had an average warranty claims rate of 0.81%, with a standard deviation of 0.18%, and an average warranty accrual rate of 0.81%, with a standard deviation of 0.18% as well.

For the following two charts, we present the average warranty claims and accrual rates of the two segments of the aerospace industry, OEMs and suppliers.

Figure 3 shows the average quarterly warranty claims and accrual rates of the aerospace OEMs, from 2003 to 2025.

Over 23 years, the aerospace OEMs had an average warranty claims rate of 0.87%, with a standard deviation of 0.25%, and an average warranty accrual rate of 0.81%, with a standard deviation of 0.19%.

In 2025, the aerospace OEMs had an average warranty claims rate of 0.66%. In 2025, the quarterly claims rates ranged from 0.64% in the third quarter, to 0.72% in the fourth quarter.

In 2025, the aerospace OEMs had an average warranty accrual rate of 0.72%. The quarterly accrual rates ranged from 0.63% in the fourth quarter, to 0.88% in the first quarter.

Figure 4 shows the average quarterly warranty claims and accrual rates of the aerospace suppliers, from 2003 to 2025.

Over 23 years, the aerospace suppliers had an average warranty claims rate of 0.75%, with a standard deviation of 0.21%, and an average warranty accrual rate of 0.80%, with a standard deviation of 0.22%.

Overall, we see that the average warranty expense rates are slightly higher for the airframe OEMs, compared to the component suppliers. In Figure 3, we also see a little more volatility from the OEMs, where warranty costs are directly affected by recalls and market trends, compared to the suppliers in Figure 4.

In 2025, the aerospace suppliers had an average warranty claims rate of 0.51%. The quarterly claims rates ranged from 0.46% in the second quarter, to 0.60% in the fourth quarter.

The aerospace suppliers had an average warranty accrual rate of 0.76% in 2025. The quarterly accrual rates ranged from 0.62% in the fourth quarter, to 0.97% in the first quarter.

Warranty Reserve Balances

Figure 5 shows the total warranty reserves held by the U.S.-based aerospace OEMs and suppliers that report their warranty expenses, from 2003 to 2025.

At the end of 2025, the U.S.-based aerospace manufacturers held a total of $5.68 billion in warranty reserves, a 13% increase from the end of 2024.

At the end of 2025, the U.S. aerospace OEMs held $3.64 billion in warranty reserves, a 23% increase from the end of 2024.

Boeing held $2.80 billion in warranty reserves at the end of 2025, a 31% increase from the end of 2024. General Dynamics held $656 million in warranty reserves, a 2% increase. Textron held $183 million in reserves, a 6% increase.

At the end of 2025, the U.S. aerospace suppliers held $2.05 billion in warranty reserves, a -2% decrease from the end of 2024.

RTX held $1.04 billion in warranty reserves at the end of 2025, a 4% increase. GE Aerospace held $595 million in reserves, a 1% increase. Honeywell held $220 million in reserves, a -7% decrease.

Teledyne held $57 million in warranty reserves at the end of 2025, a 13% increase. Leonardo DRS held $33 million in reserves, a 14% increase. Moog held $24 million in reserves, a 7% increase.

Astronics held $21 million in warranty reserves, a 15% increase. Woodward held $18 million in reserves, a -6% decrease. OSI Systems held $10 million in reserves, a -10% decrease. Heico held $6 million in reserves, a 43% increase. Gogo held $6 million, a 40% increase.

Check out the rest of our series of 23-year charts:

• 23rd Annual Product Warranty Report
• U.S. Passenger Vehicle Warranty Expenses
• U.S. Truck & Bus Warranty Expenses
• U.S. Auto Parts & Powertrain Warranty Expenses