Resilient Business Models in Aerospace and Industrial Sectors

The aerospace and industrial sectors have long been arenas of high-stakes innovation, where the line between triumph and disaster is razor-thin. Recent developments at SpaceX—particularly the August 26, 2025, success of Starship Flight 10—highlight the power of perseverance, operational rigor, and long-term vision. This test, which saw both the Super Heavy booster and Starship upper stage achieve controlled splashdowns, marked a pivotal moment in the race to build a fully reusable interplanetary transportation system. Yet, such breakthroughs are not unique to SpaceX. They echo the legacy of Chung Ju-Yung, the founder of Hyundai, whose frugal yet bold leadership transformed a post-war South Korea into a global industrial powerhouse. By examining these two case studies—and identifying underappreciated companies that share their DNA—investors can uncover opportunities in sectors poised for resilience and growth.

The Mental Models of Resilience: SpaceX and Hyundai

SpaceX's Starship program embodies a philosophy of iterative risk-taking. Flight 10, for instance, tested engine redundancy by simulating a failure during the booster's descent, a move that validated the system's robustness. CEO Elon Musk's emphasis on “frequent, high-risk testing” mirrors Chung Ju-Yung's mantra: “success is 90% determination and 10% confidence.” Chung, who built Hyundai from scratch in the 1950s, prioritized frugality and innovation. He famously reused paper and rejected executive perks, channeling resources into R&D and employee welfare. His approach not only weathered the 1997 Asian Financial Crisis but also positioned Hyundai to lead in hydrogen and electric vehicles—a foresight that now pays dividends as the world shifts toward sustainable energy.

Both leaders share a commitment to operational rigor. SpaceX's rapid development cadence—planning a test flight every three to four weeks—reflects a disciplined approach to learning from failures. Similarly, Chung's “shortening the time” philosophy drove efficiency, whether in manufacturing or governance. These strategies are not just about surviving adversity; they're about building systems that thrive under pressure.

Underappreciated Innovators: DMC Global and Owens Corning

The aerospace and industrial sectors are home to companies that, like SpaceX and Hyundai, combine resilience with strategic vision. Two standouts are DMC Global (NASDAQ: BOOM) and Owens Corning (NYSE: OC).

DMC Global, under the leadership of James O'Leary, has reinvented itself from a volatile defense contractor into a disciplined industrial player. Its NobelClad division, which produces explosion-welded clad metals for aerospace and chemical processing, generates stable cash flows in a niche market. In Q1 2025, DMC improved margins by 12% through automation and inventory optimization. The company's rejection of a $10.18-per-share acquisition offer—choosing instead to focus on margin expansion—echoes Chung Ju-Yung's long-term orientation. At a price-to-book ratio of 0.66 and a forward EV/EBITDA of 4.5x, DMC trades at a significant discount to its intrinsic value. Analysts project a rebound to $16.25 per share, offering a 100% upside from current levels.

Owens Corning, a leader in insulation and roofing materials, exemplifies operational discipline. Despite a 15% stock decline in 2025, the company has returned $3.6 billion to shareholders since 2019 and plans to distribute an additional $2 billion by 2026. Its newly acquired Doors segment is projected to achieve 18% EBITDA margins by 2028, driven by $200 million in cost synergies. With a forward P/E of 10.7 and a P/B ratio of 0.9, Owens Corning trades at a 55.8% discount to its estimated fair value of $161.45. The company's focus on the remodeling segment—60% of its demand—positions it to outperform in a cyclical downturn.

Investment Implications: Aligning with Resilient Models

The common thread among SpaceX, Hyundai, DMC, and Owens Corning is their ability to balance bold innovation with fiscal prudence. For investors, this suggests a focus on companies with:
1. High R&D-to-revenue ratios (e.g., DMC's reinvestment in automation).
2. Strong employee retention and governance (e.g., Owens Corning's shareholder returns).
3. Low debt-to-EBITDA ratios (e.g., DMC's current leverage).

These metrics act as proxies for leadership quality and operational discipline. DMC Global, for instance, is a high-conviction play for investors seeking aerospace exposure at a discount. A buy below $8.50 with a stop-loss at $6.50 targets a $10–$12 range by mid-2026. Owens Corning, meanwhile, offers a long-term opportunity at $100–$110, with a $165 fair value target.

Conclusion: The Future of Resilient Investing

The aerospace and industrial sectors are entering a new era of innovation, driven by companies that embrace the mental models of perseverance, operational rigor, and long-term vision. SpaceX's Starship success and Hyundai's legacy remind us that resilience is not just about surviving adversity—it's about building systems that outlast it. By identifying underappreciated players like DMC and Owens Corning, investors can position themselves to capitalize on the next wave of industrial growth. In a world where volatility is the norm, the ability to adapt and endure is the ultimate competitive advantage.