Looking back on aerospace stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including HEICO (NYSE: HEI) and its peers.

Aerospace companies often possess technical expertise and have made significant capital investments to produce complex products. It is an industry where innovation is important, and lately, emissions and automation are in focus, so companies that boast advances in these areas can take market share. On the other hand, demand for aerospace products can ebb and flow with economic cycles and geopolitical tensions, which can be particularly painful for companies with high fixed costs.

The 15 aerospace stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was 0.7% below.

Thankfully, share prices of the companies have been resilient as they are up 9% on average since the latest earnings results.

HEICO (NYSE: HEI)

Founded in 1957, HEICO (NYSE: HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.

HEICO reported revenues of $1.21 billion, up 19.3% year on year. This print exceeded analysts’ expectations by 3.2%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ organic revenue estimates.

Interestingly, the stock is up 6.7% since reporting and currently trades at $330.71.

Read why we think that HEICO is one of the best aerospace stocks, our full report is free.

Best Q3: AAR (NYSE: AIR)

The first third-party MRO approved by the FAA for Safety Management System Requirements, AAR (NYSE: AIR) is a provider of aircraft maintenance services

AAR reported revenues of $739.6 million, up 11.8% year on year, outperforming analysts’ expectations by 7.4%. The business had an exceptional quarter with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ revenue estimates.

AAR pulled off the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 4.7% since reporting. It currently trades at $83.45.

Is now the time to buy AAR? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Redwire (NYSE: RDW)

Based in Jacksonville, Florida, Redwire (NYSE: RDW) is a provider of systems and components used in space infrastructure.

Redwire reported revenues of $103.4 million, up 50.7% year on year, falling short of analysts’ expectations by 22.4%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

Interestingly, the stock is up 8.8% since the results and currently trades at $8.04.

Read our full analysis of Redwire’s results here.

Textron (NYSE: TXT)

Listed on the NYSE in 1947, Textron (NYSE: TXT) provides products and services in the aerospace, defense, industrial, and finance sectors.

Textron reported revenues of $3.60 billion, up 5.1% year on year. This result lagged analysts' expectations by 1.9%. Zooming out, it was a mixed quarter as it also recorded a solid beat of analysts’ EBITDA estimates but a miss of analysts’ revenue estimates.

The stock is up 7.4% since reporting and currently trades at $88.67.

Read our full, actionable report on Textron here, it’s free for active Edge members.

Ducommun (NYSE: DCO)

California’s oldest company, Ducommun (NYSE: DCO) is a provider of engineering and manufacturing services for high-performance products primarily within the aerospace and defense industries.

Ducommun reported revenues of $212.6 million, up 5.5% year on year. This print was in line with analysts’ expectations. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.

The stock is up 3.5% since reporting and currently trades at $95.11.

Read our full, actionable report on Ducommun here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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