The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how TransDigm (NYSE: TDG) and the rest of the aerospace stocks fared in Q4.
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 14 aerospace stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 3.2% on average since the latest earnings results.
TransDigm (NYSE: TDG)
Supplying parts for nearly all aircraft currently in service, TransDigm (NYSE: TDG) develops and manufactures components and systems for military and commercial aviation.
TransDigm reported revenues of $2.01 billion, up 12.1% year on year. This print fell short of analysts’ expectations by 1.5%. Overall, it was a slower quarter for the company with a miss of analysts’ organic revenue estimates and full-year revenue guidance slightly missing analysts’ expectations.
"I am very pleased with our first quarter operating results and strong start to our fiscal 2025," stated Kevin Stein, TransDigm Group's President and Chief Executive Officer.
The stock is up 1.3% since reporting and currently trades at $1,373.
Is now the time to buy TransDigm? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $1.03 billion, up 14.9% year on year, outperforming analysts’ expectations by 5.4%. The business had an incredible quarter with a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 15.9% since reporting. It currently trades at $263.98.
Is now the time to buy HEICO? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Boeing (NYSE: BA)
One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE: BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.
Boeing reported revenues of $15.24 billion, down 30.8% year on year, falling short of analysts’ expectations by 6.4%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Boeing delivered the slowest revenue growth in the group. The stock is flat since the results and currently trades at $173.57.
Read our full analysis of Boeing’s results here.
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 $69.56 million, up 9.6% year on year. This result lagged analysts' expectations by 6.7%. Taking a step back, it was a mixed quarter as it also recorded full-year EBITDA guidance exceeding analysts’ expectations.
Redwire achieved the highest full-year guidance raise but had the weakest performance against analyst estimates among its peers. The stock is up 3.5% since reporting and currently trades at $11.65.
Read our full, actionable report on Redwire here, it’s free.
Hexcel (NYSE: HXL)
Founded shortly after World War II by a group of engineers from UC Berkley, Hexcel (NYSE: HXL) manufactures lightweight composite materials primarily for the aerospace and defense sectors.
Hexcel reported revenues of $473.8 million, up 3.6% year on year. This number was in line with analysts’ expectations. However, it was a softer quarter as it logged full-year EPS guidance missing analysts’ expectations.
Hexcel had the weakest full-year guidance update among its peers. The stock is down 14.7% since reporting and currently trades at $58.40.
Read our full, actionable report on Hexcel here, it’s free.
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