As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the aerospace and defense industry, including Byrna (NASDAQ: BYRN) and its peers.

Emissions and automation are important in aerospace, so companies that boast advances in these areas can take market share. On the defense side, geopolitical tensions–whether it be Russia’s invasion of Ukraine or China’s aggression toward Taiwan–have highlighted the need for consistent or even elevated defense spending. As for challenges, demand for aerospace and defense products can ebb and flow with economic cycles and national defense budgets, which are unpredictable and particularly painful for companies with high fixed costs.

The 29 aerospace and defense stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was 0.7% below.

While some aerospace and defense stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.1% since the latest earnings results.

Byrna (NASDAQ: BYRN)

Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ: BYRN) is a provider of non-lethal weapons.

Byrna reported revenues of $28.18 million, up 35.1% year on year. This print was in line with analysts’ expectations, and overall, it was an exceptional quarter for the company with a beat of analysts’ EPS eand EBITDA estimates.

Unsurprisingly, the stock is down 23.7% since reporting and currently trades at $17.40.

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

Best Q3: RTX (NYSE: RTX)

Originally focused on refrigeration technology, Raytheon (NSYE:RTX) provides a a variety of products and services to the aerospace and defense industries.

RTX reported revenues of $22.48 billion, up 11.9% year on year, outperforming analysts’ expectations by 5.4%. The business had a stunning quarter with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 7.1% since reporting. It currently trades at $172.38.

Is now the time to buy RTX? 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 21.7%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations and a significant miss of analysts’ revenue estimates.

Redwire delivered the fastest revenue growth but had the weakest full-year guidance update in the group. As expected, the stock is down 26.5% since the results and currently trades at $5.43.

Read our full analysis of Redwire’s results here.

Cadre (NYSE: CDRE)

Originally known as Safariland, Cadre (NYSE: CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.

Cadre reported revenues of $155.9 million, up 42.5% year on year. This print lagged analysts' expectations by 2.7%. Aside from that, it was a mixed quarter as it also produced an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ Products revenue estimates.

The stock is down 2.4% since reporting and currently trades at $41.50.

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

Huntington Ingalls (NYSE: HII)

Building Nimitz-class aircraft carriers used in active service, Huntington Ingalls (NYSE: HII) develops marine vessels and their mission systems and maintenance services.

Huntington Ingalls reported revenues of $3.19 billion, up 16.1% year on year. This number surpassed analysts’ expectations by 8.1%. It was a strong quarter as it also recorded a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ EBITDA estimates.

The stock is up 5.6% since reporting and currently trades at $315.23.

Read our full, actionable report on Huntington Ingalls 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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