The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how aerospace stocks fared in Q3, starting with Howmet (NYSE: HWM).

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 13 aerospace stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 2% while next quarter’s revenue guidance was 0.7% below.

While some aerospace stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.3% since the latest earnings results.

Howmet (NYSE: HWM)

Inventing the first forged aluminum truck wheel, Howmet (NYSE: HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.

Howmet reported revenues of $2.09 billion, up 13.8% year on year. This print exceeded analysts’ expectations by 2.3%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ Engine products revenue estimates.

Unsurprisingly, the stock is down 3.6% since reporting and currently trades at $196.15.

Read why we think that Howmet 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 a solid beat of analysts’ adjusted operating income estimates and an impressive 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 3.9% since reporting. It currently trades at $82.83.

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 21.7%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly 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 28.3% since the results and currently trades at $5.30.

Read our full analysis of Redwire’s results here.

Astronics (NASDAQ: ATRO)

Integrating power outlets into many Boeing aircraft, Astronics (NASDAQ: ATRO) is a provider of technologies and services to the global aerospace, defense, and electronics industries.

Astronics reported revenues of $211.4 million, up 3.8% year on year. This number was in line with analysts’ expectations. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Astronics delivered the highest full-year guidance raise among its peers. The stock is up 7.8% since reporting and currently trades at $51.76.

Read our full, actionable report on Astronics 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 result met analysts’ expectations. It was a strong quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.

The stock is down 1.9% since reporting and currently trades at $90.12.

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

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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