Looking back on aerospace stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Redwire (NYSE: RDW) 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 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 1.1% since the latest earnings results.

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. This print fell short of analysts’ expectations by 21.7%. Overall, it was a disappointing quarter for the company with full-year revenue guidance missing analysts’ expectations.

Redwire scored the fastest revenue growth but had the weakest full-year guidance update of the whole group. Still, the market seems discontent with the results. The stock is down 4.3% since reporting and currently trades at $5.53.

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

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 achieved the biggest analyst estimates beat among its peers. The market seems content with the results as the stock is up 4.3% since reporting. It currently trades at $83.12.

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

AerSale (NASDAQ: ASLE)

Providing a one-stop shop that integrates multiple services and product offerings, AerSale (NASDAQ: ASLE) delivers full-service support to mid-life commercial aircraft.

AerSale reported revenues of $71.19 million, down 13.9% year on year, falling short of analysts’ expectations by 30.5%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and adjusted operating income estimates.

AerSale delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 7.4% since the results and currently trades at $6.48.

Read our full analysis of AerSale’s results here.

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 $23.27 billion, up 30.4% year on year. This result topped analysts’ expectations by 6.3%. Zooming out, it was a softer quarter as it logged a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

The stock is down 15.2% since reporting and currently trades at $189.23.

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

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 surpassed analysts’ expectations by 2.3%. It was a strong quarter as it also recorded an impressive beat of analysts’ Engine products revenue estimates and an impressive beat of analysts’ Fastening systems revenue estimates.

The stock is flat since reporting and currently trades at $204.59.

Read our full, actionable report on Howmet 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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