Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Howmet (NYSE: HWM) 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 strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was 0.8% below.

While some aerospace stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.2% 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 $2.05 billion, up 9.2% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ Engine products revenue estimates and a solid beat of analysts’ adjusted operating income estimates.

Unsurprisingly, the stock is down 10.2% since reporting and currently trades at $172.60.

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

Best Q2: 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 $107.4 million, up 39.3% year on year, outperforming analysts’ expectations by 24.4%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

AerSale delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 43.4% since reporting. It currently trades at $8.85.

Is now the time to buy AerSale? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: 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 $204.7 million, up 3.3% year on year, falling short of analysts’ expectations by 1.7%. It was a slower quarter as it posted a significant miss of analysts’ EBITDA estimates.

The stock is flat since the results and currently trades at $35.06.

Read our full analysis of Astronics’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 $22.75 billion, up 34.9% year on year. This number topped analysts’ expectations by 5.3%. Zooming out, it was a satisfactory quarter as it also logged a solid beat of analysts’ sales volume estimates but a significant miss of analysts’ adjusted operating income estimates.

The stock is down 4.8% since reporting and currently trades at $225.

Read our full, actionable report on Boeing here, it’s free.

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 $2.24 billion, up 9.3% year on year. This result missed analysts’ expectations by 2.8%. Overall, it was a slower quarter as it also produced a miss of analysts’ organic revenue estimates and a significant miss of analysts’ EPS estimates.

TransDigm had the weakest full-year guidance update among its peers. The stock is down 13% since reporting and currently trades at $1,400.

Read our full, actionable report on TransDigm here, it’s free.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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