Looking back on aerospace stocks’ Q1 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 strong Q1. As a group, revenues missed analysts’ consensus estimates by 2.2% while next quarter’s revenue guidance was in line.
Luckily, aerospace stocks have performed well with share prices up 11.5% on average 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 $61.4 million, down 30.1% year on year. This print fell short of analysts’ expectations by 16.5%, but it was still a strong quarter for the company with a solid beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations.
Redwire achieved the highest full-year guidance raise but had the slowest revenue growth of the whole group. Unsurprisingly, the stock is up 8.8% since reporting and currently trades at $12.29.
Is now the time to buy Redwire? Access our full analysis of the earnings results here, it’s free.
Best Q1: Curtiss-Wright (NYSE: CW)
Formed from a merger of 12 companies, Curtiss-Wright (NYSE: CW) provides a range of products and services to the aerospace, industrial, electronic, and maritime industries.
Curtiss-Wright reported revenues of $805.6 million, up 13% year on year, outperforming analysts’ expectations by 5%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 15.3% since reporting. It currently trades at $418.03.
Is now the time to buy Curtiss-Wright? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $65.78 million, down 27.4% year on year, falling short of analysts’ expectations by 26.3%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
AerSale delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 12.5% since the results and currently trades at $6.15.
Read our full analysis of AerSale’s results here.
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 $194.1 million, up 1.7% year on year. This number topped analysts’ expectations by 0.7%. Overall, it was an exceptional quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ EPS estimates.
The stock is up 15% since reporting and currently trades at $67.34.
Read our full, actionable report on Ducommun here, it’s free.
Woodward (NASDAQ: WWD)
Initially designing controls for water wheels in the early 1900s, Woodward (NASDAQ: WWD) designs, services, and manufactures energy control products and optimization solutions.
Woodward reported revenues of $883.6 million, up 5.8% year on year. This result beat analysts’ expectations by 5.7%. It was a strong quarter as it also put up a solid beat of analysts’ organic revenue estimates and an impressive beat of analysts’ EBITDA estimates.
The stock is up 18.4% since reporting and currently trades at $215.
Read our full, actionable report on Woodward here, it’s free.
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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