Looking back on aerospace stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Ducommun (NYSE: DCO) 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 14 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.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
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 $202.3 million, up 2.7% year on year. This print exceeded analysts’ expectations by 1.3%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ adjusted operating income estimates.
“Another excellent quarter for Ducommun as we continue to make solid progress towards our VISION 2027 goals with both gross margin and Adjusted EBITDA margin and dollars at record levels. Net revenue grew 3% to $202.3 million as anticipated, led by strength in our defense business which offset the continued headwinds in commercial aerospace OEM demand,” said Stephen G. Oswald, chairman, president and chief executive officer.
Interestingly, the stock is up 1.5% since reporting and currently trades at $93.03.
Is now the time to buy Ducommun? Access our full analysis of the earnings results here, it’s 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 achieved the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 38.6% since reporting. It currently trades at $8.55.
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.
Interestingly, the stock is up 13.3% since the results and currently trades at $40.08.
Read our full analysis of Astronics’s results here.
HEICO (NYSE: HEI)
Founded in 1957, HEICO (NYSE: HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.
HEICO reported revenues of $1.15 billion, up 15.7% year on year. This result surpassed analysts’ expectations by 3%. It was an exceptional quarter as it also put up a solid beat of analysts’ organic revenue and adjusted operating income estimates.
The stock is up 4.1% since reporting and currently trades at $317.88.
Read our full, actionable report on HEICO here, it’s free.
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 $754.5 million, up 14.9% year on year. This print beat analysts’ expectations by 8.6%. Overall, it was a stunning quarter as it also recorded an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
The stock is flat since reporting and currently trades at $74.56.
Read our full, actionable report on AAR here, it’s free.
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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