Q2 Earnings Outperformers: Redwire (NYSE:RDW) And The Rest Of The Aerospace Stocks

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Redwire (NYSE:RDW) and the best and worst performers in the aerospace industry.

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.

While some aerospace stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.3% 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 $61.76 million, down 20.9% year on year. This print fell short of analysts’ expectations by 23.3%. Overall, it was a slower quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.

“During the second quarter, we completed our acquisition of Edge Autonomy, establishing Redwire as an integrated global space and defense tech company specializing in multi-domain solutions,” stated Peter Cannito, Chairman and Chief Executive Officer of Redwire.

Redwire pulled off the highest full-year guidance raise but had the weakest performance against analyst estimates and weakest performance against analyst estimates of the whole group. Still, the market seems discontent with the results. The stock is down 39.7% since reporting and currently trades at $8.97.

Read our full report on Redwire 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 pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 39.7% since reporting. It currently trades at $8.62.

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 4.6% since the results and currently trades at $36.99.

Read our full analysis of Astronics’s results here.

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 logged an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.

The stock is up 1.9% since reporting and currently trades at $76.51.

Read our full, actionable report on AAR 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 $915.4 million, up 8% year on year. This result surpassed analysts’ expectations by 3.4%. It was a strong quarter as it also recorded an impressive beat of analysts’ organic revenue estimates and full-year EPS guidance exceeding analysts’ expectations.

The stock is down 4.2% since reporting and currently trades at $247.67.

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.

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

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