Aerospace Stocks Q3 Teardown: TransDigm (NYSE:TDG) Vs The Rest

Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at TransDigm (NYSE:TDG) 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 15 aerospace stocks we track reported a mixed Q3. As a group, revenues missed analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was in line.

Luckily, aerospace stocks have performed well with share prices up 21.4% on average since the latest earnings results.

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 $2.44 billion, up 11.5% year on year. This print exceeded analysts’ expectations by 1.6%. Overall, it was a strong quarter for the company with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ organic revenue estimates.

"We are pleased with our team's performance and operating results for both the fourth quarter and full fiscal year. Our strong fourth quarter finish resulted in surpassing the high end of our most recently issued fiscal 2025 revenue and EBITDA As Defined guidance," stated Mike Lisman, TransDigm Group's President and Chief Executive Officer.

Interestingly, the stock is up 6.7% since reporting and currently trades at $1,381.

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

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 $795.3 million, up 15.9% year on year, outperforming analysts’ expectations by 4.4%. The business had an exceptional quarter with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ revenue estimates.

The market seems happy with the results as the stock is up 7.7% since reporting. It currently trades at $97.

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

Weakest Q3: 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. Interestingly, the stock is up 9.6% since the results and currently trades at $7.66.

Read our full analysis of AerSale’s results here.

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 $211.4 million, up 3.8% year on year. This result was in line with analysts’ expectations. Overall, it was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Astronics had the weakest full-year guidance update among its peers. The stock is up 39.2% since reporting and currently trades at $66.80.

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

ATI (NYSE:ATI)

With its materials flying in nearly every commercial and military aircraft in service today, ATI (NYSE:ATI) produces highly specialized materials and components for aerospace, defense, medical, and energy applications using advanced metallurgy and manufacturing processes.

ATI reported revenues of $1.13 billion, up 7.1% year on year. This print met analysts’ expectations. It was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

The stock is up 34.6% since reporting and currently trades at $123.48.

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

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