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 Ducommun (NYSE: DCO) 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 15 aerospace stocks we track reported a strong Q1. As a group, revenues missed analysts’ consensus estimates by 1.4% while next quarter’s revenue guidance was 0.7% below.
Luckily, aerospace stocks have performed well with share prices up 21.2% on average 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 $194.1 million, up 1.7% year on year. This print exceeded analysts’ expectations by 0.7%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ EPS estimates.
“An excellent start to 2025 for Ducommun as we continue to make good progress towards our VISION 2027 goals with record gross margins during the quarter along with strong Adjusted EBITDA margins. Net revenue grew 2% to $194.1 million driven by strength in our defense business which helped us overcome the anticipated weakness in commercial aerospace production rates along with destocking,” said Stephen G. Oswald, chairman, president and chief executive officer.
Interestingly, the stock is up 40.5% since reporting and currently trades at $82.27.
Is now the time to buy Ducommun? 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 30.8% since reporting. It currently trades at $474.01.
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 16.2% since the results and currently trades at $5.89.
Read our full analysis of AerSale’s results here.
Textron (NYSE: TXT)
Listed on the NYSE in 1947, Textron (NYSE: TXT) provides products and services in the aerospace, defense, industrial, and finance sectors.
Textron reported revenues of $3.31 billion, up 5.5% year on year. This number topped analysts’ expectations by 2.3%. It was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ organic revenue estimates.
The stock is up 21% since reporting and currently trades at $80.
Read our full, actionable report on Textron here, it’s free.
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 $205.9 million, up 11.3% year on year. This print surpassed analysts’ expectations by 7.3%. Overall, it was an exceptional quarter as it also recorded a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Astronics delivered the biggest analyst estimates beat among its peers. The stock is up 39.5% since reporting and currently trades at $32.76.
Read our full, actionable report on Astronics 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.
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