Looking back on aerospace stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Rocket Lab (NASDAQ:RKLB) 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.
Thankfully, share prices of the companies have been resilient as they are up 8% on average since the latest earnings results.
Rocket Lab (NASDAQ:RKLB)
Becoming the first private company in the Southern Hemisphere to reach space, Rocket Lab (NASDAQ:RKLB) offers rockets designed for launching small satellites.
Rocket Lab reported revenues of $122.6 million, up 32.1% year on year. This print exceeded analysts’ expectations by 0.8%. Overall, it was an exceptional quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations.
Rocket Lab achieved the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 3.8% since reporting and currently trades at $24.01.
We think Rocket Lab is a good business, but is it a buy today? Read our full report 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 a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 10.8% since reporting. It currently trades at $401.82.
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 13.2% since the results and currently trades at $6.10.
Read our full analysis of AerSale’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 $678.2 million, up 19.5% year on year. This number missed analysts’ expectations by 2.8%. Taking a step back, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates but a miss of analysts’ Integrated Solutions revenue estimates.
The stock is down 9.1% since reporting and currently trades at $62.04.
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 $883.6 million, up 5.8% year on year. This result beat analysts’ expectations by 5.7%. Overall, it was a strong quarter as it also produced an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EBITDA estimates.
The stock is up 13.3% since reporting and currently trades at $205.70.
Read our full, actionable report on Woodward 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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