Wrapping up Q2 earnings, we look at the numbers and key takeaways for the aerospace stocks, including Hexcel (NYSE: HXL) 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.

Hexcel (NYSE: HXL)

Founded shortly after World War II by a group of engineers from UC Berkley, Hexcel (NYSE: HXL) manufactures lightweight composite materials primarily for the aerospace and defense sectors.

Hexcel reported revenues of $489.9 million, down 2.1% year on year. This print exceeded analysts’ expectations by 3%. Overall, it was a satisfactory quarter for the company.

Chairman, CEO and President Tom Gentile said, “Hexcel delivered sales and adjusted EPS in line with expectations for the second quarter of 2025, based on modest sequential growth in three of our four major commercial aerospace programs, with the exception being softness in the Airbus A350 as expected and previously communicated due to production rate decreases announced by Airbus and destocking of excess inventory in the supply chain. There was continued growth in the Other Commercial Aerospace market, and we were pleased to see Defense, Space and Other providing robust growth yet again with a high single digit step-up over the second quarter of 2024. Overall production levels and reduced capacity utilization, along with actions to reduce inventory meant gross margin remained subdued. The opportunity for significant margin leverage and cash flow generation remains strong, and we are encouraged by the more positive tones and progress conveyed by the commercial airframe and engine OEM’s in recent months.”

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $62.10.

Is now the time to buy Hexcel? 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 an impressive 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 37% since reporting. It currently trades at $8.45.

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 11.7% since the results and currently trades at $39.50.

Read our full analysis of Astronics’s results here.

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 result lagged analysts' expectations by 23.3%. It was a slower quarter as it also recorded a significant miss of analysts’ EBITDA and EPS estimates.

Redwire achieved the highest full-year guidance raise but had the weakest performance against analyst estimates and weakest performance against analyst estimates among its peers. The stock is down 33.6% since reporting and currently trades at $9.10.

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

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 $876.6 million, up 11.7% year on year. This number topped analysts’ expectations by 3%. It was a strong quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates.

The stock is up 2.3% since reporting and currently trades at $521.

Read our full, actionable report on Curtiss-Wright here, it’s free.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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

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