As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the aerospace industry, 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 mixed Q3. As a group, revenues missed analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 0.7% below.

Luckily, aerospace stocks have performed well with share prices up 10.3% on average 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 $456.2 million, flat year on year. This print exceeded analysts’ expectations by 3%. Despite the top-line beat, it was still a slower quarter for the company with full-year EPS guidance missing analysts’ expectations.

Chairman, CEO and President Tom Gentile said, “Hexcel’s third quarter sales and adjusted EPS were in line with expectations as we experienced seasonally slower third quarter sales combined with the expected commercial aerospace destocking, particularly with the Airbus A350. As we consider tariffs, inflation and the fourth quarter 2025 impact of some lingering destocking, we expect to be at the bottom end of our 2025 sales guidance and we have reduced our EPS guidance. Looking forward to 2026, we are seeing strong orders from the commercial aerospace OEMs to support the production rate increases they are forecasting for their key programs. With the supply chain stabilizing, we are increasingly confident in the outlook for commercial aerospace original equipment build rates. Once Airbus and Boeing hit their publicly announced peak build rates, Hexcel expects to benefit with an additional $500 million in incremental annual revenue from existing contracts. These increasing sales in 2026 and beyond will drive higher capacity utilization, unlocking the volume leverage that will fuel future margin expansion. With the incremental revenue Hexcel is expected to generate more than $1 billion in free cash flow over the next four years.”

Interestingly, the stock is up 19.9% since reporting and currently trades at $76.40.

Read our full report on Hexcel here, it’s free for active Edge members.

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 $739.6 million, up 11.8% year on year, outperforming analysts’ expectations by 7.4%. The business had an exceptional quarter with a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ revenue estimates.

AAR pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 8% since reporting. It currently trades at $86.05.

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

Weakest Q3: 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 $103.4 million, up 50.7% year on year, falling short of analysts’ expectations by 22.4%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and a significant miss of analysts’ revenue estimates.

Interestingly, the stock is up 7.1% since the results and currently trades at $7.92.

Read our full analysis of Redwire’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 print met analysts’ expectations. It was a strong quarter as it also produced a solid beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

The stock is up 15.6% since reporting and currently trades at $55.50.

Read our full, actionable report on Astronics here, it’s free for active Edge members.

HEICO (NYSE: HEI)

Founded in 1957, HEICO (NYSE: HEI) manufactures and services aerospace and electronic components for commercial aviation, defense, space, and other industries.

HEICO reported revenues of $1.21 billion, up 19.3% year on year. This result topped analysts’ expectations by 3.2%. Overall, it was an exceptional quarter as it also logged an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ organic revenue estimates.

The stock is up 9.1% since reporting and currently trades at $338.05.

Read our full, actionable report on HEICO here, it’s free for active Edge members.

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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