The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Howmet (NYSE:HWM) and the rest of the aerospace stocks fared in Q4.
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 satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was in line.
While some aerospace stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.5% since the latest earnings results.
Howmet (NYSE:HWM)
Inventing the first forged aluminum truck wheel, Howmet (NYSE:HWM) specializes in lightweight metals engineering and manufacturing multi-material components used in vehicles.
Howmet reported revenues of $1.89 billion, up 9.2% year on year. This print exceeded analysts’ expectations by 0.7%. Despite the top-line beat, it was still a mixed quarter for the company with EBITDA guidance for next quarter beating analysts’ expectations.
Howmet Aerospace Executive Chairman and Chief Executive Officer John Plant said, “Howmet drove a healthy set of results to close out the year, exceeding the high end of guidance. Revenue in the fourth quarter 2024 grew 9% year over year to a record $1.9 billion, with commercial aerospace growth of 13% supported by engine spares volumes. Adjusted EBITDA* grew 27% to $507 million and Adjusted EBITDA Margin* increased approximately 380 basis points to 26.8%, also records. Adjusted Earnings per Share* grew 40% to a record $0.74.”
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $127.60.
Is now the time to buy Howmet? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $1.03 billion, up 14.9% year on year, outperforming analysts’ expectations by 5.4%. The business had an incredible quarter with an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 10.3% since reporting. It currently trades at $251.31.
Is now the time to buy HEICO? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Boeing (NYSE:BA)
One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE:BA) develops, manufactures, and services commercial airplanes, defense products, and space systems.
Boeing reported revenues of $15.24 billion, down 30.8% year on year, falling short of analysts’ expectations by 6.4%. It was a disappointing quarter as it posted a significant miss of analysts’ adjusted operating income estimates.
Boeing delivered the slowest revenue growth in the group. As expected, the stock is down 9.9% since the results and currently trades at $157.82.
Read our full analysis of Boeing’s results here.
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 $94.74 million, flat year on year. This number topped analysts’ expectations by 3.4%. It was an exceptional quarter as it also put up an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
The stock is up 16.2% since reporting and currently trades at $8.23.
Read our full, actionable report on AerSale 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 $824.3 million, up 4.9% year on year. This result surpassed analysts’ expectations by 5.9%. Overall, it was a very strong quarter as it also logged full-year EPS guidance exceeding analysts’ expectations.
The stock is down 8.3% since reporting and currently trades at $312.98.
Read our full, actionable report on Curtiss-Wright here, it’s free.
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