As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at aerospace and defense stocks, starting with Byrna (NASDAQ:BYRN).
Emissions and automation are important in aerospace, so companies that boast advances in these areas can take market share. On the defense side, geopolitical tensions–whether it be Russia’s invasion of Ukraine or China’s aggression toward Taiwan–have highlighted the need for consistent or even elevated defense spending. As for challenges, demand for aerospace and defense products can ebb and flow with economic cycles and national defense budgets, which are unpredictable and particularly painful for companies with high fixed costs.
The 33 aerospace and defense stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was 4.3% above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12.9% since the latest earnings results.
Byrna (NASDAQ:BYRN)
Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ:BYRN) is a provider of non-lethal weapons.
Byrna reported revenues of $16.39 million, down 42.5% year on year. This print fell short of analysts’ expectations by 26.3%, but it was still a strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Management Commentary“Our second quarter results did not reflect the level of performance we believe Byrna can deliver,” said Byrna CEO Conn Davis.
Byrna delivered the weakest performance against analyst estimates and slowest revenue growth in the group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 40.9% since reporting and currently trades at $3.51.
We think Byrna is a good business, but is it a buy today? Read our full report here, it’s free.
Best Q2: Huntington Ingalls (NYSE:HII)
Building Nimitz-class aircraft carriers used in active service, Huntington Ingalls (NYSE:HII) develops marine vessels and their mission systems and maintenance services.
Huntington Ingalls reported revenues of $3.42 billion, up 10.9% year on year, outperforming analysts’ expectations by 8.2%. The business had an incredible quarter with a beat of analysts’ EPS estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 4.2% since reporting. It currently trades at $268.60.
Is now the time to buy Huntington Ingalls? Access our full analysis of the earnings results here, it’s free.
Weakest 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 $70.93 million, down 33.9% year on year, falling short of analysts’ expectations by 12.7%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates.
As expected, the stock is down 19.9% since the results and currently trades at $5.05.
Read our full analysis of AerSale’s results here.
Cadre (NYSE:CDRE)
Originally known as Safariland, Cadre (NYSE:CDRE) specializes in manufacturing and distributing safety and survivability equipment for first responders.
Cadre reported revenues of $207.1 million, up 31.8% year on year. This result surpassed analysts’ expectations by 16.3%. It was an incredible quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Cadre scored the biggest analyst estimate beat of the whole group. The stock is down 18.3% since reporting and currently trades at $25.36.
Read our full, actionable report on Cadre here, it’s free.
Kratos (NASDAQ:KTOS)
Established with a commitment to supporting national security, Kratos (NASDAQ:KTOS) is a provider of advanced engineering, technology, and security solutions tailored for critical national security applications.
Kratos reported revenues of $458.8 million, up 30.5% year on year. This number beat analysts’ expectations by 11.6%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ organic revenue estimates and a beat of analysts’ EPS estimates.
Kratos had the weakest guidance update among its peers. The stock is down 16.9% since reporting and currently trades at $43.13.
Read our full, actionable report on Kratos here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.