Howmet Rides on Commercial Aerospace Strength: Will the Uptrend Continue?

Howmet Aerospace Inc. HWM continues to gain momentum, with commercial aerospace remaining its strongest growth engine. In the second quarter of 2026, revenues from the commercial aerospace market surged 28% year over year, accounting for 53% of total revenues. 

An increase in air travel has led to rising demand for wide-body aircraft and encouraged original equipment manufacturers (OEMs) to increase their spending levels. This uptick in air traffic has been positive for Howmet, as increased aircraft usage leads to higher demand for engineered parts and products it produces. It also encourages airlines to invest more in new aircraft, further boosting HWM’s sales volume.

Rising demand for fuel-efficient aircraft with lower carbon emissions and engine spares has contributed to the growth of the commercial aerospace market as well.  Also, with the gradual production recovery of the Boeing 737 MAX aircraft, Howmet is expected to witness increased demand for its products in the market.

Also, HWM’s defense aerospace market continues to show healthy momentum. Rising demand for engine spares, particularly for the F-35 program, along with higher military spending, is supporting steady growth and providing an additional avenue for Howmet’s aerospace business.

HWM’s Peers in Commercial Aerospace Market

Among its major peers, RTX Corporation RTX reported 14.5% sales growth in the second quarter of 2026. This growth was largely driven by strength in the commercial aerospace market, where RTX Corp. saw double-digit gains in commercial aftermarket sales. The improvement in commercial aerospace sales boosted RTX’s Collins Aerospace and Pratt & Whitney segments. Rising aircraft utilization and demand for sustainable technologies are supporting RTX Corp.’s growth.

GE Aerospace GE is benefiting from solid demand for LEAP, GEnx & GE9X engines and services within the Commercial Engines & Services segment. This growth is supported by increasing air traffic, fleet renewal and expansion activities. During the first half of 2026, GE Aerospace secured several major engine orders and service agreements. GE Aerospace’s engine deliveries within this segment surged 26% in the second quarter from the prior-year quarter.

HWM's Price Performance, Valuation and Estimates

Shares of Howmet have surged 60% in the past year compared with the industry’s growth of 5.5%.

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From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 50.49X, above the industry’s average of 34.3X.

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The Zacks Consensus Estimate for HWM’s earnings has been on the rise over the past 60 days.

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The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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