HWM Gains From Strength in Commercial Aerospace: Can the Momentum Last?
Howmet Aerospace Inc.HWM has been benefiting from persistent strength in the commercial aerospace market. Strong air travel activities have been a major tailwind for the company, as the increased usage of aircraft is driving spending on parts and products that it provides.
Revenues from the commercial aerospace market increased 20% year over year (exceeding $1.2 billion) in the first quarter of 2026, constituting 53% of HWM’s business. Also, revenues from the market increased 12% year over year in 2025.
The sustained strength was attributed to healthy demand for engine spares and a record backlog for new, more fuel-efficient aircraft with reduced carbon emissions. Boeing is also witnessing a gradual production increase, particularly in the 737 MAX widebody aircraft, which is likely to boost demand for Howmet’s products in the market. Also, healthy build rates at Airbus for A320 (narrowbody) and A350 (widebody) aircraft hold promise for its spare engine demand.
HWM is expected to maintain strong business momentum going forward, supported by a solid pipeline of commercial aircraft programs and strength in global air travel. Driven by strength across its businesses, HWM raised its 2026 outlook and currently expects total revenues of $9.575-$9.725 billion and adjusted EBITDA of $3.025-$3.095 billion.
HWM’s Peers in the Commercial Aerospace Market
RBC Bearings IncorporatedRBC is gaining from the strong performance of the Aerospace/Defense segment. Strength in the commercial aerospace market, driven by strong growth in orders from the OEM and the aftermarket verticals, is driving the Aerospace/Defense segment. The segment’s revenues were up 41.2% year over year in fourth-quarter fiscal 2026 (ended March 2026).
Parker-Hannifin Corp.’s PH Aerospace Systems segment is experiencing strength in the commercial and military markets across both the OEM and aftermarket channels. Revenues from Parker-Hannifin’s Aerospace Systems segment jumped 15.5% year over year in the third quarter of fiscal 2026 (ended March 2026). Parker-Hannifin’s Aerospace Systems segment is poised to gain from strong demand for its products and aftermarket support services in the general aviation market.
HWM's Price Performance, Valuation and Estimates
Shares of Howmet have gained 17.1% in the past three months against the industry’s decline of 0.2%.
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From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 51.74X, above the industry’s average of 33.01X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s earnings has been on the rise over the past 60 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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