Howmet Aerospace Plunges 6.58% Amid Mixed Sector Outlook

On April 4, 2025, Howmet Aerospace experienced a significant drop of 6.58% in pre-market trading, reflecting a notable shift in investor sentiment towards the aerospace and defense sector.

Howmet Aerospace, a prominent player in the aerospace and defense industry, has been facing a mixed outlook. The company's commercial aerospace market has shown robust growth, with revenues increasing by 20% year over year in 2024. This growth is driven by the increasing demand for wide-body aircraft and the rising need for fuel-efficient aircraft with reduced carbon emissions. However, the commercial transportation market has been a weak spot, with revenues declining by 7% year over year in 2024. This decline is attributed to lower OEM builds and soft demand in the near term.

On the defense side, Howmet has seen positive momentum, with revenues from the defense aerospace market increasing by 15% year over year in 2024. This growth is supported by steady government spending and robust orders for engine spares for the F-35 program and spares and new builds for legacy fighters. Despite these challenges, Howmet's strong fundamentals and growth prospects in the commercial aerospace market continue to be a driving force for the company.