Howmet Gains From Strength in Commercial Aerospace: Will the Momentum Last?

Howmet Aerospace Inc.’s HWM commercial aerospace market is playing a significant role in driving its overall growth. In the fourth quarter of 2025, the company’s revenues from the commercial aerospace market increased 13% year over year, which accounted for 53% of its quarterly sales. Pickup in air travel has been positive for the company as the increased usage of aircraft has driven spending on parts and products that it provides.

This uptick significantly benefited Howmet’s Engine Products segment, which reported a 19.7% year-over-year revenue increase in the fourth quarter, supported by strong growth in commercial aerospace sales. The sustained strength was attributed to new, more fuel-efficient aircraft with reduced carbon emissions and increased spare demand for engines. With commercial aircraft programs expected to continue benefiting from the strength in air travel, HWM is poised to maintain strong demand momentum in the quarters ahead.

While the commercial aerospace market has remained the major driver for the company, the defense side of the industry is also showing positive momentum, cushioned by steady government support. Increased demand for engine spares, especially for legacy fighters like the F-35, F-15 and F-16 and rising military budgets, is fueling strong growth in this market.

HWM’s Peers in the Commercial Aerospace Market

Among its major peers, RTX Corporation RTX reported 12.1% sales growth in the fourth quarter of 2025. This growth was primarily driven by solid momentum in the commercial aerospace market, where RTX Corp. witnessed growth in aftermarket and OEM sales. Increase 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 the solid demand for LEAP, GEnx & GE9X engines and services within the Commercial Engines & Services business. Revenues from the company’s Commercial Engines & Services business jumped 24% year over year to $9.47 billion in fourth-quarter 2025. This growth is supported by increasing air traffic, fleet renewal and expansion activities. During 2025, the company secured more than 500 engine wins at the Dubai Airshow, including deals from flydubai for GEnx engines and Riyadh Air for LEAP-1A engines.

HWM's Price Performance, Valuation and Estimates

Shares of Howmet have surged 102.7% in the past year compared with the industry’s growth of 38.9%.

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From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 53.53X, above the industry’s average of 33.93X.

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

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