We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Defense demand grows with engine spares for F-35, F-15, F-16 and higher budgets.
Howmet Aerospace Inc. (HWM - Free Report) is benefiting from strong demand in the commercial aerospace market, which has become an important growth pillar for it. In the fourth quarter of 2025, HWM’s revenues from the commercial aerospace market surged 13% year over year. This accounted for 53% of Howmet’s 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. The results were aided 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, Howmet 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. Aided by increased demand for engine spares, especially for legacy fighters like the F-35, F-15 and F-16 and rising military budgets, this market is expected to see more gains in the quarters ahead.
HWM’s Peers in the Commercial Aerospace Market
Among its major peers, GE Aerospace (GE - Free Report) 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.
Its another peer, RTX Corporation (RTX - Free Report) 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.
HWM's Price Performance, Valuation and Estimates
Shares of Howmet have surged 106.4% in the past year compared with the industry’s growth of 35.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 49.17X, above the industry’s average of 31.06X. Howmet carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s 2026 earnings has increased 2.9% over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Will Strength in Commercial Aerospace Drive Howmet's Growth?
Key Takeaways
Howmet Aerospace Inc. (HWM - Free Report) is benefiting from strong demand in the commercial aerospace market, which has become an important growth pillar for it. In the fourth quarter of 2025, HWM’s revenues from the commercial aerospace market surged 13% year over year. This accounted for 53% of Howmet’s 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. The results were aided 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, Howmet 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. Aided by increased demand for engine spares, especially for legacy fighters like the F-35, F-15 and F-16 and rising military budgets, this market is expected to see more gains in the quarters ahead.
HWM’s Peers in the Commercial Aerospace Market
Among its major peers, GE Aerospace (GE - Free Report) 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.
Its another peer, RTX Corporation (RTX - Free Report) 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.
HWM's Price Performance, Valuation and Estimates
Shares of Howmet have surged 106.4% in the past year compared with the industry’s growth of 35.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 49.17X, above the industry’s average of 31.06X. Howmet carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s 2026 earnings has increased 2.9% over the past 60 days.
Image Source: Zacks Investment Research
Howmet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.