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Howmet Aerospace Outpaces Aerospace & Defense Peers in 2026
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Howmet Aerospace Inc. (HWM - Free Report) has emerged as one of the standout performers within the aerospace and industrial manufacturing space on Wall Street in 2026, significantly outperforming many peers in the broader industrials sector. While several manufacturing and defense-related companies have faced volatility from slowing global growth, tariff uncertainty and shifting investor sentiment, Howmet has continued to benefit from robust aerospace demand and strong execution across its Precision Metal Components and Engineered Solutions businesses.
The company, which supplies mission-critical components for aircraft engines, gas turbines and heavy trucks, has seen its stock surge sharply this year as investors rewarded its consistent earnings growth and expanding margins. Howmet’s shares have climbed more than 100% over the past year, substantially outpacing broader industrial benchmarks and several aerospace peers. Strong demand from commercial aviation has remained a major driver, particularly as Boeing and Airbus continue ramping up aircraft production to meet global travel demand.
Earnings Growth and Margin Expansion Impress Investors
HWM reported first-quarter 2026 adjusted earnings of $1.22 per share, reflecting a 41.9% increase from the prior-year quarter. The figure also exceeded the Zacks Consensus Estimate of $1.11 per share. The company generated revenues of $2.31 billion during the quarter, marking a 19.1% year-over-year rise and topping the consensus estimate of $2.24 billion. The strong performance was driven by healthy demand across major end markets, particularly commercial aerospace and gas turbines.
Unlike many industrial manufacturers exposed to weaker cyclical markets, Howmet has benefited from its concentration in high-value aerospace systems and turbine technologies. Its Engine Products and Fastening Systems segments have delivered particularly strong growth, supported by demand for fuel-efficient aircraft and aftermarket engine components. Investors have also responded positively to the company’s improving profitability, share buybacks and raised 2026 guidance.
Turbine Exposure Strengthens Long-Term Growth Story
Another factor supporting the stock has been the company’s exposure to structural growth themes, such as energy infrastructure and gas turbines. Market discussions increasingly highlight Howmet’s strong competitive position in turbine blade manufacturing, an industry with high barriers to entry and rising global demand.
As of May 19, HWM, which carries a Zacks Rank #2 (Buy), remains the only stock from the Zacks Aerospace - Defense industry that is not ranked #3 (Hold) or worse. Huntington Ingalls Industries, Inc. (HII - Free Report) and Embraer S.A. (EMBJ - Free Report) , two of its peers from the same industry, carry a #3 rank. HWM stock has soared 25.3% year to date against declines of 12.4% and 3.2% for Embraer and Huntington Ingalls, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bottom Line
While the stock has experienced occasional pullbacks alongside the broader aerospace sector, Howmet continues to emerge as one of the stronger names in industrial manufacturing due to its pricing power, diversified aerospace exposure and strong cash-flow generation.
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Howmet Aerospace Outpaces Aerospace & Defense Peers in 2026
Howmet Aerospace Inc. (HWM - Free Report) has emerged as one of the standout performers within the aerospace and industrial manufacturing space on Wall Street in 2026, significantly outperforming many peers in the broader industrials sector. While several manufacturing and defense-related companies have faced volatility from slowing global growth, tariff uncertainty and shifting investor sentiment, Howmet has continued to benefit from robust aerospace demand and strong execution across its Precision Metal Components and Engineered Solutions businesses.
The company, which supplies mission-critical components for aircraft engines, gas turbines and heavy trucks, has seen its stock surge sharply this year as investors rewarded its consistent earnings growth and expanding margins. Howmet’s shares have climbed more than 100% over the past year, substantially outpacing broader industrial benchmarks and several aerospace peers. Strong demand from commercial aviation has remained a major driver, particularly as Boeing and Airbus continue ramping up aircraft production to meet global travel demand.
Earnings Growth and Margin Expansion Impress Investors
HWM reported first-quarter 2026 adjusted earnings of $1.22 per share, reflecting a 41.9% increase from the prior-year quarter. The figure also exceeded the Zacks Consensus Estimate of $1.11 per share. The company generated revenues of $2.31 billion during the quarter, marking a 19.1% year-over-year rise and topping the consensus estimate of $2.24 billion. The strong performance was driven by healthy demand across major end markets, particularly commercial aerospace and gas turbines.
Unlike many industrial manufacturers exposed to weaker cyclical markets, Howmet has benefited from its concentration in high-value aerospace systems and turbine technologies. Its Engine Products and Fastening Systems segments have delivered particularly strong growth, supported by demand for fuel-efficient aircraft and aftermarket engine components. Investors have also responded positively to the company’s improving profitability, share buybacks and raised 2026 guidance.
Turbine Exposure Strengthens Long-Term Growth Story
Another factor supporting the stock has been the company’s exposure to structural growth themes, such as energy infrastructure and gas turbines. Market discussions increasingly highlight Howmet’s strong competitive position in turbine blade manufacturing, an industry with high barriers to entry and rising global demand.
As of May 19, HWM, which carries a Zacks Rank #2 (Buy), remains the only stock from the Zacks Aerospace - Defense industry that is not ranked #3 (Hold) or worse. Huntington Ingalls Industries, Inc. (HII - Free Report) and Embraer S.A. (EMBJ - Free Report) , two of its peers from the same industry, carry a #3 rank. HWM stock has soared 25.3% year to date against declines of 12.4% and 3.2% for Embraer and Huntington Ingalls, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bottom Line
While the stock has experienced occasional pullbacks alongside the broader aerospace sector, Howmet continues to emerge as one of the stronger names in industrial manufacturing due to its pricing power, diversified aerospace exposure and strong cash-flow generation.