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Strength in Commercial Aerospace Drives Howmet: More Upside to Come?
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Key Takeaways
Howmet's commercial aerospace revenues rose 20% in Q1, surpassing $1.2 billion and making up 53% of sales.
HWM's Engine Products revenues climbed 29% on strong engine spare demand and aircraft backlog.
Howmet could benefit from Boeing production recovery and healthy Airbus build rates supporting demand.
The strongest driver of Howmet Aerospace Inc.’s (HWM - Free Report) business at the moment is strength in the commercial aerospace market. 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.
This uptick significantly benefited Howmet’s Engine Products segment, which reported a 29% year-over-year revenue increase in the first quarter. The sustained strength was attributed to increasing demand for engine spares and a record backlog for new, more fuel-efficient aircraft with reduced carbon emissions. Driven by strength across the commercial and defense aerospace markets, revenues from HWM’s Fastening Systems segment also increased 14% year over year.
Boeing is also anticipated to witness a gradual production recovery, 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 spare engine demand. With commercial aircraft programs expected to continue benefiting from the strength in air travel, the company is poised to maintain robust demand momentum in the quarters ahead.
HWM’s Peers in the Commercial Aerospace Market
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 GE Aerospace’s Commercial Engines & Services business jumped 34% year over year to $8.92 billion in first-quarter 2026. GE Aerospace has also been making investments to expand and upgrade manufacturing facilities in the United States and overseas.
RBC Bearings Incorporated (RBC - Free Report) 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).
HWM's Price Performance, Valuation and Estimates
Shares of Howmet have gained 6.8% in the past three months against the industry’s decline of 4.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 49.42X, above the industry’s average of 32.84X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s earnings has been on the rise over the past 60 days.
View the Zacks #1 Rank List
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Strength in Commercial Aerospace Drives Howmet: More Upside to Come?
Key Takeaways
The strongest driver of Howmet Aerospace Inc.’s (HWM - Free Report) business at the moment is strength in the commercial aerospace market. 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.
This uptick significantly benefited Howmet’s Engine Products segment, which reported a 29% year-over-year revenue increase in the first quarter. The sustained strength was attributed to increasing demand for engine spares and a record backlog for new, more fuel-efficient aircraft with reduced carbon emissions. Driven by strength across the commercial and defense aerospace markets, revenues from HWM’s Fastening Systems segment also increased 14% year over year.
Boeing is also anticipated to witness a gradual production recovery, 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 spare engine demand. With commercial aircraft programs expected to continue benefiting from the strength in air travel, the company is poised to maintain robust demand momentum in the quarters ahead.
HWM’s Peers in the Commercial Aerospace Market
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 GE Aerospace’s Commercial Engines & Services business jumped 34% year over year to $8.92 billion in first-quarter 2026. GE Aerospace has also been making investments to expand and upgrade manufacturing facilities in the United States and overseas.
RBC Bearings Incorporated (RBC - Free Report) 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).
HWM's Price Performance, Valuation and Estimates
Shares of Howmet have gained 6.8% in the past three months against the industry’s decline of 4.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 49.42X, above the industry’s average of 32.84X.
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.