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Solid Demand in Commercial Aerospace Drives Howmet: Can It Sustain?
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Key Takeaways
Howmet's commercial aerospace revenues rose 28% in Q2 2026 and accounted for 53% of its business.
Engine Products revenues jumped 32% to $1.37B on stronger aerospace spares and gas turbine demand.
Howmet's $1.8B CAM acquisition expanded its aerospace fastening portfolio and engineering capabilities.
The strongest driver of Howmet Aerospace Inc.’s (HWM - Free Report) business at the moment is persistent strength in the commercial aerospace market. Revenues from the commercial aerospace market increased 28% year over year in the second quarter of 2026, following an increase of 20% in the first quarter. The market constituted 53% of its business in the second quarter.
This uptick significantly benefited Howmet’s Engine Products segment, which reported revenues of $1.37 billion in the second quarter, reflecting 32% year-over-year growth. The sustained strength was attributed to increasing demand for engine spares across both commercial and defense aerospace markets, and strength in gas turbine markets. Driven by strength across the commercial and defense aerospace markets, second-quarter revenues from HWM’s Fastening Systems segment totaled $589 million, up 37% year over year.
With Boeing’s gradual production recovery, particularly in the 737 MAX narrowbody aircraft, Howmet is poised to maintain robust demand momentum in the quarters ahead. Also, healthy build rates at Airbus for A320 (narrowbody) and A350 (widebody) aircraft hold promise for spare engine demand.
In April 2026, Howmet acquired Stanley Black & Decker, Inc.'s (SWK) Consolidated Aerospace Manufacturing LLC (“CAM”) business for $1.8 billion. The acquisition strengthened HWM’s aerospace fastening solutions portfolio through its established brands, engineering capabilities and deep customer relationships.
HWM’s Peers in the Commercial Aerospace Market
Commercial aircraft demand and aftermarket activity continue to support Textron Inc.’s (TXT - Free Report) Aviation segment over a multiyear horizon. In the second quarter, segment revenues increased 1% year over year to $1.54 billion, while aftermarket revenues rose to $512 million from $507 million. Textron has also been witnessing strong order activity, which resulted in a backlog of about $8 billion (exiting the second quarter) for the Aviation segment.
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 RBC Bearings’ Aerospace/Defense segment. The segment’s revenues were up 36.9% year over year in first-quarter fiscal 2027 (ended June 2026).
HWM's Price Performance, Valuation and Estimates
Image Source: Zacks Investment Research
Shares of Howmet have gained 22.7% in the past year against the industry’s decline of 9.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 38.44X, above the industry’s average of 29.82X.
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
Image: Shutterstock
Solid Demand in Commercial Aerospace Drives Howmet: Can It Sustain?
Key Takeaways
The strongest driver of Howmet Aerospace Inc.’s (HWM - Free Report) business at the moment is persistent strength in the commercial aerospace market. Revenues from the commercial aerospace market increased 28% year over year in the second quarter of 2026, following an increase of 20% in the first quarter. The market constituted 53% of its business in the second quarter.
This uptick significantly benefited Howmet’s Engine Products segment, which reported revenues of $1.37 billion in the second quarter, reflecting 32% year-over-year growth. The sustained strength was attributed to increasing demand for engine spares across both commercial and defense aerospace markets, and strength in gas turbine markets. Driven by strength across the commercial and defense aerospace markets, second-quarter revenues from HWM’s Fastening Systems segment totaled $589 million, up 37% year over year.
With Boeing’s gradual production recovery, particularly in the 737 MAX narrowbody aircraft, Howmet is poised to maintain robust demand momentum in the quarters ahead. Also, healthy build rates at Airbus for A320 (narrowbody) and A350 (widebody) aircraft hold promise for spare engine demand.
In April 2026, Howmet acquired Stanley Black & Decker, Inc.'s (SWK) Consolidated Aerospace Manufacturing LLC (“CAM”) business for $1.8 billion. The acquisition strengthened HWM’s aerospace fastening solutions portfolio through its established brands, engineering capabilities and deep customer relationships.
HWM’s Peers in the Commercial Aerospace Market
Commercial aircraft demand and aftermarket activity continue to support Textron Inc.’s (TXT - Free Report) Aviation segment over a multiyear horizon. In the second quarter, segment revenues increased 1% year over year to $1.54 billion, while aftermarket revenues rose to $512 million from $507 million. Textron has also been witnessing strong order activity, which resulted in a backlog of about $8 billion (exiting the second quarter) for the Aviation segment.
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 RBC Bearings’ Aerospace/Defense segment. The segment’s revenues were up 36.9% year over year in first-quarter fiscal 2027 (ended June 2026).
HWM's Price Performance, Valuation and Estimates
Image Source: Zacks Investment Research
Shares of Howmet have gained 22.7% in the past year against the industry’s decline of 9.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 38.44X, above the industry’s average of 29.82X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s earnings has been on the rise over the past 60 days.
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.