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Strength in Defense Aerospace Market Drives Howmet: Can It Sustain?
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Key Takeaways
Howmet's defense aerospace revenues rose 10.2% in the first half of 2026 and 21% in 2025.
Strong demand for F-35 and legacy fighter jet spares boosted Howmet's Engine Products revenues by 30.4%.
Howmet raised 2026 guidance to $10.00-$10.10B in revenues and $3.21-$3.25B in adjusted EBITDA.
Howmet Aerospace Inc. (HWM - Free Report) is benefiting from solid momentum in its defense aerospace market. In the first six months of 2026, revenues from the defense aerospace market surged 10.2% year over year, constituting 15.5% of the company’s revenues. Also, in 2025, revenues from this market increased 21% year over year. The revenue growth was driven by the healthy demand for engine spares, particularly related to the F-35 program, and increased orders for other legacy fighter jet spares.
This increase provided a substantial boost to Howmet’s Engine Products segment, where revenues climbed 30.4% year over year during the first half of the year. The company is also stepping up its focus on new initiatives, especially in drones and collaborative combat aircraft. As higher funding is expected to support military-aircraft programs, HWM is positioned to sustain healthy demand momentum in the coming quarters.
The fiscal 2026 Defense Appropriations Act, enacted in February 2026, included substantial funding for defense programs. This favorable spending environment could create additional contract opportunities for Howmet, given its focus on the defense market, and support revenue growth.
Supported by solid demand in both the defense and commercial aerospace markets, Howmet raised its 2026 guidance. The company now anticipates revenues of $10.00-$10.10 billion and adjusted EBITDA of $3.21-$3.25 billion.
Segment Snapshot of HWM’s Peers
RTX Corporation (RTX - Free Report) is witnessing solid bookings and backlog levels. RTX’s strong backlog supports a positive outlook for revenue growth in its defense business, which is expected to strengthen profits over the long term. RTX won several notable defense contracts during the first six months of 2026, which resulted in a record backlog of $289 billion that includes $119 billion of defense projects.
GE Aerospace (GE - Free Report) is experiencing persistent strength in its Defense & Propulsion Technologies segment. Revenues from the segment increased 16% year over year to $3.4 billion in second-quarter 2026. The top-line growth was supported by healthy demand for GE Aerospace’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense market.
HWM's Price Performance, Valuation and Estimates
Image Source: Zacks Investment Research
Shares of Howmet have surged 22.9% in the past year against the industry’s decline of 12%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 38.31X, above the industry’s average of 29.32X. Howmet carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s 2026 earnings has increased 6.2% over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Strength in Defense Aerospace Market Drives Howmet: Can It Sustain?
Key Takeaways
Howmet Aerospace Inc. (HWM - Free Report) is benefiting from solid momentum in its defense aerospace market. In the first six months of 2026, revenues from the defense aerospace market surged 10.2% year over year, constituting 15.5% of the company’s revenues. Also, in 2025, revenues from this market increased 21% year over year. The revenue growth was driven by the healthy demand for engine spares, particularly related to the F-35 program, and increased orders for other legacy fighter jet spares.
This increase provided a substantial boost to Howmet’s Engine Products segment, where revenues climbed 30.4% year over year during the first half of the year. The company is also stepping up its focus on new initiatives, especially in drones and collaborative combat aircraft. As higher funding is expected to support military-aircraft programs, HWM is positioned to sustain healthy demand momentum in the coming quarters.
The fiscal 2026 Defense Appropriations Act, enacted in February 2026, included substantial funding for defense programs. This favorable spending environment could create additional contract opportunities for Howmet, given its focus on the defense market, and support revenue growth.
Supported by solid demand in both the defense and commercial aerospace markets, Howmet raised its 2026 guidance. The company now anticipates revenues of $10.00-$10.10 billion and adjusted EBITDA of $3.21-$3.25 billion.
Segment Snapshot of HWM’s Peers
RTX Corporation (RTX - Free Report) is witnessing solid bookings and backlog levels. RTX’s strong backlog supports a positive outlook for revenue growth in its defense business, which is expected to strengthen profits over the long term. RTX won several notable defense contracts during the first six months of 2026, which resulted in a record backlog of $289 billion that includes $119 billion of defense projects.
GE Aerospace (GE - Free Report) is experiencing persistent strength in its Defense & Propulsion Technologies segment. Revenues from the segment increased 16% year over year to $3.4 billion in second-quarter 2026. The top-line growth was supported by healthy demand for GE Aerospace’s propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense market.
HWM's Price Performance, Valuation and Estimates
Image Source: Zacks Investment Research
Shares of Howmet have surged 22.9% in the past year against the industry’s decline of 12%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 38.31X, above the industry’s average of 29.32X. Howmet carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s 2026 earnings has increased 6.2% 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.