Howmet Aerospace Inc. HWM has been benefiting from strong momentum in the commercial aerospace market. Following year-over-year growth of 20% in first-quarter 2026, revenues from the commercial aerospace market increased 28% in the second quarter. The market constituted 53% of its overall business in the reported quarter.
This market strength significantly boosted Howmet’s Engine Products segment in the second quarter, which generated revenues of $1.37 billion, up 32% year over year. The top-line results were driven by robust demand for engine spares across commercial and defense aerospace markets, along with strength in the gas turbine market. Howmet’s Fastening Systems segment recorded revenues of $589 million, marking a 37% year-over-year increase, supported by solid demand in commercial and defense aerospace markets.
Boeing’s gradual production ramp-up, particularly for the 737 MAX narrowbody aircraft, is expected to sustain demand for Howmet in the coming quarters. Meanwhile, steady production rates for Airbus’ A320 narrowbody and A350 widebody aircraft also bode well for engine spare parts demand.
In April 2026, Howmet acquired Stanley Black & Decker, Inc.'s SWK Consolidated Aerospace Manufacturing LLC (“CAM”) business for $1.8 billion. The acquisition, which strengthened HWM’s aerospace fastening solutions portfolio and engineering capabilities, is likely to increase its backlog conversion rate.
HWM’s Peers in the Commercial Aerospace Market
GE Aerospace GE is benefiting from the solid demand for LEAP, GEnx & GE9X engines and services within the Commercial Engines & Services segment. In the second quarter of 2026, GE Aerospace’s engine deliveries within this segment increased 26% year over year, indicating better throughput as it works through customer demand. The Commercial Engines & Services segment’s revenues and orders jumped 27% and 18%, respectively, on a year-over-year basis in the quarter.
RTX Corporation RTX reported 14.5% sales growth in the second quarter of 2026. This growth was driven by solid momentum in the commercial aerospace market, where RTX Corp. witnessed growth in aftermarket and OEM sales. An 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
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Shares of Howmet have gained 9.9% in the year-to-date period against the industry’s decline of 15.2%.
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From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 36.63X, above the industry’s average of 27.53X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s 2026 earnings has been on the rise over the past 60 days.
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Howmet Aerospace Inc. (HWM): Free Stock Analysis Report
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Stanley Black & Decker, Inc. (SWK): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).