Howmet Aerospace Inc.’s HWM commercial aerospace market is playing a significant role in driving its overall growth. In the fourth quarter of 2025, the company’s revenues from the commercial aerospace market increased 13% year over year (exceeding $1.1 billion), which accounted for 53% of its quarterly sales. Strong air travel activities have been positive for the company, as the increased usage of aircraft has driven spending on parts and products that it provides.
This uptick significantly benefited Howmet’s Engine Products segment, which reported a 20% year-over-year revenue increase in the fourth 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. Boeing is witnessing a gradual production recovery, particularly in the 737 MAX widebody aircraft, which is likely to boost demand for Howmet’s products in the market. Healthy build rates at Airbus for A320 (narrowbody) and A350 (widebody) aircraft also hold promise for HWM’s spare engine demand.
The defense side of the industry is also showing strong momentum, cushioned by steady government support. Robust demand for engine spares, related to the F-35 program and an increase in orders for legacy fighter jet spares, is fueling strong growth in this market.
Segment Snapshot of HWM’s Peers
RBC Bearings Incorporated RBC 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 41.5% year over year in third-quarter fiscal 2026 (ended December 2025).
Parker-Hannifin Corp.’s PH Aerospace Systems segment is experiencing strength in the commercial and military markets across both the OEM and aftermarket channels. Revenues from Parker-Hannifin’s Aerospace Systems segment jumped 14.5% year over year in the second quarter of fiscal 2026 (ended December 2025). Parker-Hannifin’s Aerospace Systems segment is poised to gain from strong demand for its products and aftermarket support services in the general aviation market.
HWM's Price Performance, Valuation and Estimates
Shares of Howmet have surged 106.1% in the past year compared with the industry’s growth of 30.8%.
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From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 52.61X, above the industry’s average of 32.66X. Howmet carries a Value Score of F.
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The Zacks Consensus Estimate for HWM’s 2026 earnings has increased 2.5% 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.
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Parker-Hannifin Corporation (PH): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).