The strongest driver of Howmet Aerospace Inc.’s HWM business at the moment is the persistent strength in its commercial aerospace market. In the first quarter of 2026, the company’s revenues from the commercial aerospace market increased 20% year over year (exceeding $1.2 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 29% year-over-year revenue increase in the first quarter. The sustained strength was attributed to solid momentum in the commercial aerospace, defense aerospace and gas turbine markets. Driven by strength across the commercial and defense aerospace markets, revenues from the Fastening Systems segment also increased 14% year over year.
Boeing is witnessing a gradual production increase, particularly in the 737 MAX widebody aircraft, which is boosting 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. With commercial aircraft programs expected to continue benefiting from the strength in air travel, HWM is poised to maintain strong demand momentum in the quarters ahead.
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 business. Revenues from the company’s Commercial Engines & Services business jumped 34% year over year to $8.92 billion in first-quarter 2026. In first-quarter 2026, the company received orders for more than 650 commercial engines, including commitments from American Airlines, United Airlines and Delta Airlines.
Improving commercial air passenger traffic has been benefiting Textron Inc.’s TXT Aviation business unit. Strong fleet utilization, backed by improving commercial air travel, contributed to Textron Aviation unit’s revenue growth of 22% in the first quarter. Thanks to growing air travel, Textron has also been witnessing strong order activity, which resulted in a backlog of $8 billion (exiting first quarter) for the Aviation segment.
HWM's Price Performance, Valuation and Estimates
Shares of Howmet have gained 9.2% in the past three months against the industry’s decline of 11.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 55.36X, above the industry’s average of 32.24X.
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.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
GE Aerospace (GE): Free Stock Analysis Report
Textron Inc. (TXT): Free Stock Analysis Report
Howmet Aerospace Inc. (HWM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).