Howmet Aerospace Inc. HWM continues to benefit from robust demand in the commercial aerospace market. In the third quarter of 2026, revenues from the commercial aerospace market surged 31.6% year over year to $1.46 billion, accounting for approximately 54% of total revenues. In the first nine months of 2026, commercial aerospace revenues increased 26.6% year over year to $4.03 billion.
Increasing demand for commercial aircraft and higher aircraft production rates have been beneficial for Howmet Aerospace. Rising aircraft production supports demand for the company's engineered components, including engine parts, fastening systems and structural products. The expanding aircraft fleet and increasing engine utilization also support aftermarket demand for engine spares. These factors have contributed to higher sales volumes across Howmet Aerospace's aerospace businesses.
Rising demand for fuel-efficient aircraft and engine spares continues to support the commercial aerospace market. The Engine Products segment's revenues increased 33% year over year in the third quarter of 2026, driven by commercial aerospace demand, gas turbine sales and engine spares growth. The company expects commercial aerospace demand and engine spares sales to increase in 2026 compared with 2025. Continued investments in capacity expansion are expected to support higher production requirements and future revenue growth.
Also, HWM's defense aerospace market continues to show favorable momentum. Revenues from the defense aerospace market increased 9.5% year over year to $391 million in the third quarter of 2026. In the first nine months of 2026, defense aerospace revenues increased approximately 10% to $1.15 billion. Increasing demand for aerospace components and engine spares continues to support this business. The company expects defense aerospace demand to increase in 2026 compared with 2025.
HWM’s Peers in the Commercial Aerospace Market
Among its major peers, GE Aerospace GE is benefiting from a growing installed base and higher utilization of engine platforms, driven by sustained demand across commercial & defense sectors. Demand for LEAP, GEnx & GE9X engines and services, supported by growth in air traffic, fleet renewal and expansion activities, is proving beneficial for the Commercial Engines & Services segment. In the first nine months of 2026, the company secured several major engine orders and service agreements. GE Aerospace secured GEnx engine orders from United Airlines and Delta Air Lines for their Boeing 787 Dreamliners, while it secured LEAP engine orders from American Airlines and Copa Airlines for their narrowbody fleets.
Another peer, RTX Corporation RTX, is gaining from a steady recovery in commercial aerospace, strong defense orders and a robust backlog. Strategic investments in manufacturing, defense contracts and next-generation engine development are supporting growth across its aerospace and defense businesses. In the third quarter of 2026, the company’s organic sales advanced 12% year over year, fueled by double-digit gains in all three segments.
HWM's Price Performance, Valuation and Estimates
Shares of Howmet Aerospace have gained 3.8% in the past year against the industry’s decline of 15.3%.
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From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 33.87X, above the industry’s average of 29.42X. Howmet Aerospace carries a Value Score of D.
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The Zacks Consensus Estimate for HWM’s earnings has been on the rise over the past 60 days.
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Howmet Aerospace 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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This article originally published on Zacks Investment Research (zacks.com).