Howmet Aerospace Inc. HWM is benefiting from persistent strength in its defense aerospace market. After experiencing growth of 19%, 21% and 24% in the first, second and third quarters, respectively, revenues from the defense aerospace market surged 20% year over year in fourth-quarter 2025. The surge in revenues was driven by the robust demand for engine spares, particularly related to the F-35 program and an increase in orders for legacy fighter jet spares.
This solid momentum is significantly benefiting Howmet’s Engineered Structures segment, which reported 8% year-over-year revenue growth in full-year 2025. With a solid pipeline of military-aircraft programs and a robust defense budget, HWM is poised to maintain strong demand momentum in the quarters ahead.
It's worth noting that in July 2025, the House of Representatives passed the fiscal year 2026 Defense Appropriations Act, providing a strong budgetary allocation for defense. Such robust provisions set the stage for Howmet, which remains focused on its defense business.
The robust military funding enhances Howmet’s ability to secure new contracts. Backed by favorable geopolitical developments and consistent government support, the company’s defense aerospace market is well-placed for growth in the quarters ahead.
Segment Snapshot of HWM’s Peers
Honeywell International Inc. HON is benefiting from strong momentum in its defense and space business. In the fourth quarter of 2025, organic sales from Honeywell’s defense and space business surged 10% on a year-over-year basis. The surge in Honeywell’s revenues was fueled by stable U.S. and international defense spending volumes and sustained demand from the current geopolitical climate.
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 gained 14.2% in the past three months against the industry’s decline of 5%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 53.09X, above the industry’s average of 32.19X. Howmet carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s 2026 earnings has increased 3.2% 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.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
SeeWant 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
Honeywell International Inc. (HON): Free Stock Analysis Report
Parker-Hannifin Corporation (PH): Free Stock Analysis Report
Howmet Aerospace Inc. (HWM): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).