Howmet Aerospace Inc. HWM is benefiting from strong momentum in its defense aerospace market. After experiencing growth of 21% in 2025, revenues from the defense aerospace market increased 10% year over year in first-quarter 2026. The surge in revenues was driven by the solid 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 Engine Products segment, which reported 29% year-over-year revenue growth in the first quarter. 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 the fiscal year 2026 Defense Appropriations Act was signed into law in February 2026, 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 first quarter of 2026, organic sales from Honeywell’s defense and space business increased 4% on a year-over-year basis. The increase in Honeywell’s revenues was fueled by stable U.S. and international defense spending volumes and sustained demand from the current geopolitical climate.
GE Aerospace GE is benefiting from solid momentum in its Defense & Propulsion Technologies segment. In first-quarter 2026, GE Aerospace clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet. Driven by strong bookings, revenues from the Defense & Propulsion Technologies segment increased 19% year over year and orders grew 67% in the first quarter.
HWM's Price Performance, Valuation and Estimates
Shares of Howmet have surged 21.3% in the year-to-date period against the industry’s decline of 3.4%.
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From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 46.31X, above the industry’s average of 32.07X. Howmet carries a Value Score of D.
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The Zacks Consensus Estimate for HWM’s 2026 earnings has increased 9% over the past 60 days.
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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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This article originally published on Zacks Investment Research (zacks.com).