The strongest driver of Howmet Aerospace Inc.’s HWM business at the moment is strength in the commercial aerospace market. Revenues from the commercial aerospace market increased 20% year over year (exceeding $1.2 billion) in the first quarter of 2026, constituting 53% of HWM’s business.
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 increasing demand for engine spares and a record backlog for new, more fuel-efficient aircraft with reduced carbon emissions. Driven by strength across the commercial and defense aerospace markets, revenues from HWM’s Fastening Systems segment also increased 14% year over year.
Boeing is also anticipated to witness a gradual production recovery, particularly in the 737 MAX widebody aircraft, which is likely to boost demand for Howmet’s products in the market. Also, healthy build rates at Airbus for A320 (narrowbody) and A350 (widebody) aircraft hold promise for spare engine demand. With commercial aircraft programs expected to continue benefiting from the strength in air travel, the company is poised to maintain robust 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 GE Aerospace’s Commercial Engines & Services business jumped 34% year over year to $8.92 billion in first-quarter 2026. GE Aerospace has also been making investments to expand and upgrade manufacturing facilities in the United States and overseas.
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 41.2% year over year in fourth-quarter fiscal 2026 (ended March 2026).
HWM's Price Performance, Valuation and Estimates
Shares of Howmet have gained 6.8% in the past three months against the industry’s decline of 4.5%.
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From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 49.42X, above the industry’s average of 32.84X.
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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.
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This article originally published on Zacks Investment Research (zacks.com).