Howmet Benefits From Robust Commercial Aerospace Sector: Can the Growth Continue?

Howmet Aerospace Inc.: Growth Driven by Commercial Aerospace

Howmet Aerospace Inc. (HWM) continues to see robust expansion, largely fueled by its commercial aerospace division. In the fourth quarter of 2025, revenue from this segment climbed 13% compared to the previous year, making up over half of the company's total sales for the quarter. The resurgence in air travel has been a key factor, as greater aircraft usage has led to increased demand for Howmet's components and products.

This positive trend has notably boosted the Engine Products division, which saw a 19.7% year-over-year revenue jump in the same period, thanks to strong commercial aerospace sales. The ongoing demand is supported by the introduction of newer, more fuel-efficient aircraft with lower emissions and a rise in engine spare part needs. With air travel expected to remain strong, HWM is well-positioned to sustain its growth momentum in the coming quarters.

While commercial aerospace remains the primary growth engine, the defense sector is also contributing positively, backed by consistent government investment. Increased requirements for engine spares, particularly for established fighter jets like the F-35, F-15, and F-16, along with higher military spending, are driving further expansion in this area.

Performance of Key Competitors in Commercial Aerospace

Among Howmet's main competitors, RTX Corporation (RTX) posted a 12.1% increase in sales during the fourth quarter of 2025, primarily due to strong commercial aerospace activity. Growth in aftermarket and original equipment manufacturer (OEM) sales propelled RTX’s Collins Aerospace and Pratt & Whitney divisions. Higher aircraft utilization rates and a focus on sustainable technologies are also supporting RTX’s upward trajectory.

GE Aerospace (GE) is experiencing heightened demand for its LEAP, GEnx, and GE9X engines and related services. The company’s Commercial Engines & Services segment saw revenues rise 24% year-over-year to $9.47 billion in the fourth quarter of 2025. This growth is attributed to increased air travel, fleet upgrades, and expansion. In 2025, GE secured over 500 engine orders at the Dubai Airshow, including significant deals with flydubai and Riyadh Air.

Howmet’s Stock Performance, Valuation, and Analyst Outlook

Howmet’s share price has soared 102.7% over the past year, significantly outpacing the industry average growth of 38.9%.

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In terms of valuation, HWM is currently trading at a forward price-to-earnings ratio of 53.53, which is higher than the industry average of 33.93.

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Analyst estimates for HWM’s earnings have been trending upward over the past two months.

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Currently, the company holds a Zacks Rank #2 (Buy).

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