Can Howmet Sustain Growth as Commercial Aerospace Demand Surges?

The strongest driver of Howmet Aerospace Inc.’s HWM business at the moment is the commercial aerospace market. The strength in air travel continues with wide-body aircraft demand also picking up, supporting continued OEM (original equipment manufacturer) spending. Pickup in air travel is generally positive for the company as the increased usage of aircraft spurs spending on parts and products that it provides.

Howmet witnessed 15% growth in revenues (exceeding $1.1 billion) on a year-over-year basis from the commercial aerospace market in third-quarter 2025. Also, in the first and second quarter, revenues from this market increased 9% and 8% year over year, respectively.

The sustained strength was driven by solid demand for engine spares and a record backlog for new, more fuel-efficient aircraft with reduced carbon emissions. 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. HWM is poised to maintain solid demand momentum in the quarters ahead as commercial aircraft programs are likely to continue benefiting from the robust air travel activities.

HWM’s Peers in the Commercial Aerospace Market

Among its major peers, Honeywell International Inc. HON is experiencing strength in its commercial aviation aftermarket business, driven by solid demand in the air transport market and supply-chain improvements. After witnessing an increase of 15% and 7% in the first and second quarter of 2025, respectively, organic sales from its commercial aviation aftermarket increased 19% year over year in the third quarter. Also, recovery in the commercial aviation OEM business, due to improved production and reduced customer destocking, bodes well.

RBC Bearings Incorporated RBC is benefiting 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 (revenues up 38.8% year over year in second-quarter fiscal 2026).

HWM's Price Performance, Valuation and Estimates

Shares of Howmet have surged 90.3% in the year-to-date period compared with the industry’s growth of 32.6%.

From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 46.29X, above the industry’s average of 29.82X. Howmet carries a Value Score of D.

The Zacks Consensus Estimate for HWM’s 2025 earnings has increased 2.8% over the past 60 days.

The company currently carries a Zacks Rank #3 (Hold). 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).

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