Commercial aerospace remains the dominant growth engine for Howmet Aerospace Inc. (NYSE: HWM), with revenues from that segment surging 28% year over year in the second quarter of 2026.
That segment now accounts for 53% of Howmet’s total revenues, underscoring how central commercial aviation has become to the company’s overall business model.
Rising global air travel has driven demand for wide-body aircraft, prompting original equipment manufacturers to increase spending levels across the board.
Higher aircraft utilization directly benefits Howmet, as airlines require greater volumes of the engineered parts and components the company specializes in producing.
Growing demand for fuel-efficient aircraft with lower carbon emissions, along with engine spares, has added further momentum to the commercial aerospace market’s expansion.
The gradual production recovery of the Boeing 737 MAX aircraft is also expected to generate increased demand for Howmet’s products, providing another tailwind for the company.
Howmet’s defense aerospace segment continues to show healthy momentum, with demand for engine spares tied to the F-35 program and higher overall military spending supporting steady growth.
Among major peers, RTX Corporation (NYSE: RTX) reported 14.5% sales growth in the second quarter of 2026, driven by double-digit gains in commercial aftermarket sales across its Collins Aerospace and Pratt and Whitney segments.
GE Aerospace (NYSE: GE) is benefiting from solid demand for LEAP, GEnx, and GE9X engines, with engine deliveries within its Commercial Engines and Services segment surging 26% in the second quarter compared to the prior-year quarter.
Howmet shares have surged 60% over the past year, vastly outperforming the broader industry’s growth of just 5.5% over the same period.
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 50.49X, well above the industry average of 34.3X, reflecting the premium investors are placing on the company’s growth trajectory.
The Zacks Consensus Estimate for HWM’s earnings has been rising over the past 60 days, and the stock currently holds a Zacks Rank of 1, designated as a Strong Buy.
