Howmet Aerospace Inc. HWM is witnessing persistent strength in its defense aerospace market. In first-quarter 2026, revenues from the defense aerospace market surged 10% year over year, constituting 16% of the company’s revenues. Also, in 2025, revenues from this market increased 21% year over year. The surge in revenues was driven by the strong demand for engine spares, particularly related to the F-35 program, and increased orders for legacy fighter jet spares.
This uptick significantly benefited Howmet’s Engine Products segment, which reported a 29% year-over-year revenue increase in the first quarter. The company is expanding its efforts on new programs, particularly in the drone and collaborative combat aircraft space. With military-aircraft programs expected to benefit from increased funding, HWM is poised to maintain strong demand momentum in the upcoming quarters.
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 budgetary provisions set the stage for Howmet, which is focused on the defense business, to win more contracts, which is likely to boost its top line.
Driven by strength across both defense and commercial aerospace markets, the company raised its 2026 outlook and currently expects total revenues of $9.575-$9.725 billion and adjusted EBITDA of $3.025-$3.095 billion.
Segment Snapshot of HWM’s Peers
Textron Inc.’s TXT defense business is gaining momentum, backed by key U.S. military contracts and steady government support. In first-quarter 2026, Bell’s military revenues increased year over year, driven by continued growth on the MV-75 Cheyenne program. Textron Systems revenues increased 13% largely due to higher volume on the Ship-to-Shore Connector program and military training services at ATAC.
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 32.3% in the past six months against the industry’s decline of 1.7%.
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 50.86X, above the industry’s average of 34.03X. Howmet carries a Value Score of D.
The Zacks Consensus Estimate for HWM’s 2026 earnings has increased 9% over the past 60 days.
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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