Howmet Aerospace Inc. (HWM) has delivered a standout performance in 2026, surging 26.5% year to date and far outpacing broader market benchmarks.
The S&P 500 has gained just 12.2% over the same period, while Howmet’s own industry has actually declined 5.4%, making the company’s run all the more impressive.
Peers GE Aerospace (GE) and RTX Corporation (RTX) returned 9.4% and 9.5% respectively, leaving Howmet well ahead of the competition among major aerospace names.
The stock closed at $259.27 on September 4, sitting below its 52-week high of $310.00 but well above its 52-week low of $176.32.
Commercial aerospace remains the most powerful engine driving Howmet’s growth, with strong demand for both narrow and wide-body aircraft boosting OEM spending significantly.
Revenues from the commercial aerospace market climbed 28% year over year in the second quarter of 2026, following a 20% increase in the first quarter, representing 53% of overall business.
Healthy build rates at Airbus for A320 and A350 aircraft, alongside a production recovery in the Boeing 737 MAX, are supporting robust spare engine demand for Howmet.
Defense aerospace is also contributing meaningfully, with revenues from that segment rising 11% year over year in the second quarter and accounting for 15% of total company business.
The fiscal year 2026 Defense Appropriations Act, signed into law in February 2026, delivered a strong budgetary allocation for defense, creating a favorable backdrop for Howmet’s continued expansion.
Driven by its broad business strength, Howmet raised its full-year 2026 revenue outlook to between $10.00 billion and $10.10 billion, with adjusted earnings projected at $5.23 to $5.31 per share.
In April 2026, Howmet acquired Stanley Black & Decker’s (SWK) Consolidated Aerospace Manufacturing LLC business for $1.8 billion, adding established brands and engineering capabilities to its fastening solutions portfolio.
Shareholder returns have been a consistent priority, with HWM distributing $97 million in dividends during the first half of 2026 and repurchasing $800 million worth of shares through July.
The company also raised its quarterly dividend by 17% to 14 cents per share in July 2026, equivalent to 56 cents on an annual basis.
The Zacks Consensus Estimate for 2026 earnings stands at $5.26 per share, reflecting year-over-year growth of 5.8%, while the 2027 consensus points to $6.22 per share, a 5.1% increase.
Shares faced some pressure after CEO Elon Musk announced that SpaceX intends to begin producing natural gas turbine blades at its Texas facility, introducing a new competitive dynamic in that specialized market.
Howmet’s valuation remains elevated, with the stock trading at a forward 12-month price-to-earnings ratio of 43.79X compared to the industry average of 30.74X and peers GE Aerospace and RTX Corp at 39.02X and 26.44X respectively.
Despite the premium valuation and emerging competition from SpaceX, analysts remain optimistic, with earnings estimate revisions trending higher over the past 60 days.
Strong commercial and defense aerospace fundamentals, disciplined capital allocation, a recent transformative acquisition, and upgraded annual guidance all support a constructive outlook for HWM shares going forward.
