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Strength in Commercial Aerospace Drives Howmet: Will the Momentum Last?
Howmet AerospaceHowmet Aerospace(US:HWM) ZACKSยท2025-08-13 17:56

Core Insights - Howmet Aerospace Inc. (HWM) is experiencing significant growth driven by the commercial aerospace market, with a year-over-year revenue increase of 8% in Q2 2025, accounting for 52% of total sales [1][7] - The Engine Products segment reported a 13.2% year-over-year revenue increase, supported by strong commercial aerospace sales and demand for fuel-efficient aircraft [2][7] - The defense sector is also showing positive momentum, driven by increased demand for engine spares, particularly for the F-35 program, and rising military budgets [3][7] Industry Comparisons - RTX Corporation (RTX) reported an 11% sales growth in Q2 2025, largely due to strength in the commercial aerospace market, benefiting its Collins Aerospace and Pratt & Whitney segments [4] - GE Aerospace saw a 30% year-over-year revenue increase in its Commercial Engines & Services business, reaching $7.99 billion, supported by increasing air traffic and fleet renewal activities [5] Financial Performance - HWM's shares surged 92.6% over the past year, significantly outperforming the industry growth of 15.7% [6] - HWM is currently trading at a forward price-to-earnings ratio of 45.13X, above the industry average of 27.88X [9] - The Zacks Consensus Estimate for HWM's earnings has been rising, indicating positive revisions over the past 60 days [11]