Key Takeaways HWM saw 8% growth in commercial and 21% rise in defense aerospace revenues in Q2 2025.HWM hiked its dividend twice in 2025 and has $1.8B remaining in share repurchase authorization.HWM's commercial and defense growth, shareholder returns and solid estimates make it the smarter buy over TXT.Howmet Aerospace Inc. (HWM) and Textron Inc. (TXT) are two familiar names operating in the aerospace and defense industry. As rivals, both companies are engaged in producing highly engineered aircraft compon ...

Group 1: Contract Wins and Revenue Stability - Boeing secured a $240 million contract from the U.S. Army Special Operations Aviation Command to remanufacture five MH-47G Block II Chinook helicopters, with deliveries set for 2027, increasing the total number of MH-47G Block II aircraft under Army contract to 51 [1] - The recent military contract wins reinforce Boeing's prominence in defense aviation and ensure long-term revenue stability, potentially encouraging investors to consider adding Boeing to their portfolios [2] Group 2: Stock Performance - Boeing's shares have risen 1.2% year-to-date, outperforming the S&P 500's loss of 3.3%, but lagging behind the Zacks aerospace-defense industry's rise of 4.1% and the broader Zacks Aerospace sector's growth of 4.5% [3] - Other aerospace companies like Embraer and Airbus have seen significant stock gains, with Embraer up 29.4% and Airbus up 14% year-to-date [4] Group 3: Growth Drivers - Boeing has secured numerous contracts in both commercial and defense aerospace, including a landmark order from Korean Air for up to 50 widebody airplanes and an order from Japan Airlines for 17 737-8 jets [5] - The demand for air travel and the replacement of aging fleets are expected to drive the need for new jets and aftermarket services, contributing to Boeing's growth [7] - Boeing forecasts a $4.4 trillion market opportunity for commercial aviation support and services from 2024 to 2043, which should benefit its jet service business unit that had a backlog of $21.40 billion as of December 31, 2024 [8] Group 4: Earnings Estimates - The consensus estimate for Boeing's long-term earnings growth rate is 17.4%, higher than the industry's 11.2% [10] - For first-quarter 2025, Boeing's sales estimate suggests a 16.9% improvement year-over-year, while full-year 2025 sales are expected to increase by 25.7% [11] - However, first-quarter 2025 earnings estimates indicate a decline of 24.8%, while the full-year 2025 earnings estimate shows an improvement of 89.1% [11] Group 5: Challenges and Risks - Boeing faces challenges such as persistent supply-chain issues affecting the global aviation industry, which could impact operational performance [15] - The estimated number of aircraft deliveries for 2025 has dropped to 1,802, indicating a 21.4% reduction in capacity due to ongoing supply-chain issues [16] - Boeing's trailing 12-month return on invested capital (ROIC) is negative and lags behind the industry's return, suggesting insufficient returns on investments [17]