Howmet Aerospace Inc. (NYSE:HWM) is one of Jim Cramer’s Hottest Defense Technology Stock Picks. Howmet Aerospace Inc. (NYSE:HWM) caters to the defense industry by providing engine components, fasteners, and other items. Its shares are up by 73% over the past year and by 33% since Cramer discussed the firm in April. Howmet Aerospace Inc. (NYSE:HWM)’s stock closed 12% higher on February 12th, on the day the firm reported its fiscal fourth quarter earnings report. As part of the release, the firm guided its ...

Core Insights - Two foreign defense stocks, Tat Technologies and Leonardo DRS, surged approximately 5% this week due to increased global demand for military systems amid escalating tensions in the Middle East, particularly following the U.S. war with Iran [1] - Both companies have seen significant gains in 2026, with Tat up about 30% and Leonardo up nearly 35% since the beginning of the year [1] Company Summaries Tat Technologies - Tat Technologies, based in Israel, specializes in aerospace and provides maintenance and repair services for military aircraft, along with manufacturing parts for military planes [1] - The stock price is currently around $59.50, slightly above the mean analyst price target of $58.67, with analysts expecting the company to expand production capabilities and complete an M&A deal this year [1] - Analysts from Lake Street Capital rated the stock a buy with a price target of $59, indicating confidence in the company's growth potential [1] Leonardo DRS - Leonardo DRS, based in Italy, is a leading European defense firm and a key supplier to NATO, known for products like military helicopters and naval weaponry systems [1] - The company reported an 8% revenue growth to $1.06 billion and an adjusted diluted earnings gain of 11% to 42 cents per share during its most recent earnings call [1] - For 2026, Leonardo DRS forecasts revenue growth between 6% and 8%, with a backlog increase of 3% to $8.7 billion [1] - The company is significantly investing in R&D, with a 40% increase in spending and a focus on high-growth markets, including airborne and unmanned systems [1]

Financial Performance & Transformation - NN's sales reached $424 million, supplemented by a $130 million joint venture, achieving an adjusted EBITDA of $48 million with an 11% margin[11] - NN achieved a 45% growth in adjusted EBITDA, demonstrating improved margins and positive free cash flow[7] - NN's Q3 2025 net sales were $103.9 million with an adjusted EBITDA of $12.4 million, representing an 11.9% margin[48] - NN's adjusted EBITDA margin increased by 170 bps to 11.9% in Q3 2025 compared to 10.2% in Q3 2024[51] - NN's Q3 2025 adjusted gross margin was 18.8%, a 350 bps increase compared to Q1 2025[48] Strategic Initiatives & Growth - NN secured $182 million in new business wins, reshaping the net sales profile[7] - NN is targeting organic sales growth to over $600 million and $1+ billion with M&A activities[25] - NN is launching over 150 programs in 2025/26, with a new standard operating procedure (SOP) exceeding $100 million[25] - NN anticipates $40-$50 million in revenue from new wins[20] Global Footprint & Market Focus - NN has a global footprint with approximately 65% of sales in North America, 10% in South America, 10% in Europe, and 15% in China[14] - NN's China JV has $130 million in sales (2025 estimate) and operates with a workforce of approximately 700 people[16]

Group 1 - GE Aerospace is identified as a high growth mega cap stock suitable for long-term investment over the next three years [1] - A tentative five-year agreement has been signed between the United Auto Workers and GE Aerospace, covering employees at the Evendale, Ohio, and Erlanger, Kentucky facilities [1][3] - The agreement includes provisions for job security, bonus vacation days, and healthcare expenses, with GE Aerospace committing to cover almost all premium increases during the contract term [2] Group 2 - The contract also establishes minimum staffing levels and introduces new work opportunities at both sites [2] - The tentative agreement follows a call for a strike by 600 workers advocating for stronger protections and benefits, with a ratification vote scheduled for September 19 [3] - GE Aerospace, a subsidiary of General Electric Company, specializes in commercial and defense aircraft engines, mechanical aircraft systems, and engine components [4]