Key Takeaways HON's Aerospace Technologies organic revenues rose 13.2% year over year in the first nine months of 2025.Honeywell is benefiting from strong commercial aviation aftermarket demand and recovering OEM production.HON expects high-single- to low-double-digit organic sales growth in aerospace for full-year 2025.Honeywell International Inc. (HON) is benefiting from strong momentum in the Aerospace Technologies segment. The segment’s organic revenues surged 13.2% year over year in the first nine mont ...

Core Insights - Honeywell International Inc. is experiencing significant growth in its Aerospace Technologies segment, with organic revenues increasing by 12% year over year in Q3 2025, representing over 43% of its total business [2][9] - The commercial aviation aftermarket business is a key driver, with organic sales surging 19% year over year in Q3 2025, supported by strong demand and supply-chain improvements [3][9] - The defense and space business is also performing well due to stable defense spending and geopolitical factors, contributing to overall growth [4][5] Aerospace Technologies Segment Performance - Organic revenues from the Aerospace Technologies segment increased by 12% year over year in Q3 2025, following increases of 9% and 6% in the first and second quarters, respectively [2][9] - The commercial aviation aftermarket saw a 19% year-over-year increase in organic sales in Q3 2025, following increases of 15% and 7% in the previous quarters [3][9] - The recovery in the commercial aviation OEM business is expected to continue, driven by improved production and reduced customer destocking [3] Market Outlook - Honeywell anticipates high-single to low double-digit growth in organic sales for the Aerospace Technologies segment in 2025, supported by ongoing strength in both commercial aviation and defense markets [5] - The defense and space business is expected to benefit from stable U.S. and international defense spending [4][5] Competitive Landscape - Howmet Aerospace Inc. reported a 24% year-over-year increase in revenues from the defense aerospace market in Q3 2025, driven by demand for engine spares related to the F-35 program [6] - RTX Corporation experienced 11.9% sales growth in Q3 2025, supported by strong performance in the Collins Aerospace and Pratt & Whitney segments [7] Financial Performance and Valuation - Honeywell's shares have declined by 16.8% over the past year, compared to a 5.5% decline in the industry [8] - The company is currently trading at a trailing price-to-earnings ratio of 18.11X, above the industry average of 16.56X [10] - The Zacks Consensus Estimate for Honeywell's 2025 earnings has increased by 0.8% over the past 30 days [11]

Core Insights - Howmet Aerospace Inc.'s defense aerospace market is a significant growth driver, with revenues from this segment accounting for 17% of total sales in Q2 2025, reflecting a 21% year-over-year increase [1][8] - The demand for engine spares, particularly for the F-35 program, and increased orders for fighter jet parts are key contributors to this revenue surge [1][8] - The Engineered Structures segment reported a 5% year-over-year revenue increase, supported by a strong pipeline of military aircraft programs and a robust defense budget [2] Financial Performance - The House of Representatives passed the fiscal year 2026 Defense Appropriations Act, allocating $831.5 billion, which is expected to benefit Howmet's defense business and boost its top line [3] - The Zacks Consensus Estimate for revenues from the defense aerospace market in Q3 2025 is projected at $351 million, indicating a 21.5% year-over-year increase [4] - Howmet's shares have surged 98.9% over the past year, outperforming the industry growth of 24.4% [7] Competitive Landscape - GE Aerospace's Defense & Propulsion Technologies business is also experiencing growth due to rising demand for advanced propulsion systems, securing a $5 billion contract from the U.S. Air Force [5] - Textron Inc.'s defense business is gaining momentum with key U.S. military contracts, including a contract with the Tunisian Air Force for 12 SUBARU Bell 412EPXs [6] Valuation and Estimates - Howmet is trading at a forward price-to-earnings ratio of 48.52X, above the industry average of 29.55X, with a Value Score of B [9] - The Zacks Consensus Estimate for Howmet's 2025 earnings has increased by 0.3% over the past 60 days [10]

Group 1: Company Performance - Howmet Aerospace Inc. (HWM) is experiencing strong momentum in the commercial aerospace market, which is its key growth driver, contributing 52% of total revenues in Q2 2025 with an 8% year-over-year sales increase [1][8] - The demand for wide-body aircraft is being fueled by resilient air travel demand, encouraging original equipment manufacturers (OEMs) to increase spending, which benefits Howmet as it supplies advanced components [2] - Positive production trends at major aircraft manufacturers like Boeing and Airbus are supporting Howmet's performance, with Boeing expected to recover production of its 737 MAX jets and Airbus maintaining healthy build rates for its A320/321 aircraft [3][4] Group 2: Industry Trends - The commercial aerospace market is expected to remain the primary business catalyst for Howmet in the near term, driven by strong travel demand and rising aircraft production [4] - Competitors in the commercial aerospace market are also showing positive performance, with Textron Inc. reporting 5.4% sales growth and GE Aerospace's revenues from Commercial Engines & Services jumping 30% year-over-year in Q2 2025 [5][6] Group 3: Financial Metrics - Howmet's shares have surged 84.9% over the past year, significantly outperforming the industry's growth of 13.1% [7] - The company is currently trading at a forward price-to-earnings ratio of 43.04X, which is above the industry average of 27.85X [10] - The Zacks Consensus Estimate for HWM's earnings has been on the rise over the past 60 days, indicating positive market sentiment [12]

Core Insights - Howmet Aerospace Inc. (HWM) is experiencing significant growth in its defense aerospace market, with a 21% year-over-year revenue increase in Q2 2025, accounting for 17% of total sales [1][8] - The Engineered Structures segment also reported a 5% year-over-year revenue increase, driven by strong demand in the defense aerospace sector [2][8] - The recent passage of the fiscal year 2026 Defense Appropriations Act, allocating $831.5 billion, positions Howmet to secure more contracts and enhance its revenue potential [3][4] Segment Performance - The Engineered Structures segment's revenue growth is attributed to increased military funding and demand for engine spares, particularly related to the F-35 program [2][4] - Howmet's defense aerospace market is expected to maintain strong demand momentum due to consistent government support and robust military programs [4] Competitive Landscape - Textron Inc. is also gaining momentum in its defense business, securing contracts with the U.S. military, including a recent deal with the Tunisian Air Force [5] - GE Aerospace's Defense & Propulsion Technologies business is benefiting from rising demand, having secured a $5 billion contract from the U.S. Air Force [6] Financial Performance - Howmet's shares have surged 78.7% over the past year, significantly outperforming the industry growth of 12.1% [7] - The company is currently trading at a forward price-to-earnings ratio of 42.73X, above the industry average of 27.25X, indicating a premium valuation [10] Earnings Estimates - The Zacks Consensus Estimate for HWM's 2025 earnings has been on the rise over the past 60 days, reflecting positive sentiment among analysts [11]

Core Insights - Howmet Aerospace Inc. (HWM) is experiencing significant growth, particularly in the commercial aerospace sector, which accounted for 52% of total revenues in Q1 2025, with a year-over-year revenue increase of 9% [1][9] Group 1: Commercial Aerospace Market - The demand for wide-body aircraft is rising due to increased air travel, leading original equipment manufacturers (OEMs) to boost their spending [2] - The growth in the commercial aerospace market is also driven by the demand for fuel-efficient aircraft and the recovery of Boeing 737 MAX production, which is expected to enhance demand for HWM's products [3][9] - HWM's peers, such as RTX Corporation and GE Aerospace, are also reporting strong growth in the commercial aerospace market, with RTX achieving 8% organic sales growth and GE benefiting from solid demand for its engines [5][6] Group 2: Defense Aerospace Market - The defense aerospace market is showing positive momentum, driven by increased demand for engine spares, particularly for the F-35 program, and rising military budgets [4] Group 3: Financial Performance - HWM's stock has surged 127.8% over the past year, significantly outperforming the industry average growth of 17.2% [8] - The company is currently trading at a forward price-to-earnings ratio of 47.53X, which is above the industry average of 26.71X [11] - The Zacks Consensus Estimate for HWM's earnings has been increasing over the past 60 days, indicating positive market sentiment [12]

Core Insights - Howmet Aerospace Inc. (HWM) is experiencing growth due to an expanding defense budget, which serves as a key growth catalyst for the company [1] Financial Performance - In Q1 2025, revenues from the defense aerospace market increased by 19% year over year, accounting for 17% of HWM's total sales, driven by strong demand for engine spares, particularly for the F-35 program [2] - The Engineered Structures segment reported an 8% year-over-year revenue increase, supported by a 36% rise in defense aerospace sales [2][8] - HWM's shares surged by 114.6% over the past year, significantly outperforming the industry growth of 13.7% [7] Market Environment - The U.S. Senate Committee on Appropriations approved a fiscal 2025 Defense Appropriations Act, allocating $852.2 billion, reflecting a 3.3% increase from fiscal 2024 [3][8] - The increase in military funding positions HWM to secure more contracts, particularly with strong momentum in the F-35 program [4] Competitive Landscape - Textron Inc. (TXT) is gaining momentum in its defense business, securing a U.S. Navy contract worth up to $100 million in Q1 2025 [5] - GE Aerospace's Defense & Propulsion Technologies business is benefiting from rising demand for advanced propulsion systems, securing a U.S. Army IDIQ contract for F110 engines [6] Valuation and Estimates - HWM is trading at a forward price-to-earnings ratio of 45.70X, above the industry average of 26.22X, and carries a Value Score of F [10] - The Zacks Consensus Estimate for HWM's earnings has been on the rise over the past 60 days, with current estimates for the current year at $3.46 and next year at $4.10 [12][13]