Howmet Aerospace Reports Record Revenue Amid Defense Spending Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 20 2026
0mins
Source: NASDAQ.COM
Howmet Aerospace Inc. experienced a significant price drop of 5.04% as it crossed below its 20-day SMA, reflecting investor concerns despite positive market conditions.
The company reported record revenue of $8.3 billion for 2025, an 11% increase, with earnings per share (EPS) rising 32% to $3.71, driven by strong demand for its components in the defense sector, particularly for the F-35 program. However, despite these positive results and optimistic projections for 2026 revenue between $9 billion and $9.2 billion, Howmet's stock fell, indicating a potential sector rotation as investors reassess growth valuations amid a broader market rally.
This decline may suggest that while Howmet Aerospace shows strong growth potential, its high forward P/E ratio could be causing investors to shift focus towards more stable dividend-paying stocks like Lockheed Martin, which has a more attractive yield and a solid revenue backlog.
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Analyst Views on HWM
Wall Street analysts forecast HWM stock price to fall
13 Analyst Rating
12 Buy
1 Hold
0 Sell
Strong Buy
Current: 277.910
Low
209.00
Averages
236.77
High
258.00
Current: 277.910
Low
209.00
Averages
236.77
High
258.00
About HWM
Howmet Aerospace Inc. is engaged in lightweight metals engineering and manufacturing. Its segments include Engine Products, Fastening Systems, Engineered Structures and Forged Wheels. Engine Products produces investment castings, including airfoils, and seamless rolled rings primarily for aircraft engines and gas turbine applications. Engine Products produces rotating parts, as well as structural parts. Fastening Systems produce aerospace fastening systems, as well as commercial transportation. Fastening Systems’ products are also critical components of commercial transportation vehicles and construction, industrial, and renewable energy equipment. Engineered Structures produces titanium ingots and mill products for aerospace and defense applications and is vertically integrated to produce titanium forgings, titanium extrusions, and landing gear components. Forged Wheels provides forged aluminum wheels and related products for heavy-duty trucks and the commercial transportation market.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Share Expansion: Howmet's aerospace spare parts sales skyrocketed 48% year-over-year in 2025, accounting for approximately 23% of total revenue, indicating that its high-margin aftermarket business is becoming a crucial revenue driver, further solidifying its market position.
- Successful Acquisition Strategy: Howmet finalized its $1.8 billion acquisition of Consolidated Aerospace Manufacturing, projected to add about $275 million in revenue and $60 million in adjusted EBITDA for 2026, demonstrating its ability to enhance its product portfolio through acquisitions.
- Strong Capital Returns: TransDigm repurchased $905 million in shares in the first half of fiscal 2026 while raising its revenue guidance midpoint by $420 million, now targeting $10.3 billion to $10.42 billion, reflecting its robust growth potential in the aftermarket and effective capital management.
See More
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- Howmet's Performance Growth: Howmet Aerospace reported $2.3 billion in revenue for Q1, a 19% year-over-year increase, with earnings per share (EPS) of $1.44, up 71%, driven by strong aftermarket demand, which is expected to continue benefiting from the maintenance needs of aging fleets.
- TransDigm's Market Advantage: TransDigm achieved $2.54 billion in revenue in Q2, an 18.3% year-over-year increase, with EPS of $9.20, up 11.6%, as its high-margin aftermarket business significantly contributed to its financial performance, showcasing its pricing power and competitive edge in the aerospace parts market.
- M&A Strategy Effectiveness: Howmet's $1.8 billion acquisition of Consolidated Aerospace in 2026 is projected to add $275 million in revenue and $60 million in adjusted EBITDA, demonstrating the success of its strategic focus on optimizing its product portfolio through acquisitions.
See More
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- Howmet's Revenue Growth: Howmet Aerospace reported $2.3 billion in revenue for Q1, a 19% year-over-year increase, with earnings per share (EPS) of $1.44, up 71%, driven by strong aftermarket demand as airlines maintain aging fleets, providing a stable revenue stream.
- TransDigm's Market Advantage: TransDigm achieved $2.54 billion in revenue in Q2, an 18.3% year-over-year increase, with EPS of $9.20, up 11.6%, as its high-margin aftermarket business significantly enhances overall profitability, showcasing its strong pricing power in the aerospace parts market.
- Acquisition Strategy Effectiveness: Howmet's $1.8 billion acquisition of Consolidated Aerospace Manufacturing is projected to add approximately $275 million in revenue and $60 million in adjusted EBITDA for 2026, demonstrating the effectiveness of its strategic portfolio optimization through acquisitions.
See More
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- TransDigm Sustained Growth: TransDigm's Q1 2026 results showed continued growth in aftermarket revenue, with its business model relying on long-term maintenance contracts that ensure stable cash flow, highlighting its strong pricing power in the aerospace components market.
- Howmet Aerospace Performance: Howmet Aerospace achieved a 19% revenue growth in Q1 2026, reaching $2.31 billion, with adjusted EPS up 42%, showcasing strong performance in the aircraft engine components market, and as the commercial aviation cycle accelerates, the company's margins are expected to improve.
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