Howmet Aerospace (HWM) benefits from robust commercial aerospace recovery and surging AI-driven electricity demand, underpinning multi-year growth visibility. HWM's precision-engineered, high-temperature components and deep economic moat secure recurring, high-margin aftermarket revenues and strong customer retention. Recent market pullback, driven by overblown new entrant fears, presents a compelling buy opportunity given HWM's irreplaceable technical expertise and regulatory barriers.
Howmet Aerospace Inc. HWM has been benefiting from strong momentum in the commercial aerospace market. Following year-over-year growth of 20% in first-quarter 2026, revenues from the commercial aerospace market increased 28% in the second quarter.
Howmet delivered strong Q2 results, with 24% revenue growth, 21% organic growth, 39% adjusted EBITDA growth, and 46% adjusted EPS growth. Industrial gas turbines and commercial aerospace remain major growth drivers, while tight turbine capacity and long-term customer agreements support strong demand visibility. My DCF estimates intrinsic value at $120.69 per share, leaving Howmet trading about 87% above fair value despite aggressive free-cash-flow growth assumptions.
Howmet (HWM) closed the most recent trading day at $225.26, moving +1.21% from the previous trading session.
Howmet Aerospace is upgraded to Strong Buy with a $318/share price target, reflecting attractive valuation and robust end-market demand. HWM is positioned for durable growth as gas turbine and commercial aerospace manufacturers expand production capacity and backlogs through 2030. Recent acquisitions, including CAM and Brunner, expand HWM's product portfolio and are expected to drive incremental revenue and margin expansion by eFY27.
Howmet Aerospace Inc. HWM achieved a solid adjusted EBITDA of $817 million in the second quarter of 2026, which surged 39% year over year. The company's adjusted EBITDA margin reached 32.1%, reflecting an increase of 340 basis points (bps).
The latest trading day saw Howmet (HWM) settling at $222.75, representing a -3.82% change from its previous close.
The mean of analysts' price targets for Howmet (HWM) points to a 40.5% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.
HWM's strong aerospace demand, higher 2026 guidance and shareholder returns support growth, though high debt and a premium valuation remain concerns.
Here is how Howmet (HWM) and RTX (RTX) have performed compared to their sector so far this year.
In the closing of the recent trading day, Howmet (HWM) stood at $228.51, denoting a +1.03% move from the preceding trading day.
Howmet (HWM) could produce exceptional returns because of its solid growth attributes.