Howmet Aerospace Is Emerging As The S&P 500’s Top Performer, But Trade Turbulence Is Testing Its Flight Path

Big dreams need small parts — and this underrated manufacturer is cashing in on both. Howmet AerospaceHWM

is the lesser-known company behind 90% of all structural and rotating components found in aircraft engines. As global air travel rebounds, Howmet has found itself in the enviable position of being critical to the industry’s recovery.

Built to fly, priced to soar: Howmet Aerospace, with its near-monopoly on complex aviation materials, has become one of the field’s most indispensable suppliers. Its Engine Products segment alone pulls in half of the business’ revenue, thanks to high-performance turbine blades and other critical jet engine pieces. As of Q4 2024, Howmet holds an 85.8% market share in the miscellaneous fabricated products segment — a testament to both demand and its unmatched role in keeping global aviation running.

• Howmet is up 54.8% YTD, making it one of the best performers in the S&P 500 — well ahead of Boeing’sBA
  18.6% and Airbus’EADSY
  15.3% gains over the same stretch.
• Since 2019, Howmet has doubled its turbine blade output while cutting its workforce in half, but still meeting rising demand for Boeing and Airbus’ post-pandemic production.

Blade Runner Economics

Howmet’s hot streak might be facing some headwinds, with tariff uncertainty starting to creep in. CEO John Plant mentioned sending out force majeure letters to customers —  formal notices that act as a precaution in case trade duties throw a wrench in operations, allowing the corporation legal flexibility if it can’t meet certain obligations. But with solid fundamentals and a $67B market cap, this enterprise could still be in a strong spot to handle whatever comes its way.

• Howmet posted record Q1 revenue of $1.94B while net income was up 41.5%, fueled by a jump in commercial aerospace sales.
• The turbine maker also raised its full-year profit guidance to $3.36–$3.44 per share, a sharp upgrade from its earlier $3.13–$3.21 range.

Check engine light: The aerospace parts builder is now the top performer in RBC Capital’s coverage, triggering a wave of price target changes. RBC hiked its target to $200, citing stronger margins and favorable trends for OEMs, while Truist raised its target to $192 on renewed MAX optimism. But not everyone’s onboard — Wells Fargo’s Matthew Akers downgraded the stock and stuck with a much lower $118 target, warning that “expectations built into the company’s valuation might be challenging to meet in the context of a decelerating economic growth.”  Still, as increasing defense budgets are also driving demand for military aircraft components, Howmet might just be a stealth bet on the aviation rebound.