Howmet Aerospace: Upgrade To Buy As Earnings Power Is A Lot Stronger Than I Thought

Howmet Aerospace (HWM) is upgraded to Buy as earnings power and growth momentum strengthen, despite a demanding valuation. Q1 2026 saw revenue up 19% y/y, adj. EBITDA up 32% y/y, and adj. EPS up 42% y/y, driven by commercial aero spares and IGT. Commercial aero spares now comprise a larger, higher-margin revenue share, providing more durable growth less tied to new aircraft production.