Howmet makes metal parts for jet engines, aircraft and commercial vehicles, and its margin widened again in the third quarter of 2026. The question is whether it holds while Howmet carries acquisition debt and spends more buying back shares.
If you have flown recently, the jet engine may have contained parts cast by Howmet, and Howmet's specialised bolts and fasteners may have helped hold the plane together. Howmet makes engineered metal parts for aircraft engines and airframes. It also makes wheels for commercial vehicles, forged from solid metal under pressure and sold under the licensed Alcoa name. Aerospace is its biggest market. Customers pay for parts whose value lies in how they are made.
Aircraft demand drives the business: it follows how many planes manufacturers build and how much airlines spend on spare parts. A few large customers decide much of the outcome. The largest, GE Aerospace and RTX, buy mostly engine parts. Howmet's edge comes from trade secrets about manufacturing processes and metal recipes, not from heavy research spending. The costs that matter are metals such as nickel and titanium, energy and skilled workers. How much it keeps depends heavily on its plants and the people who run them, and on passing rising metal and energy costs on to customers.
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