Howmet Aerospace is well-positioned to benefit from rising demand for next-generation jet engines, according to BNP Paribas Research. The bank reiterated its outperform rating and a $240 price target on the company's stock.
BNP Paribas said production of next-generation airfoils and blades for Pratt & Whitney's GTF and CFM's LEAP engines is progressing smoothly, with the company shipping mostly new blades for the LEAP-1A.
Certification of the LEAP-1B blades is expected at some point next year with a “subsequent ramp in deliveries”, and GTF's newly upgraded ‘Advantage’ blades to likely be fully ramped up around 2027.
Howmet Aerospace reported third-quarter 2025 revenue of $2.09bn, up around 14% compared to the same period last year, which was driven by commercial aerospace growth. Net income grew to $385 million in the quarter, up from $332 million a year prior.
For the fourth quarter, the company has guided revenues of between $2.09bn and $2.11bn. EBITDA is forecast to be between $605 million and $615 million.
Full-year revenues are guided between $8.175bn and $8.195bn. Full year EBITDA is forecast to be around $2.37bn and $2.38bn.
BNP Paribas analysts noted no changes were made by Howmet on its guidance.