Howmet Aerospace, a Pittsburgh-based maker of fasteners and castings for the aerospace industry, has lifted its financial targets for 2026. The company now expects adjusted earnings of $5.23 to $5.31 per share, up from its previous forecast of $4.88 to $5.00. It also raised its revenue outlook to $10.0 billion to $10.1 billion, compared with the earlier range of $9.58 billion to $9.73 billion.
The upgrade comes as Boeing and Airbus, the world's two largest plane makers, have ramped up orders for parts. That signals the commercial jet supply chain is leaning more heavily on key suppliers like Howmet as production slowly climbs again after years of pandemic-related disruptions.
Why the demand is picking up
Airlines are eager to take delivery of new, more fuel-efficient jets to meet rising travel demand and replace older aircraft. But plane makers have struggled to get enough engines, fuselages, and other components from their suppliers. Howmet, which makes critical parts like fasteners that hold aircraft together and castings used in engines, is one of those suppliers. When Boeing and Airbus increase their production rates, they order more from companies like Howmet.
The company is also seeing extra demand for gas-turbine blades used in data centers. These blades are a key component in turbines that generate electricity. As artificial intelligence workloads surge, data center operators are adding onsite power generation to keep servers running reliably. That has created a new source of demand for Howmet's products beyond traditional aerospace.
This isn't the first time a supplier has benefited from the AI-driven data center boom. Siemens recently raised its outlook after record orders from AI data centers, and Kokusai Electric saw a 71% profit jump on AI chip demand. For Howmet, the data center angle adds a second growth engine on top of the recovering jet market.
What it means for investors
For everyday investors, Howmet's raised outlook is a positive sign for the aerospace supply chain. It suggests that Boeing and Airbus are confident enough in their production plans to order more parts, which could bode well for other suppliers in the sector. It also shows that companies with exposure to both aerospace and data center infrastructure can benefit from two powerful trends at once.
However, the hard part in aerospace isn't always demand—it's execution. Suppliers have faced labor shortages, supply chain bottlenecks, and quality control issues in recent years. Howmet will need to deliver on its promises, and any production hiccups could affect its ability to meet the higher targets.
Investors should also note that Howmet's outlook is for 2026, which is still a couple of years away. That means there's plenty of time for things to change. The company's ability to hit these numbers will depend on how quickly Boeing and Airbus can actually ramp up production, and whether the data center boom continues.
For context, other companies have also been adjusting their outlooks recently. EPAM trimmed its 2026 revenue outlook as tech clients pulled back, while Glanbia lifted its profit outlook on strong protein sales. Each company's situation is different, but the pattern shows how outlooks can shift as market conditions evolve.
The bottom line
Howmet's raised targets are a vote of confidence in the aerospace recovery and the growing energy needs of data centers. For investors, it's a reminder that companies in the supply chain can be well-positioned when their customers are expanding. But as always, it's important to consider the risks, including execution challenges and the cyclical nature of the aerospace industry.
As the story develops, investors will be watching for updates from Boeing and Airbus on their production schedules, as well as any signs of strain in the supply chain. Howmet's ability to meet its raised targets will be a key test of whether the aerospace recovery is truly taking hold.
