CW vs HWM

Key Takeaways

• Curtiss-Wright (CW) delivered record FY2025 sales of $3.5 billion, with adjusted diluted EPS growing 21% year-over-year and a backlog of $4.1 billion, underscoring robust demand across naval defense and commercial nuclear end markets.
• Howmet Aerospace (HWM) reported FY2025 revenue of $8.25 billion, up 11%, powered by a 15% increase in commercial aerospace and a 24% surge in defense aerospace revenues.
• Both stocks have posted exceptional multi-year returns, with CW up roughly 522% over five years and HWM up approximately 773% over the same period, reflecting sustained aerospace and defense sector tailwinds.
• CW offers a more diversified portfolio spanning aerospace, defense electronics, naval propulsion, and nuclear energy, while HWM is more concentrated in aerospace engine components, fastening systems, and forged wheels.
• HWM carries a substantially larger market capitalization (approximately $109 billion versus $26 billion for CW), which may appeal to investors seeking large-cap stability.
• Both companies maintain strong balance sheets, though CW has a notably lower debt-to-equity ratio of 0.29 compared with HWM's net leverage ratio of 1.1x net debt-to-EBITDA (earnings before interest, taxes, depreciation, and amortization).

Introduction

The aerospace and defense sector has been one of the strongest-performing areas of the equity market in recent years, fueled by rising global defense budgets, a multi-year commercial aerospace upcycle, and renewed investment in nuclear energy infrastructure. Two standout companies in this space — Curtiss-Wright Corporation (CW) and Howmet Aerospace Inc. (HWM) — have each rewarded shareholders with exceptional returns. While both operate within the same broad industrial ecosystem, their business models, growth drivers, and risk profiles differ in meaningful ways. This stock comparison examines how these two aerospace and defense leaders stack up across key dimensions, helping investors and traders evaluate their relative positioning in today's market.

CW Overview and Recent Performance

Curtiss-Wright Corporation (CW) is a diversified global engineering firm that designs and manufactures highly engineered, mission-critical products for aerospace, defense, and industrial markets. Headquartered in Davidson, North Carolina, the company operates through three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power. Its technologies span flight control actuation systems, sensors, pumps and valves, power conversion equipment, and integrated platform solutions for marine and ground defense applications. Defense-related contracts account for roughly 60% of the company's revenues.

In recent market activity, CW has continued to build on a record-setting FY2025, during which the company delivered sales of $3.5 billion (up 12%), adjusted operating margin of 18.6%, and adjusted diluted EPS (earnings per share) of $13.23 (up 21%). Free cash flow reached a record $554 million, representing 111% FCF (free cash flow) conversion. The company's backlog grew 18% to $4.1 billion, driven by strong demand in naval defense — particularly submarine programs — and commercial nuclear markets. In the first quarter of 2026, CW posted revenue of $913.69 million, up 13.4% year-over-year, and EPS of $3.48, beating consensus estimates. The company also announced an $80 million multi-year expansion of its Cheswick, Pennsylvania facility to increase manufacturing and testing capacity for naval defense and nuclear applications. Analyst consensus currently stands at "Moderate Buy," with price targets ranging from approximately $724 to $870, reflecting cautious optimism about continued momentum.

HWM Overview and Recent Performance

Howmet Aerospace Inc. (HWM) is a leading global provider of advanced engineered solutions for the aerospace and transportation industries. The company's portfolio includes jet engine components, aerospace fastening systems, titanium and aluminum structural parts, and forged aluminum wheels for commercial transportation. Its primary business segments are Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. HWM derives a significant majority of its revenue from aerospace end markets, with commercial aerospace and defense aerospace serving as the dominant growth engines.

In recent quarters, HWM has demonstrated remarkable financial momentum. For full-year 2025, the company reported revenue of $8.25 billion, an 11% increase from the prior year, and diluted EPS of $3.71, up nearly 32%. The third quarter of 2025 was particularly strong: revenue reached $2.09 billion (up 14% year-over-year), adjusted EBITDA surged 26% to $614 million, and EBITDA margins expanded by 290 basis points to 29.4%. Commercial aerospace revenue grew 15%, while defense aerospace jumped 24%. The Engine Products segment led the way with 17% revenue growth and a 33.3% adjusted EBITDA margin. Net leverage improved to just 1.1x net debt-to-EBITDA, and S&P upgraded the company's credit rating to BBB+. Looking ahead, management has guided for approximately $9 billion in revenue for 2026, supported by record commercial aerospace backlogs and sustained defense spending. The stock's price performance has been extraordinary, with a five-year total return of roughly 773%.

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Head-to-Head Comparison

While both CW and HWM benefit from powerful secular tailwinds in aerospace and defense, their investment profiles differ in several important respects. Business model diversification is a key differentiator: CW is a diversified engineering company with meaningful exposure to naval defense submarines, commercial nuclear energy, and defense electronics alongside commercial aerospace. HWM, by contrast, is more narrowly focused on aerospace engine components, fasteners, and structural parts — giving it higher concentration in the commercial aerospace cycle.

Scale and market cap represent another clear contrast. HWM's market capitalization of roughly $109 billion is more than four times that of CW's approximately $26 billion. This larger size, combined with higher daily trading liquidity, may appeal to institutional investors and those prioritizing large-cap stability. Margin profiles also diverge: HWM consistently delivers higher EBITDA margins (29.4% in Q3 2025), while CW has been steadily expanding its adjusted operating margins toward the 19% range. Balance sheet strength favors CW, which carries a debt-to-equity ratio of just 0.29, compared with HWM's net leverage of 1.1x.

Risk factors vary as well. HWM faces headwinds in its Forged Wheels segment, where commercial transportation volumes have declined by double digits, and ongoing tariff uncertainty has created a modest margin drag. CW's exposure to government defense contracts provides revenue visibility but also subjects it to potential shifts in federal budget priorities. Valuation reflects the market's enthusiasm for both names: CW trades at a trailing P/E (price-to-earnings ratio) of approximately 52, while HWM trades at a significantly higher multiple given its faster near-term EPS growth trajectory and premium ascribed to pure-play aerospace assets.

Tickeron AI Verdict

Based on observable factors such as trend consistency, relative momentum, and growth catalyst visibility, Tickeron's AI-driven analysis would likely favor Howmet Aerospace (HWM) in the current market environment, while acknowledging compelling merits in both stocks. HWM benefits from stronger and more consistent top-line acceleration — with commercial aerospace revenue growing 15% and defense aerospace surging 24% in recent quarters — paired with industry-leading EBITDA margins approaching 30%. The company's 2026 revenue guidance of $9 billion implies continued double-digit growth, supported by record aircraft backlogs that are largely independent of near-term economic fluctuations. Additionally, HWM's larger market capitalization, higher trading liquidity, and S&P credit rating upgrade to BBB+ contribute to a more favorable relative positioning from a trend-following perspective. That said, CW's lower leverage, diversified end-market exposure across naval defense and nuclear energy, and steadily expanding margins make it an equally well-supported holding for risk-conscious investors who value balance-sheet resilience. In probabilistic terms, the AI would likely assign a modest edge to HWM based on momentum and earnings revision trends, while recognizing that both stocks exhibit the hallmarks of sustained institutional accumulation.

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