Woodward (WWD) and Howmet Aerospace (HWM) are expected to benefit from a strong engine market in their quarterly results, RBC Capital Markets said in a note Monday.
"The readthrough from the 2Q26 results so far, most notably from GE and P&W (RTX), point to strength in both commercial aerospace engine OE and AM results," the report said.
The note pointed to GE CES services and Pratt & Whitney aftermarket growth rising mid-20%, and GE and Pratt & Whitney commercial engine deliveries growing 22% year-over-year and 5% sequentially.
Howmet is expected to raise its 2026 guidance as confidence in the engine supply chain improves, the report said. Its Q2 results are due Aug. 6.
Woodward is also expected to increase its guidance on strong engine volume and aftermarket growth, the note said. The company will report its Q3 results on July 29.
RBC raised its price target on Howmet to $325 from $300, while maintaining Woodward at $450. It kept both at outperform.
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