10 Best Performing Defense Stocks So Far in 2025

8. Howmet Aerospace Inc. (NYSE:HWM)

YTD Gains as of March 25: 25.92%

Howmet Aerospace Inc. (NYSE:HWM) manufactures components for aircraft engines, fasteners, aluminum wheels for trucks, and titanium structures for aerospace and defense applications. It is one of the best performing stocks so far in 2025, with year-to-date gains of 25.92%.

On February 13, the company reported stellar results for the fourth quarter and full year 2024. Q4 revenue increased 9.1% year-over-year to reach $1.9 billion, whereas net income grew 33% from last year to $314 million, driven by robust growth in the commercial aerospace business.

Full-year revenue stood at $7.4 billion, up 12% from last year. Howmet Aerospace Inc. (NYSE:HWM)’s net income surged 57% to $1.2 billion. The operating income margin stood at 22%. GAAP EPS for the year was logged at $2.81, compared to $1.83 per share in the prior year.

The company anticipates another strong year ahead, amid rising OEM production rates, continued demand for commercial aviation and engine spare parts, and growth in the defense aerospace aftermarkets. Following the earnings call, several notable analysts raised their price targets for Howmet Aerospace Inc. (NYSE:HWM), attracting investor interest.

Hardman Johnston Global Equity Strategy stated the following regarding Howmet Aerospace Inc. (NYSE:HWM) in its Q4 2024 investor letter:

“From a sector standpoint, the main drivers of the portfolio’s outperformance during the fourth quarter were Industrials and Materials. Within Industrials, Howmet Aerospace Inc. (NYSE:HWM) and Vertiv Holdings Co. were the largest contributors to outperformance. Howmet reported an earnings beat during the quarter with broad-based strength spanning across all key segments. In particular, the company’s Engine Products and Fasteners segment performed well. During the earnings call, management spent significant time describing the emerging new growth driver of industrial gas turbines, which are used in gas power plants, which have become a focus for investors due to accelerating demand from AI data centers. Howmet is the leading supplier to the three major producers of these engines and will benefit from both initial purposes and the long-term maintenance demand.”

Wall Street analysts are bullish on Howmet Aerospace Inc. (NYSE:HWM) with a consensus Buy rating. According to Insider Monkey’s database for Q4 2024, 58 hedge funds held a stake in the company, up from 45 at the end of the third quarter.