By Mike Juang

Howmet Aerospace (HWM) is emerging as a key defense stock play from 2025 that could still have currency in 2026.

In 2025, the aerospace-focused metals stock gained from several tailwinds, including news it would acquire Stanley Black & Decker's aerospace division for $1.8 billion late last year.

The aerospace and defense sector surged in 2025, gaining more than 25% for the year. That handily beat the S&P 500's gains of 17%.

Howmet stock surged more than 87% last year after spiking 102% in 2024. It ranks a respectable 6th in the Aerospace/Defense Group, according to IBD Research, with a near-best Composite Rating of 97.

Howmet Aerospace focuses on metals used in aircraft, like fasteners, metal engine components and airframes. Its products include custom alloys that have attracted investor attention.

"There's just nothing like it in the world," Tom Carr, founder and CEO of DrStoxx.com, tells Investor's Business Daily's "Investing with IBD" podcast. He sees potential in the use of special metals around the industry and even in exports, with particular applications in fighter jets and defense building.

"They've got a big future ahead of them," Carr said. "Of course, with defense contracting being ramped up in the United States, that's a good place to be."

Earlier this week, President Donald Trump called for a massive military spending boost, asking for a fiscal 2027 defense budget of $1.5 trillion, a $500 billion increase. But that came on the heels of Trump's threat to suspend defense contractors' buybacks and dividends.

It's unclear how these potential Trump moves would affect Howmet, which is also a big civilian aerospace player.

Howmet stock moved above a 211.95 flat-base buy point on Jan. 5, but edged below that entry later in the week.

Follow Mike Juang on X at @mikejuangnews and on Threads at @namedvillage.

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This article was first published on Investor's Business Daily