Howmet Aerospace Inc. (HWM) and L3Harris Technologies, Inc. (LHX) are key players in the aerospace and defense industry, with Howmet specializing in jet engine components and L3Harris providing integrated technologies. Both companies are expected to benefit from growth in air travel and U.S. budgetary policies, but which stock offers more upside in 2026?

Howmet’s strong commercial aerospace market presence drives its business, with revenues from this sector increasing 15% year over year to over $1.1 billion in the third quarter of 2025. The company also sees growth in defense aerospace, with revenues surging 24% year over year in the same period.

In contrast, L3Harris is positioned to benefit from U.S. budget funding provisions and international demand. The company’s hypersonic missile tracking system and international projects, like the South Korea contract worth over $2.26 billion, contribute to its growth outlook. However, labor shortages and a highly leveraged balance sheet remain concerns.

The Zacks Consensus Estimate for Howmet’s 2026 sales and EPS show year-over-year growth of 12.2% and 20.3%, respectively. In comparison, L3Harris is expected to see 6.4% sales growth and 17.3% EPS growth in 2026. Both stocks have shown positive price performance over the past year.

While both Howmet and L3Harris have a Zacks Rank #3 (Hold), Howmet’s strong position in commercial and defense aerospace markets make it a more attractive pick for investors in 2026. Despite its higher valuation, Howmet’s prospects for sales and profit growth, along with its market leadership, give it an edge over L3Harris.

Read more at Nasdaq: Howmet vs. L3Harris: Which Aerospace & Defense Stock Has Greater Upside?