Howmet’s acquisition of CAM could be 2% accretive to 2026 EPS, Jefferies says

Jefferies analyst Sheila Kahyaoglu notes that Howmet Aerospace (HWM) is acquiring Consolidated Aerospace Manufacturing from Stanley Black & Decker (SWK) at an all-cash purchase price of $1.8BB. Assuming mid-Q2 close and half new debt financing, the deal could be 2% accretive to 2026 EPS and more than 3% in its first full year, the firm adds. Howmet’s management expects CAM will generate FY26 revenue in the range of $485M-$495M, compared to Stanley Black & Decke’s management stating the business will generate $405M-$415M in sales in FY25, which could suggest about 20% year-over-year growth, Jefferies adds. The firm has a Buy rating on Howmet with a price target of $245.