Howmet Aerospace (HWM) AI Stock Analysis

• Market Cap: $70.95B
• Dividend Yield: 0.23%
• Average Volume (3M): 2.61M
• Price to Earnings (P/E): 51.4
• Beta (1Y): 1.32
• Revenue Growth: 8.85%
• EPS Growth: 51.50%
• Country: US
• Employees: 23,930
• Sector: Industrials
• Sector Strength: 83
• Industry: Industrial - Machinery
• EPS (TTM): 0.91
• Shares Outstanding: 403,126,300
• 10 Day Avg. Volume: 3,169,187
• 30 Day Avg. Volume: 2,607,212
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 10.17
• Enterprise Value/Gross Profit: 34.78
• Enterprise Value/Ebitda: 37.37
• 1Y Price Target: $206.38
• Price Target Upside: 17.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 75 Outperform
• Price Target: $199.00 ▲(13.07% Upside)

Howmet Aerospace's strong financial performance and positive earnings call are the most significant factors driving its stock score. Technical indicators suggest some bearish momentum, and the high P/E ratio indicates potential overvaluation. Despite these concerns, the company's robust financial health and strategic initiatives provide a solid foundation for future growth.

Positive Factors

Defense Revenue Growth

HWM printed another strong quarter in defense with revenue growth of 21%, driven by demand for legacy defense programs and the F-35.

Financial Performance

Howmet Aerospace exceeded expectations on strong profitability, as investment in growth and improved productivity translated to strong performance.

Negative Factors

Investor Sentiment

Howmet’s 2Q print left investors feeling uncertain, and like the story of Hephaestus was exiled from Olympus.

Submarket Demand

HWM did pare headcount at fasteners (automotive) and Forged Wheels to align with softer demand in those submarkets.

Howmet Aerospace Business Overview & Revenue Model

Company Description

Howmet Aerospace Inc. provides advanced engineered solutions for the aerospace and transportation industries in the United States, Japan, France, Germany, the United Kingdom, Mexico, Italy, Canada, Poland, China, and internationally. It operates through four segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. The Engine Products segment offers airfoils and seamless rolled rings primarily for aircraft engines and industrial gas turbines; and rotating parts, as well as structural parts. The Fastening Systems segment produces aerospace fastening systems, as well as commercial transportation, industrial, and other fasteners. The Engineered Structures segment provides titanium ingots and mill products for aerospace and defense applications; and aluminum and nickel forgings, and machined components and assemblies. The Forged Wheels segment offers forged aluminum wheels and related products for heavy-duty trucks and commercial transportation markets. The company was formerly known as Arconic Inc. The company was founded in 1888 and is based in Pittsburgh, Pennsylvania.

How the Company Makes Money

Howmet Aerospace generates revenue primarily through the sale of its aerospace and defense products. Key revenue streams include the production of aerospace fasteners, forged and cast components, and other engineered solutions that cater to major aircraft manufacturers and defense contractors. The company has established significant partnerships with leading industry players, which enables it to secure long-term contracts and maintain a steady flow of orders. Additionally, Howmet benefits from ongoing investments in research and development, focusing on new materials and manufacturing processes that meet the evolving needs of the aerospace sector, thereby enhancing its competitive edge and driving revenue growth.

Howmet Aerospace Financial Statement Overview

Summary

Howmet Aerospace demonstrates strong financial health with robust revenue growth, efficient operations, and solid cash flow management. The reduction in leverage and strong return on equity further enhance its financial stability. Minor concerns exist regarding the slight decline in gross profit margin, but the overall financial trajectory remains positive.

Income Statement

Howmet Aerospace has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 2.29%. The company maintains healthy margins, with a gross profit margin of 29.99% and a net profit margin of 18.09% in the TTM period. EBIT and EBITDA margins are also robust, indicating efficient operations. However, there is a slight decline in gross profit margin compared to the previous year, which could be a point of concern if the trend continues.

Balance Sheet

The balance sheet shows a solid equity position with a debt-to-equity ratio of 0.65, which is a significant improvement from previous years, indicating a reduction in leverage. Return on equity is strong at 29.58%, reflecting effective use of equity to generate profits. However, the equity ratio is moderate, suggesting room for improvement in asset financing through equity.

Cash Flow

The cash flow statement reflects positive trends, with a free cash flow growth rate of 19.7% in the TTM period. The operating cash flow to net income ratio of 0.89 indicates strong cash generation relative to net income. The free cash flow to net income ratio is healthy at 0.72, suggesting efficient conversion of earnings into cash. These metrics highlight the company's strong cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.72B	7.43B	6.64B	5.66B	4.97B	5.26B
Gross Profit	2.26B	2.05B	1.61B	1.35B	1.13B	1.14B
EBITDA	2.10B	1.84B	1.47B	1.10B	853.00M	831.00M
Net Income	1.40B	1.16B	765.00M	469.00M	258.00M	211.00M
Balance Sheet
Total Assets	11.05B	10.52B	10.43B	10.26B	10.22B	11.45B
Cash, Cash Equivalents and Short-Term Investments	545.00M	564.00M	610.00M	791.00M	720.00M	1.61B
Total Debt	3.26B	3.47B	3.83B	4.28B	4.35B	5.21B
Total Liabilities	6.00B	5.96B	6.39B	6.65B	6.71B	7.87B
Stockholders Equity	5.04B	4.55B	4.04B	3.60B	3.51B	3.58B
Cash Flow
Free Cash Flow	1.02B	977.00M	682.00M	540.00M	250.00M	-258.00M
Operating Cash Flow	1.42B	1.30B	901.00M	733.00M	449.00M	9.00M
Investing Cash Flow	-399.00M	-316.00M	-215.00M	-135.00M	107.00M	271.00M
Financing Cash Flow	-1.23B	-1.03B	-868.00M	-526.00M	-1.44B	-369.00M

Howmet Aerospace Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 175.99
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HWM, the sentiment is Negative. The current price of 175.99 is below the 20-day moving average (MA) of 183.72, below the 50-day MA of 179.77, and above the 200-day MA of 140.63, indicating a neutral trend. The MACD of -0.60 indicates Positive momentum. The RSI at 41.82 is Neutral, neither overbought nor oversold. The STOCH value of 36.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HWM.

Howmet Aerospace Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PH	78 Outperform	$95.24B	27.48	27.42%	0.90%	-0.40%	24.40%
CMI	77 Outperform	$55.78B	19.04	27.56%	1.80%	-1.30%	53.39%
HWM	75 Outperform	$70.95B	51.43	29.98%	0.23%	8.85%	51.50%
DOV	75 Outperform	$24.60B	10.82	16.72%	1.15%	-8.23%	54.92%
ITW	73 Outperform	$76.52B	23.03	109.06%	2.29%	-1.40%	11.65%
Sector *	66 Neutral	£2.68B	13.00	3.30%	3.25%	2.40%	-22.21%
OTIS	62 Neutral	$34.36B	23.14	-33.93%	1.85%	-0.09%	5.47%

Howmet Aerospace Corporate Events

Howmet Aerospace Grants CEO $45 Million Retention Award

On June 23, 2025, Howmet Aerospace Inc. amended its employment agreement with CEO John C. Plant, granting him a $45 million retention award in restricted stock units, set to vest in 2028. This amendment underscores the company’s commitment to retaining key leadership, potentially impacting its strategic stability and stakeholder confidence.

The most recent analyst rating on (HWM) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on Howmet Aerospace stock, see the HWM Stock Forecast page.

Howmet Aerospace Shareholders Approve Key Proposals

On May 28, 2025, Howmet Aerospace Inc. held its annual meeting of shareholders, where three key proposals were voted on. All nine director nominees were elected for a one-year term, PricewaterhouseCoopers LLP’s appointment as the independent accounting firm was ratified, and the advisory vote on executive compensation was approved, reflecting shareholder support for the company’s governance and financial strategies.

The most recent analyst rating on (HWM) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on Howmet Aerospace stock, see the HWM Stock Forecast page.