Howmet Aerospace (HWM) AI Stock Analysis

• Market Cap: $81.82B
• Dividend Yield: 0.22%
• Average Volume (3M): 2.21M
• Price to Earnings (P/E): 57.1
• Beta (1Y): 1.30
• Revenue Growth: 9.70%
• EPS Growth: 36.28%
• Country: US
• Employees: 23,930
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.95
• Shares Outstanding: 402,062,260
• 10 Day Avg. Volume: 2,588,645
• 30 Day Avg. Volume: 2,209,287
• PEG Ratio: 0.73
• Price to Book (P/B): 9.80
• Price to Sales (P/S): 6.01
• P/FCF Ratio: 45.67
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 10.31
• Enterprise Value/Gross Profit: 34.33
• Enterprise Value/Ebitda: 36.72
• 1Y Price Target: $231.64
• Price Target Upside: 13.83% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 3.7
• Revenue Forecast (FY): $8.20B

• Rating: 67 Neutral
• Price Target: $210.00 ▲(3.20% Upside)

Howmet Aerospace's overall stock score is driven by its strong financial performance and positive earnings call sentiment. However, the high P/E ratio and mixed technical indicators suggest caution. The company's strategic financial maneuvers, such as debt refinancing, further bolster its position, but potential risks in commercial transportation and tariff uncertainties remain.

Positive Factors

Revenue Growth

Strong revenue growth in key segments indicates robust demand and market position, supporting long-term business expansion.

Cash Generation

Strong cash generation enhances financial flexibility, enabling strategic investments and shareholder returns.

Debt Refinancing

Refinancing improves financial performance by lowering interest costs, enhancing profitability and cash flow.

Negative Factors

Commercial Transportation Challenges

Declining revenue in commercial transportation could signal market challenges, affecting future growth in this segment.

Tariff Uncertainty

Tariff uncertainties can impact cost structures and pricing strategies, potentially affecting competitiveness and margins.

Leadership Transition

Leadership changes can introduce strategic shifts and execution risks, impacting company stability and strategic continuity.

Howmet Aerospace Business Overview & Revenue Model

Company Description

Howmet Aerospace Inc. (HWM) is a leading global provider of advanced engineered solutions for aerospace and transportation industries. The company operates primarily in two segments: Aerospace and Transportation, offering a wide range of products including aerospace fasteners, turbine engine components, and aluminum structures. With a strong focus on innovation and technology, Howmet Aerospace serves major aircraft manufacturers and suppliers, contributing to the performance and efficiency of modern aircraft.

How the Company Makes Money

Howmet Aerospace generates revenue through the manufacture and sale of its aerospace components and systems. The company's primary revenue streams include the production of titanium and aluminum precision components, fasteners, and engineered solutions for both commercial and defense markets. Key customers include major aerospace companies such as Boeing and Airbus, as well as defense contractors. Additionally, Howmet Aerospace benefits from long-term contracts and partnerships with these companies, ensuring a steady flow of income. The company's focus on research and development allows it to innovate and expand its product offerings, further enhancing its revenue potential in the competitive aerospace market.

Howmet Aerospace Financial Statement Overview

Summary

Howmet Aerospace exhibits strong financial health with consistent revenue and profit growth, efficient operations, and improved leverage. The company has demonstrated strong revenue growth with a 3.29% increase in TTM, supported by a solid net profit margin of 18.18%. However, the slight decline in gross profit margin suggests potential cost pressures.

Income Statement

Howmet Aerospace has demonstrated strong revenue growth with a 3.29% increase in TTM, supported by a solid net profit margin of 18.18%. The company has maintained healthy EBIT and EBITDA margins, indicating efficient operations and profitability. However, the slight decline in gross profit margin over time suggests potential cost pressures.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.62, reflecting a more balanced capital structure. Return on equity is robust at 29.70%, showcasing effective use of equity to generate profits. However, the equity ratio indicates moderate leverage, which could pose risks if not managed carefully.

Cash Flow

Howmet Aerospace has achieved a 3.93% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio of 1.05 suggests efficient conversion of earnings into cash. However, the free cash flow to net income ratio has slightly decreased, which may require monitoring.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.97B	7.43B	6.64B	5.66B	4.97B	5.26B
Gross Profit	2.40B	2.05B	1.61B	1.35B	1.13B	1.14B
EBITDA	2.24B	1.84B	1.47B	1.10B	853.00M	831.00M
Net Income	1.45B	1.16B	765.00M	469.00M	258.00M	211.00M
Balance Sheet
Total Assets	11.18B	10.52B	10.43B	10.26B	10.22B	11.45B
Cash, Cash Equivalents and Short-Term Investments	659.00M	564.00M	610.00M	791.00M	720.00M	1.61B
Total Debt	3.19B	3.47B	3.83B	4.28B	4.35B	5.21B
Total Liabilities	6.03B	5.96B	6.39B	6.65B	6.71B	7.87B
Stockholders Equity	5.14B	4.55B	4.04B	3.60B	3.51B	3.58B
Cash Flow
Free Cash Flow	1.06B	977.00M	682.00M	540.00M	250.00M	-258.00M
Operating Cash Flow	1.71B	1.30B	901.00M	733.00M	449.00M	9.00M
Investing Cash Flow	-423.00M	-316.00M	-215.00M	-135.00M	107.00M	271.00M
Financing Cash Flow	-1.10B	-1.03B	-868.00M	-526.00M	-1.44B	-369.00M

Howmet Aerospace Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 203.49
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HWM, the sentiment is Positive. The current price of 203.49 is above the 20-day moving average (MA) of 197.18, above the 50-day MA of 198.72, and above the 200-day MA of 173.25, indicating a bullish trend. The MACD of -0.56 indicates Negative momentum. The RSI at 57.59 is Neutral, neither overbought nor oversold. The STOCH value of 62.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HWM.

Howmet Aerospace Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AME	79 Outperform	$46.80B	32.07	14.63%	0.61%	3.67%	10.44%
PH	79 Outperform	$110.39B	31.16	27.30%	0.80%	0.22%	26.66%
EMR	76 Outperform	$74.71B	32.87	10.91%	1.61%	2.97%	18.14%
CMI	72 Outperform	$69.95B	26.30	23.84%	1.51%	-1.78%	27.35%
TDG	69 Neutral	$71.91B	39.79	―	―	11.33%	25.37%
HWM	67 Neutral	$81.82B	57.11	30.06%	0.22%	9.70%	36.28%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Howmet Aerospace Corporate Events

Howmet Aerospace Announces Preferred Stock Redemption Plan

On November 17, 2025, Howmet Aerospace announced its decision to redeem all outstanding shares of its $3.75 Cumulative Preferred Stock on December 17, 2025, at a redemption price of $100 per share plus accrued dividends. This move involves 546,024 shares and reflects the company’s strategic financial management, potentially impacting its financial structure and shareholder relations.

Howmet Aerospace Completes $500M Notes Offering

On November 12, 2025, Howmet Aerospace Inc. completed a public offering of $500 million in 4.550% Notes due 2032, aimed at refinancing existing debt. The company plans to use the proceeds to redeem its 5.90% Notes due 2027, which is expected to reduce annual interest expenses by approximately $14 million, thereby improving its financial performance.

Howmet Aerospace Announces $500 Million Notes Offering

On November 3, 2025, Howmet Aerospace announced the pricing of a $500 million offering of 4.550% Notes due 2032, with the offering expected to close on November 12, 2025. The proceeds, along with cash on hand, will be used to redeem approximately $625 million of 5.90% Notes due 2027, resulting in expected annualized interest savings of about $14 million, which could positively impact the company’s financial performance.

Howmet Aerospace Announces Senior Notes Offering

On November 3, 2025, Howmet Aerospace announced a proposed offering of senior notes, with the intention of using the proceeds to redeem approximately $625 million of its 5.90% Notes due 2027. The redemption is scheduled for December 3, 2025, and the company expects the total redemption price to be about $652 million, including accrued interest. This strategic financial move is aimed at optimizing the company’s debt structure and potentially improving its financial flexibility.

Howmet Aerospace Announces CFO Retirement and Successor

On October 20, 2025, Howmet Aerospace announced the retirement of Ken Giacobbe, its Executive Vice President and Chief Financial Officer, effective December 31, 2025, after 21 years of service. Patrick Winterlich, previously with Hexcel Corporation, will succeed him as CFO starting December 1, 2025. Winterlich’s compensation package includes a base salary, cash incentives, equity awards, and a sign-on bonus, reflecting Howmet’s commitment to securing experienced leadership to maintain its competitive position in the aerospace industry.