Howmet Aerospace (HWM) AI Stock Analysis

• Market Cap: $83.09B
• Dividend Yield: 0.21%
• Average Volume (3M): 2.01M
• Price to Earnings (P/E): 58.0
• Beta (1Y): 1.29
• 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: 2,474,572
• 30 Day Avg. Volume: 2,013,150
• 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: 0.99
• Enterprise Value/Revenue: 10.31
• Enterprise Value/Gross Profit: 34.33
• Enterprise Value/Ebitda: 36.72
• 1Y Price Target: $229.38
• Price Target Upside: 10.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 3.67
• Revenue Forecast (FY): $8.18B

• Rating: 77 Outperform
• Price Target: $234.00 ▲(13.23% Upside)

Howmet Aerospace's strong financial performance and positive earnings call sentiment are the most significant factors driving the stock score. The company's robust revenue growth and strategic initiatives, such as share buybacks and debt reduction, enhance its financial position. However, the high P/E ratio suggests overvaluation, and the technical indicators hint at a potential pullback, which slightly offsets the overall positive outlook.

Positive Factors

Revenue Growth

Strong revenue growth across key segments indicates robust demand and effective market positioning, supporting long-term financial stability.

Cash Flow and Share Buybacks

Strong cash flow and strategic share buybacks enhance shareholder value and demonstrate efficient capital management, reinforcing financial health.

Debt Reduction

Early debt repayment and reduced leverage improve financial flexibility and risk profile, supporting long-term operational stability.

Negative Factors

Gross Profit Margin Decline

Declining gross profit margins could indicate rising costs, which may pressure profitability if not managed effectively over time.

Challenges in Commercial Transportation

Decreased revenue in commercial transportation highlights sector-specific challenges that could impact future growth in this segment.

Tariff and Cost Uncertainty

Tariff-related uncertainties may lead to cost volatility, impacting margins and operational planning in affected sectors.

Howmet Aerospace Business Overview & Revenue Model

Company Description

Howmet Aerospace Inc. (HWM) is a global leader in advanced aerospace and defense technologies, specializing in innovative engineered solutions for various sectors, including commercial aerospace, defense, and industrial markets. The company designs and manufactures high-performance products such as aerospace fasteners, castings, and engineered components, primarily focusing on lightweight materials and advanced manufacturing techniques to enhance fuel efficiency and performance in aircraft and other applications.

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 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: 206.66
• 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 206.66 is above the 20-day moving average (MA) of 198.93, above the 50-day MA of 191.60, and above the 200-day MA of 163.13, indicating a bullish trend. The MACD of 4.52 indicates Negative momentum. The RSI at 63.97 is Neutral, neither overbought nor oversold. The STOCH value of 54.42 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	78 Outperform	$45.19B	30.96	14.63%	0.61%	3.67%	10.44%
HWM	77 Outperform	$83.09B	58.00	30.06%	0.21%	9.70%	36.28%
PH	77 Outperform	$106.80B	30.07	27.30%	0.83%	0.22%	26.66%
EMR	73 Outperform	$72.88B	32.00	10.91%	1.59%	2.97%	―
CMI	72 Outperform	$65.34B	24.57	23.84%	1.58%	-1.78%	27.35%
TDG	70 Outperform	$72.40B	42.65	―	―	12.86%	11.44%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Howmet Aerospace Corporate Events

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.

The most recent analyst rating on (HWM) stock is a Buy with a $240.00 price target. To see the full list of analyst forecasts on Howmet Aerospace stock, see the HWM Stock Forecast page.

Howmet Aerospace’s Earnings Call Highlights Robust Growth

Howmet Aerospace Inc. recently held its earnings call, reflecting a positive sentiment driven by strong financial performance and a promising market outlook. The company showcased robust revenue growth and strategic positioning, despite facing challenges in commercial transportation and tariff uncertainties.

Howmet Aerospace Reports Strong Q3 2025 Results

Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace and transportation industries, specializing in jet engine components, aerospace fastening systems, and airframe structural components.

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.

The most recent analyst rating on (HWM) stock is a Buy with a $225.00 price target. To see the full list of analyst forecasts on Howmet Aerospace stock, see the HWM Stock Forecast page.

Howmet Aerospace’s Chief Legal Officer Resigns

On August 15, 2025, Lola F. Lin, Executive Vice President, Chief Legal and Compliance Officer and Secretary of Howmet Aerospace, announced her resignation effective September 5, 2025, to pursue another opportunity. The Legal and Compliance teams will temporarily report to Neil E. Marchuk, Executive Vice President and Chief Administrative Officer, until a successor is appointed.

The most recent analyst rating on (HWM) stock is a Hold with a $189.00 price target. To see the full list of analyst forecasts on Howmet Aerospace stock, see the HWM Stock Forecast page.