Howmet Aerospace (HWM)
NYSE:HWM
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Howmet Aerospace
(NYSE:HWM)
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Rating:74Outperform
Price Target:
$261.00
▲(2.08% Upside)
Action:ReiteratedDate:04/07/26
Score is driven primarily by strong financial performance (margin and cash-flow expansion with deleveraging) and a constructive earnings outlook. The main offsets are elevated valuation (high P/E, low yield) and currently softer near-term technical momentum; corporate events add strategic upside but introduce integration and leverage risk.
Positive Factors
Robust free cash flow generation
Consistently strong cash generation (operating cash flow ~ $1.88B and FCF ~$1.43B in 2025) provides durable internal funding for capex, dividends, buybacks and debt repayment. This improves financial flexibility across cycles and supports strategic investment without immediate reliance on markets.
Negative Factors
Dependence on aircraft OEM build rates
Significant revenue and EBITDA exposure to OEM production assumptions creates persistent execution risk: slower-than-expected Boeing/Airbus ramps or engine OEM constraints would reduce aftermarket and new-build demand, pressuring revenue, margins and cash generation for multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Robust free cash flow generation
Consistently strong cash generation (operating cash flow ~ $1.88B and FCF ~$1.43B in 2025) provides durable internal funding for capex, dividends, buybacks and debt repayment. This improves financial flexibility across cycles and supports strategic investment without immediate reliance on markets.
Read all positive factors
Howmet Aerospace (HWM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$101.85B
Dividend Yield0.21%
Average Volume (3M)2.13M
Price to Earnings (P/E)54.9
Beta (1Y)1.29
Revenue Growth9.70%
EPS Growth36.28%
CountryUS
Employees23,930
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.05
Shares Outstanding400,940,060
10 Day Avg. Volume1,743,179
30 Day Avg. Volume2,129,722
Financial Highlights & Ratios
PEG Ratio1.73
Price to Book (P/B)15.47
Price to Sales (P/S)10.04
P/FCF Ratio57.88
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue12.32
Enterprise Value/Gross Profit40.07
Enterprise Value/Ebitda42.64
Forecast
1Y Price Target
$277.93Price Target Upside8.70% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
EPS Forecast (FY)4.64
Revenue Forecast (FY)$9.36B
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 t...
How the Company Makes Money
Howmet Aerospace generates revenue primarily by manufacturing and selling proprietary, engineered components and systems that are designed into customer platforms where performance, certification, and switching costs are high. Key revenue streams ...
Howmet Aerospace Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Segment
Highlights profitability across different business segments, giving insight into which areas are driving earnings and how effectively each segment is managed.
Highlights profitability across different business segments, giving insight into which areas are driving earnings and how effectively each segment is managed.
Data provided by:
The Fly
The FlyHowmet Aerospace Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive performance story: record revenue, EBITDA, margins, EPS and free cash flow with accelerating spares and gas turbine growth, meaningful debt reduction, active capital deployment (buybacks/dividends) and strategic M&A. Notable challenges include weakness in wheels/commercial transportation volumes, near-term margin drag from hiring and capex ramp, input-cost/tariff pass-throughs and dependence on OEM aircraft build rates. Overall, the positives and momentum materially outweigh the manageable headwinds.Positive Updates
Strong Top-Line Growth
Q4 revenue of $2.17B, up 15% YoY; full year revenue up 11% to a record level.
Negative Updates
Commercial Transportation and Wheels Volume Weakness
Commercial transportation revenue down 5% for the full year; wheels volumes down 10% in Q4 and down 13% for the full year. Forged Wheels full year revenue down 1%.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Top-Line Growth
Q4 revenue of $2.17B, up 15% YoY; full year revenue up 11% to a record level.
Read all positive updates
Company Guidance
Howmet guided Q1 2026 revenue of $2.235 billion (±$10 million), adjusted EBITDA of $685 million (±$5 million) and adjusted EPS of $1.10 (±$0.01); for full‑year 2026 (excluding the CAM acquisition) management guided revenue of $9.1 billion (±$100 million), adjusted EBITDA of $2.76 billion (±$50 million), adjusted EPS of $4.45 (±$0.01) and free cash flow of $1.6 billion (±$50 million), with EBITDA incremental for the year cited at roughly the “early 40%” range; they said Q1 revenue is about 15% year‑over‑year above the 2025 average, noted the guide excludes CAM, indicated a 2026 capex midpoint of roughly $470 million (with upside possible), and disclosed the aircraft build‑rate assumptions behind the outlook (Boeing 737 ~40/mo with a 42 daily average, 787 7→8/mo; Airbus A320 60/mo; A350 6/mo).Howmet Aerospace Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
78
Positive
Cash Flow
84
Very Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 8.25B | 7.43B | 6.64B | 5.66B | 4.97B |
| Gross Profit | 2.54B | 2.05B | 1.61B | 1.35B | 1.13B |
| EBITDA | 2.41B | 1.84B | 1.47B | 1.10B | 853.00M |
| Net Income | 1.51B | 1.16B | 765.00M | 469.00M | 258.00M |
Balance Sheet | |||||
| Total Assets | 11.18B | 10.52B | 10.43B | 10.26B | 10.22B |
| Cash, Cash Equivalents and Short-Term Investments | 742.00M | 564.00M | 610.00M | 791.00M | 720.00M |
| Total Debt | 3.05B | 3.47B | 3.83B | 4.28B | 4.35B |
| Total Liabilities | 5.83B | 5.96B | 6.39B | 6.65B | 6.71B |
| Stockholders Equity | 5.35B | 4.55B | 4.04B | 3.60B | 3.51B |
Cash Flow | |||||
| Free Cash Flow | 1.43B | 977.00M | 682.00M | 540.00M | 250.00M |
| Operating Cash Flow | 1.88B | 1.30B | 901.00M | 733.00M | 449.00M |
| Investing Cash Flow | -438.00M | -316.00M | -215.00M | -135.00M | 107.00M |
| Financing Cash Flow | -1.27B | -1.03B | -868.00M | -526.00M | -1.44B |
Howmet Aerospace Technical Analysis
Positive
255.69
Price Trends
244.71
Positive
225.90
Positive
206.94
Positive
Market Momentum
3.79
Negative
58.63
Neutral
74.15
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 255.69 is above the 20-day moving average (MA) of 241.64, above the 50-day MA of 244.71, and above the 200-day MA of 206.94, indicating a bullish trend. The MACD of 3.79 indicates Negative momentum. The RSI at 58.63 is Neutral, neither overbought nor oversold. The STOCH value of 74.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HWM.
Howmet Aerospace Risk Analysis
Howmet Aerospace disclosed 28 risk factors in its most recent earnings report. Howmet Aerospace reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Howmet Aerospace Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $121.64B | 32.82 | 25.65% | 0.79% | 0.22% | 26.66% | |
79 Outperform | $52.71B | 31.97 | 14.26% | 0.59% | 3.67% | 10.44% | |
74 Outperform | $101.85B | 54.93 | 29.67% | 0.21% | 9.70% | 36.28% | |
69 Neutral | $78.95B | 30.81 | 11.60% | 1.58% | 2.97% | 18.14% | |
67 Neutral | $83.10B | 24.76 | 24.13% | 1.48% | -1.78% | 27.35% | |
65 Neutral | $71.99B | 49.35 | -26.55% | ― | 11.33% | 25.37% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
HWM
Howmet Aerospace
255.62
131.63
106.15%
AME
Ametek
236.82
78.20
49.30%
CMI
Cummins
636.61
362.60
132.33%
EMR
Emerson Electric Company
146.77
48.61
49.53%
PH
Parker Hannifin
996.44
434.98
77.47%
TDG
Transdigm Group
1,274.62
50.87
4.16%
Howmet Aerospace Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Howmet Aerospace Issues 2025 ESG Transparency Report
Neutral
Apr 6, 2026
On April 6, 2026, Howmet Aerospace Inc. released its 2025 Environmental, Social and Governance Report on its website, outlining the company’s ESG commitments and performance over the period. The publication underscores Howmet’s effort ...
Business Operations and StrategyM&A Transactions
Howmet Aerospace Completes Acquisition of Consolidated Aerospace Manufacturing
Positive
Apr 6, 2026
On April 6, 2026, Howmet Aerospace Inc. completed the acquisition of Consolidated Aerospace Manufacturing, LLC from Stanley Black Decker, Inc. for approximately $1.8 billion in cash, subject to customary adjustments. The deal expands Howmet Aeros...
Business Operations and Strategy
Howmet Aerospace Highlights Strategy at Technology and Markets Day
Positive
Mar 10, 2026
On March 10, 2026, Howmet Aerospace Inc. hosted its Technology and Markets Day and posted the accompanying presentation on its website, outlining its strategic focus and market views. The event emphasized concentrating resources on core strengths,...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Howmet Aerospace Issues Senior Notes to Fund Acquisition
Positive
Mar 4, 2026
On March 3, 2026, Howmet Aerospace closed an underwritten public offering of $1.2 billion in senior notes, issuing $400 million of 3.750% notes due 2028, $300 million of 3.900% notes due 2029 and $500 million of 4.750% notes due 2036 under its exi...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Howmet Aerospace Prices $1.2 Billion Debt for Acquisition
Positive
Feb 17, 2026
On February 17, 2026, Howmet Aerospace Inc. announced the pricing of an underwritten public debt offering totaling $1.2 billion, comprising $400 million of 3.750% notes due 2028, $300 million of 3.900% notes due 2029, and $500 million of 4.750% no...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Howmet Aerospace Plans Debt-Financed Acquisition of CAM Unit
Positive
Feb 17, 2026
On February 17, 2026, Howmet Aerospace Inc. announced a proposed offering of senior notes, with pricing and terms subject to market conditions and other factors. The company plans to use the proceeds, along with $600 million in commercial paper or...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.