Howmet Aerospace (HWM)
NYSE:HWM
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Howmet Aerospace
(NYSE:HWM)
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Rating:83Outperform
Price Target:
$314.00
▲(22.80% Upside)
Action:Reiterated
Date:05/13/26
The score is driven primarily by very strong multi-year financial performance (growth, margin expansion, and solid free cash flow) and supportive earnings guidance. Technicals also indicate a strong uptrend, though momentum is nearing overbought levels. Offsetting these strengths, valuation is relatively expensive with a high P/E and minimal dividend yield.
Positive Factors
Revenue, Margin and FCF Strength
Sustained top-line expansion and material margin improvement reflect durable scale, pricing power on engineered products, and improved operational execution. Robust trailing‑12‑month free cash flow supports reinvestment, buybacks and debt reduction, providing long‑term financial optionality.
Negative Factors
Near‑term Leverage Increase from CAM Acquisition
The acquisition temporarily raises financial leverage and interest expense, constraining near‑term EPS accretion and cash allocation. Management must generate incremental cash flow and delever to restore prior cushion; a demand slowdown would magnify refinancing and execution risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue, Margin and FCF Strength
Sustained top-line expansion and material margin improvement reflect durable scale, pricing power on engineered products, and improved operational execution. Robust trailing‑12‑month free cash flow supports reinvestment, buybacks and debt reduction, providing long‑term financial optionality.
Read all positive factors
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 (HWM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$104.17B
Dividend Yield0.21%
Average Volume (3M)2.13M
Price to Earnings (P/E)39.8
Beta (1Y)1.28
Revenue Growth14.24%
EPS Growth40.49%
CountryUS
Employees23,930
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)4.35
Shares Outstanding400,107,480
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 Cap1.01
Enterprise Value/Revenue12.19
Enterprise Value/Gross Profit37.42
Enterprise Value/Ebitda39.52
Forecast
1Y Price Target
$300.62Price Target Upside17.57% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)4.95
Revenue Forecast (FY)$9.65B
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 Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational and financial picture: strong top-line growth (+19% YoY), robust margin expansion (EBITDA margin 32%, +320bps), record Q1 free cash flow, continued buybacks and a strategic M&A push that expands higher-growth Fasteners exposure. Management upgraded organic revenue growth guidance (ex-M&A) and provided solid full-year and Q2 guidance. Near-term negatives include an increase in leverage from the CAM acquisition (net leverage ~1.6x), limited 2026 EPS benefit from that deal due to interest expense, continued weakness in Commercial Transportation/Wheels volumes, capacity timing risks in Gas Turbines, and macro/geopolitical uncertainties (Iran/oil/inflation) that could affect demand. Overall, positives materially outweigh the manageable near-term risks.Positive Updates
Strong Q1 Financial Performance
Revenue $2.31B (+19% YoY), adjusted EBITDA $740M (+32% YoY), adjusted EPS $1.22 (+42% YoY). Adjusted EBITDA margin 32%, up 320 basis points YoY. Incremental flow-through of revenue to EBITDA ~49% YoY.
Negative Updates
Near-Term Leverage Increase and Interest Expense Drag
CAM acquisition (~$1.8B) increased net leverage to ~1.6x; weighted average cost of debt for the CAM transaction ~4.2%. Management notes EPS effect is insignificant in 2026 due to higher interest expense, with expected EPS accretion beginning in 2027.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Q1 Financial Performance
Revenue $2.31B (+19% YoY), adjusted EBITDA $740M (+32% YoY), adjusted EPS $1.22 (+42% YoY). Adjusted EBITDA margin 32%, up 320 basis points YoY. Incremental flow-through of revenue to EBITDA ~49% YoY.
Read all positive updates
Company Guidance
Howmet updated its 2026 outlook with a Q2 guide of revenue $2.40 billion ± $10 million, adjusted EBITDA $765 million ± $5 million and adjusted EPS $1.23 ± $0.01 (incremental flow‑through ~51%), and full‑year guidance of revenue $9.65 billion ± $75 million, adjusted EBITDA $3.06 billion ± $35 million, adjusted EPS $4.94 ± $0.06 and free cash flow $1.75 billion ± $50 million; management raised organic revenue growth (ex‑M&A) guidance from 10% to 14%. The company reiterated elevated investment for growth (Q1 CapEx $94 million; FY CapEx trending toward ~$500 million), expects to materially reduce post‑CAM net leverage (1.6x at close; pre‑CAM net debt/EBITDA was 0.9x), and highlighted cash and capital deployment metrics including Q1 share repurchases of $300 million (plus $150 million in April) with ~$1.05 billion remaining authorization, Q1 free cash flow $359 million, Q1 cash balance $2.4 billion (including $1.65 billion of CAM financing at ~4.2% blended cost), and that the CAM/Brunner/ Savannah transactions will add roughly $275 million of 2026 revenue and ~$60 million of EBITDA (with EPS benefit expected in 2027).Howmet Aerospace Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.62B | 8.25B | 7.43B | 6.64B | 5.66B | 4.97B |
| Gross Profit | 2.81B | 2.54B | 2.05B | 1.61B | 1.35B | 1.13B |
| EBITDA | 2.66B | 2.41B | 1.84B | 1.47B | 1.10B | 853.00M |
| Net Income | 1.74B | 1.51B | 1.16B | 765.00M | 469.00M | 258.00M |
Balance Sheet | ||||||
| Total Assets | 13.07B | 11.18B | 10.52B | 10.43B | 10.26B | 10.22B |
| Cash, Cash Equivalents and Short-Term Investments | 2.44B | 742.00M | 564.00M | 610.00M | 791.00M | 720.00M |
| Total Debt | 4.69B | 3.05B | 3.47B | 3.83B | 4.28B | 4.35B |
| Total Liabilities | 7.54B | 5.83B | 5.96B | 6.39B | 6.65B | 6.71B |
| Stockholders Equity | 5.52B | 5.35B | 4.55B | 4.04B | 3.60B | 3.51B |
Cash Flow | ||||||
| Free Cash Flow | 1.44B | 1.43B | 977.00M | 682.00M | 540.00M | 250.00M |
| Operating Cash Flow | 2.08B | 1.88B | 1.30B | 901.00M | 733.00M | 449.00M |
| Investing Cash Flow | -309.00M | -438.00M | -316.00M | -215.00M | -135.00M | 107.00M |
| Financing Cash Flow | 124.00M | -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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $104.17B | 39.83 | 33.12% | 0.21% | 14.24% | 40.49% | |
80 Outperform | $52.24B | 30.72 | 14.39% | 0.59% | 9.52% | 8.37% | |
77 Outperform | $108.78B | 31.24 | 24.69% | 0.79% | 6.03% | 4.26% | |
76 Outperform | $96.11B | 28.44 | 22.02% | 1.48% | 0.06% | -4.25% | |
71 Outperform | $74.52B | 29.72 | 12.11% | 1.58% | 4.03% | 3.51% | |
67 Neutral | $64.27B | 31.00 | -24.26% | ― | 13.26% | 8.24% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
HWM
Howmet Aerospace
260.35
94.49
56.97%
AME
Ametek
227.90
47.20
26.12%
CMI
Cummins
696.53
366.03
110.75%
EMR
Emerson Electric Company
133.05
15.38
13.07%
PH
Parker Hannifin
862.72
189.29
28.11%
TDG
Transdigm Group
1,148.97
-198.38
-14.72%
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.