Howmet Aerospace (HWM) AI Stock Analysis

• Market Cap: $77.61B
• Dividend Yield: 0.21%
• Average Volume (3M): 1.94M
• Price to Earnings (P/E): 56.3
• Beta (1Y): 1.32
• Revenue Growth: 8.85%
• EPS Growth: 51.50%
• Country: US
• Employees: 23,930
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.91
• Shares Outstanding: 403,126,300
• 10 Day Avg. Volume: 1,429,191
• 30 Day Avg. Volume: 1,936,447
• 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: 1.01
• Enterprise Value/Revenue: 10.17
• Enterprise Value/Gross Profit: 34.78
• Enterprise Value/Ebitda: 37.37
• 1Y Price Target: $209.00
• Price Target Upside: 5.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 13

• Rating: 78 Outperform
• Price Target: $225.00 ▲(14.11% Upside)

Howmet Aerospace's strong financial performance and positive earnings call are the most significant factors driving the stock score. Technical analysis supports a bullish outlook, although the high P/E ratio suggests potential overvaluation. The company's increased guidance and strategic focus on high-margin areas further enhance its attractiveness.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Howmet's products and effective market penetration, supporting long-term business expansion.

Cash Flow Management

Effective cash flow management enhances financial flexibility, allowing for shareholder returns and strategic investments, bolstering future growth.

Market Expansion

Expanding in defense and industrial markets diversifies revenue streams and reduces reliance on any single sector, strengthening long-term stability.

Negative Factors

Commercial Transportation Challenges

Declines in commercial transportation revenue highlight sector-specific challenges, potentially impacting overall growth if trends persist.

Supply Chain Risks

Supply chain constraints can disrupt production and delivery schedules, affecting Howmet's ability to meet demand and maintain margins.

Gross Profit Margin Decline

A declining gross profit margin may indicate rising costs or pricing pressures, potentially impacting profitability if not addressed.

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 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 overall, the company's 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: Positive
• Last Price: 197.18
• 50DMA: Positive
• 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 Positive. The current price of 197.18 is above the 20-day moving average (MA) of 191.52, above the 50-day MA of 184.53, and above the 200-day MA of 158.18, indicating a neutral trend. The MACD of 1.76 indicates Positive momentum. The RSI at 51.97 is Neutral, neither overbought nor oversold. The STOCH value of 70.68 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
HWM	78 Outperform	$77.61B	56.26	29.98%	0.21%	8.85%	51.50%
AME	75 Outperform	$43.49B	30.37	14.64%	0.64%	2.28%	7.94%
PH	75 Outperform	$93.64B	27.29	27.42%	0.93%	-0.40%	24.40%
EMR	72 Outperform	$73.36B	28.00	10.86%	1.60%	4.78%	59.68%
CMI	71 Outperform	$57.04B	19.47	27.56%	1.83%	-1.30%	53.39%
TDG	67 Neutral	$73.35B	43.21	―	―	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 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.

Howmet Aerospace Reports Strong Q2 Earnings Growth

The recent earnings call for Howmet Aerospace Inc. painted a picture of robust financial health and growth. The general sentiment was positive, with the company showcasing significant revenue growth, improved EBITDA margins, and increased dividends. However, challenges were noted in the commercial transportation sector and aerospace destocking, which slightly tempered the overall enthusiasm.

Howmet Aerospace Reports Record Q2 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.