A Business at a Glance
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Howmet Aerospace Inc.
HWM
$117.4B
Mkt Cap
$289.26
+0.76%
Howmet Aerospace Inc. (HWM) has a current P/E ratio of 78.0, compared to its historical median P/E of 46.2. The stock is currently considered Expensive based on its historical valuation range.
Howmet Aerospace Inc. (HWM) has a 5-year average return on invested capital (ROIC) of 14.5%. This indicates solid capital allocation.
Howmet Aerospace Inc. (HWM) has a market capitalization of $116.0B. It is classified as a large-cap stock.
Yes, Howmet Aerospace Inc. (HWM) pays a dividend with a trailing twelve-month yield of 0.16%. The company also returns capital through share buybacks, with a buyback yield of 0.75%.
Based on historical P/E analysis, Howmet Aerospace Inc. (HWM) appears expensive. The current P/E of 78.0 is 69% above its historical median of 46.2. The estimated fair value CAGR (P/E method) is 33.5%.
Howmet Aerospace Inc. (HWM) operates in the Rolling Drawing & Extruding Of Nonferrous Metals industry, within the Materials sector.
Howmet Aerospace Inc. (HWM) reported annual revenue of $8.3 billion in its most recent fiscal year, based on SEC EDGAR filings.
Howmet Aerospace is a leading global provider of advanced engineered solutions for the aerospace and transportation industries, operating in 19 countries with North America and Europe representing 72% and 22% of 2025 sales respectively. The company operates through four reportable segments—Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels—producing mission-critical components including investment castings for jet engines and industrial gas turbines, seamless rolled rings, aerospace fastening systems, titanium ingots and mill products, and forged aluminum commercial vehicle wheels. Howmet's business model is characterized by direct sales to original equipment manufacturers and aftermarket customers, with aerospace (commercial and defense) representing approximately 70% of 2025 revenue, commercial transportation 15%, gas turbines 11%, and other markets 4%. The company's competitive moat derives from its precision engineering, materials science expertise, advanced manufacturing processes, and vertical integration capabilities that enable it to produce more than 90% of structural and rotating aero engine components. Unit economics are driven by long-cycle aerospace programs with substantial backlogs, recurring aftermarket spares demand, and capital-intensive manufacturing requiring significant ongoing investment in new facilities and equipment. Howmet serves major customers including RTX Corporation and GE Aerospace, each representing approximately 11% of third-party sales in 2025, and benefits from secular tailwinds including demand for fuel-efficient aircraft, defense spending, and electricity generation capacity expansion driven by data center buildout.
【Strong aerospace-led growth trajectory】 Management expects continued robust growth across commercial aerospace, defense aerospace, and gas turbines throughout 2026 and beyond, with commercial aerospace driven by accelerating engine spares demand and record aircraft backlogs extending into the next decade, while defense aerospace benefits from F-35 production and spares growth. The company anticipates that its gas turbines base business of approximately $1 billion should double in revenue to $2 billion over the next three to five years, supported by data center buildout and electricity generation demand, with new 2027 emissions regulations expected to help demand in the second half of 2026. Howmet is investing heavily in capacity expansion, including new manufacturing plants and equipment coming online in late 2025 and mid-2026, with capital expenditures expected to remain at elevated levels in 2026 and 2027 while maintaining its target of converting 90% of net income into free cash flow. The company closed the Consolidated Aerospace Manufacturing acquisition in April 2026 for approximately $1.8 billion and completed the Brunner Manufacturing acquisition in February 2026, both expected to enhance fastening systems capabilities and support organic growth initiatives. Management remains cautious regarding macroeconomic uncertainties and the potential effects of geopolitical developments, though the large aircraft backlog and strong spares backlogs are expected to underpin current build rates and revenue growth.
No forward guidance provided.
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 8.6B | 8.3B | 7.4B | 6.6B | 5.7B | 5.0B |
| Net Income | 1.7B | 1.5B | 1.2B | 763M | 467M | 256M |
| EPS | $4.33 | $3.71 | $2.81 | $1.83 | $1.11 | $0.59 |
| Free Cash Flow | 1.7B | 1.4B | 977M | 682M | 540M | 250M |
| ROIC | 24.6% | 22.2% | 18.7% | 13.3% | 10.1% | 8.2% |
| Gross Margin | - | 34.2% | 31.1% | 28.1% | 27.5% | 27.7% |
| Debt/Equity | 0.85 | 0.60 | 0.76 | 0.95 | 1.19 | 1.24 |
| Dividends/Share | $0.47 | $0.44 | $0.26 | $0.17 | $0.10 | $0.04 |
| Operating Income | 2.3B | 2.0B | 1.6B | 1.2B | 919M | 748M |
| Operating Margin | 26.7% | 24.8% | 22.0% | 18.1% | 16.2% | 15.0% |
| ROE | 31.6% | 30.4% | 26.8% | 20.0% | 13.1% | 7.2% |
| Shares Outstanding | 401M | 406M | 410M | 417M | 421M | 434M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 23.9B | 12.4B | 12.4B | 13.0B | 6.8B | 7.1B | 5.3B | 5.0B | 5.7B | 6.6B | 7.4B | 8.3B | 8.6B |
| Gross Margin | 19.9% | 18.6% | 25.0% | 18.1% | N/A | 26.5% | 26.3% | 27.7% | 27.5% | 28.1% | 31.1% | 34.2% | N/A |
| R&D | 218M | 169M | 130M | 109M | 41M | 28M | 17M | 17M | 32M | 36M | 33M | 37M | 38M |
| SG&A | 995M | 765M | 924M | 715M | 371M | 400M | 277M | 251M | 288M | 333M | 347M | 370M | 396M |
| EBIT | 1.0B | 421M | 954M | 480M | 775M | 579M | 626M | 748M | 919M | 1.2B | 1.6B | 2.0B | 2.3B |
| Op. Margin | 4.4% | 3.4% | 7.7% | 3.7% | 11.4% | 8.2% | 11.9% | 15.0% | 16.2% | 18.1% | 22.0% | 24.8% | 26.7% |
| Net Income | 247M | -391M | -1.0B | -127M | 640M | 468M | 259M | 256M | 467M | 763M | 1.2B | 1.5B | 1.7B |
| Net Margin | 1.0% | -3.1% | -8.1% | -1.0% | 9.4% | 6.6% | 4.9% | 5.1% | 8.2% | 11.5% | 15.5% | 18.3% | 20.2% |
| Non-Recurring | 2.9B | 1.2B | 144M | 1.4B | 153M | 574M | 176M | 85M | 39M | -5.0M | -13M | -21M | -88M |
| Returns on Capital | |||||||||||||
| ROIC | 3.6% | 1.4% | 3.8% | 2.8% | 4.7% | 3.4% | 7.1% | 8.2% | 10.1% | 13.3% | 18.7% | 22.2% | 24.6% |
| ROE | 2.0% | -3.2% | -11.8% | -2.5% | 12.2% | 9.2% | 6.3% | 7.2% | 13.1% | 20.0% | 26.8% | 30.4% | 31.6% |
| ROA | 0.7% | -1.1% | -3.6% | -0.7% | 3.4% | 2.6% | 1.8% | 2.4% | 4.6% | 7.4% | 11.0% | 13.9% | 13.3% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.7B | 1.6B | 95M | -39M | 217M | 461M | 9.0M | 449M | 733M | 901M | 1.3B | 1.9B | 2.1B |
| Free Cash Flow | 455M | 402M | -1.0B | -635M | -551M | -180M | -258M | 250M | 540M | 682M | 977M | 1.4B | 1.7B |
| Owner Earnings | 215M | 210M | -1.1B | -644M | -399M | -144M | -375M | 139M | 414M | 579M | 958M | 1.5B | 1.7B |
| CapEx | 1.2B | 1.2B | 1.1B | 596M | 768M | 641M | 267M | 199M | 193M | 219M | 321M | 453M | 428M |
| Maint. CapEx | 1.4B | 1.3B | 1.1B | 551M | 576M | 536M | 338M | 270M | 265M | 272M | 277M | 283M | 288M |
| Growth CapEx | 0 | 0 | 0 | 45M | 192M | 105M | 0 | 0 | 0 | 0 | 44M | 170M | 140M |
| D&A | 1.4B | 1.3B | 1.1B | 551M | 576M | 536M | 338M | 270M | 265M | 272M | 277M | 283M | 288M |
| CapEx/OCF | N/A | N/A | 129.3% | N/A | 353.9% | 139.0% | 2966.7% | 44.3% | 26.3% | 24.3% | 24.7% | 24.0% | 20.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 161M | 223M | 228M | 162M | 119M | 57M | 11M | 19M | 44M | 73M | 109M | 181M | 187M |
| Dividend Yield | N/A | N/A | 3.6% | 1.9% | 1.5% | 0.7% | 0.1% | 0.1% | 0.3% | 0.4% | 0.3% | 0.3% | 0.2% |
| Share Buybacks | 0 | 0 | 0 | 0 | 0 | 1.1B | 73M | 430M | 400M | 250M | 500M | 700M | 875M |
| Buyback Yield | N/A | N/A | N/A | N/A | N/A | 11.3% | 0.5% | 3.1% | 2.5% | 1.1% | 1.1% | 0.8% | 0.8% |
| Stock-Based Comp | 87M | 92M | 76M | 54M | 40M | 69M | 46M | 40M | 54M | 50M | 63M | 73M | 137M |
| Debt Repayment | 1.7B | 2.0B | 2.7B | 1.6B | 1.1B | 806M | 2.0B | 1.5B | 69M | 876M | 865M | 765M | 765M |
| Balance Sheet | |||||||||||||
| Net Debt | 5.1B | 6.1B | 6.2B | 4.7B | 4.5B | 5.5B | 4.0B | 3.6B | 3.5B | 3.2B | 2.9B | 2.5B | 2.2B |
| Cash & Equiv. | 1.9B | 1.4B | 1.9B | 2.1B | 2.3B | 1.6B | 1.6B | 720M | 791M | 610M | 564M | 742M | 2.4B |
| Long-Term Debt | 8.8B | 8.8B | 8.0B | 6.8B | 5.9B | 4.9B | 4.7B | 4.2B | 4.2B | 3.5B | 3.3B | 2.9B | 4.0B |
| Debt/Equity | 0.72 | 0.73 | 1.58 | 1.39 | 1.21 | 1.55 | 1.56 | 1.24 | 1.19 | 0.95 | 0.76 | 0.60 | 0.85 |
| Interest Coverage | 2.2 | 0.9 | 1.9 | 1.0 | 2.1 | 1.7 | 2.0 | 2.9 | 4.0 | 5.5 | 8.4 | 11.6 | 11.6 |
| Equity | 12.3B | 12.0B | 5.1B | 4.9B | 5.6B | 4.6B | 3.6B | 3.5B | 3.6B | 4.0B | 4.6B | 5.4B | 5.5B |
| Total Assets | 37.4B | 36.5B | 20.0B | 18.7B | 18.7B | 17.6B | 11.4B | 10.2B | 10.3B | 10.4B | 10.5B | 11.2B | 13.1B |
| Total Liabilities | 22.6B | 22.3B | 14.9B | 13.8B | 13.1B | 13.0B | 7.9B | 6.7B | 6.7B | 6.4B | 6.0B | 5.8B | 7.5B |
| Intangibles | 1.6B | 2.1B | 988M | 987M | 919M | 599M | 571M | 549M | 521M | 505M | 475M | 457M | 451M |
| Retained Earnings | 9.4B | 8.8B | -1.0B | -1.2B | -358M | 113M | 364M | 603M | 1.0B | 1.7B | 2.8B | 4.1B | 4.6B |
| Working Capital | 2.4B | 2.7B | 3.1B | 3.6B | 3.1B | 1.7B | 2.0B | 1.5B | 1.7B | 1.5B | 1.8B | 2.0B | 3.3B |
| Current Assets | 7.8B | 8.0B | 5.9B | 6.4B | 6.6B | 5.8B | 3.7B | 2.7B | 3.1B | 3.3B | 3.4B | 3.8B | 5.7B |
| Current Liabilities | 5.5B | 5.2B | 2.7B | 2.8B | 3.5B | 4.1B | 1.7B | 1.3B | 1.5B | 1.8B | 1.5B | 1.8B | 2.3B |
| Per Share Data | |||||||||||||
| EPS | 0.21 | -0.93 | -2.31 | -0.28 | 1.30 | 1.03 | 0.48 | 0.59 | 1.11 | 1.83 | 2.81 | 3.71 | 4.33 |
| Owner EPS | 0.18 | 0.50 | -2.55 | -1.42 | -0.81 | -0.32 | -0.69 | 0.32 | 0.98 | 1.39 | 2.33 | 3.76 | 4.14 |
| Book Value | 10.46 | 28.65 | 11.70 | 10.83 | 11.32 | 10.10 | 6.63 | 8.08 | 8.56 | 9.68 | 11.10 | 13.19 | 13.77 |
| Cash Flow/Share | 1.42 | 3.76 | 0.22 | -0.09 | 0.44 | 1.01 | 0.02 | 1.03 | 1.74 | 2.16 | 3.16 | 4.64 | 5.06 |
| Dividends/Share | 0.12 | 0.12 | 0.36 | 0.24 | 0.24 | 0.12 | 0.02 | 0.04 | 0.10 | 0.17 | 0.26 | 0.44 | 0.47 |
| Shares Out. | 1.2B | 420.4M | 437.2M | 453.6M | 492.3M | 454.4M | 539.6M | 433.9M | 420.7M | 416.9M | 410.3M | 405.9M | 401.0M |
| Valuation | |||||||||||||
| P/E Ratio | N/A | N/A | N/A | N/A | 9.7 | 87.1 | 57.0 | 52.9 | 34.5 | 29.4 | 39.5 | 56.9 | 66.8 |
| P/FCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 54.2 | 29.9 | 32.9 | 46.6 | 59.9 | 70.0 |
| EV/EBIT | N/A | N/A | 12.9 | 16.6 | 6.3 | 24.2 | 27.3 | 22.0 | 20.4 | 20.9 | 29.2 | 42.7 | 51.3 |
| Price/Book | N/A | N/A | 1.2 | 1.1 | 1.1 | 2.2 | 4.2 | 3.9 | 4.5 | 5.6 | 10.0 | 16.0 | 21.0 |
| Price/Sales | N/A | N/A | 0.5 | 0.4 | 0.6 | 1.1 | 1.8 | 2.7 | 2.6 | 2.9 | 4.6 | 8.1 | 13.5 |
| FCF Yield | N/A | N/A | -16.6% | -11.7% | -8.9% | -1.8% | -1.7% | 1.8% | 3.3% | 3.0% | 2.1% | 1.7% | 1.4% |
| Market Cap | N/A | N/A | 6.2B | 5.4B | 6.2B | 10.2B | 14.9B | 13.7B | 16.1B | 22.4B | 45.5B | 85.7B | 116.0B |
| Avg. Price | N/A | N/A | 14.46 | 18.89 | 16.26 | 17.98 | 17.89 | 30.83 | 34.50 | 45.44 | 83.81 | 165.03 | 289.26 |
| Year-End Price | N/A | N/A | 14.16 | 20.52 | 12.59 | 23.53 | 27.34 | 31.24 | 38.33 | 53.77 | 110.87 | 211.10 | 289.26 |
Howmet Aerospace Inc. passes 5 of 9 quality checks, suggesting mixed fundamentals.
Howmet Aerospace Inc. trades at 78.0x trailing earnings, compared to its 15-year median P/E of 46.2x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 81.0x vs a median of 46.6x. The company's 5-year average ROIC is 14.5% with a gross margin of 29.7%. Total shareholder yield (dividends + buybacks) is 0.9%. At current prices, the estimated annualized return to fair value is +65.5%.
Howmet Aerospace Inc. (HWM) has a net profit margin of 18.3%. This is a healthy margin.
Howmet Aerospace Inc. (HWM) generated $1.4 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Howmet Aerospace Inc. (HWM) has a debt-to-equity ratio of 0.60. This indicates moderate leverage.
Howmet Aerospace Inc. (HWM) reported earnings per share (EPS) of $3.71 in its most recent fiscal year.
Howmet Aerospace Inc. (HWM) has a return on equity (ROE) of 30.4%. This indicates the company generates strong returns for shareholders.
Howmet Aerospace Inc. (HWM) has a 5-year average gross margin of 29.7%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 19 years of financial data for Howmet Aerospace Inc. (HWM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Howmet Aerospace Inc. (HWM) has a book value per share of $13.19, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued robust growth across commercial aerospace, defense aerospace, and gas turbines throughout 2026 and beyond, with commercial aerospace driven by accelerating engine spares demand and record aircraft backlogs extending into the next decade, while defense aerospace benefits from F-35 production and spares growth. The company anticipates that its gas turbines base business of approximately $1 billion should double in revenue to $2 billion over the next three to five years, supported by data center buildout and electricity generation demand, with new 2027 emissions regulations expected to help demand in the second half of 2026. Howmet is investing heavily in capacity expansion, including new manufacturing plants and equipment coming online in late 2025 and mid-2026, with capital expenditures expected to remain at elevated levels in 2026 and 2027 while maintaining its target of converting 90% of net income into free cash flow. The company closed the Consolidated Aerospace Manufacturing acquisition in April 2026 for approximately $1.8 billion and completed the Brunner Manufacturing acquisition in February 2026, both expected to enhance fastening systems capabilities and support organic growth initiatives. Management remains cautious regarding macroeconomic uncertainties and the potential effects of geopolitical developments, though the large aircraft backlog and strong spares backlogs are expected to underpin current build rates and revenue growth.