Sometimes, a stock’s first reaction tells only part of the story. On Aug. 30, Elon Musk said Space Exploration Technologies Corp. (NASDAQ:SPCX) would begin manufacturing gas turbine blades and vanes in-house, calling the move a way to bring new turbines online up to 18 months faster. Investors immediately focused on the competitive threat, sending Howmet Aerospace Inc. (NYSE:HWM) shares sharply lower.
The selloff was significant. Howmet fell more than 10% at the close on Sept. 4 and is down 18.4% over the past month, even though the stock remains up roughly 29% over the past year.
The market’s concern was straightforward: if one of the world’s most valuable industrial companies starts making its own turbine blades, could incumbent suppliers eventually lose business?
Then came GE Aerospace’s response.
GE Aerospace (NYSE:GE) announced it will acquire precision casting specialist Consolidated Precision Products (CPP) for $11.75 billion, describing the business as strategically important to securing future engine production. Rather than suggesting turbine blade manufacturing is becoming less valuable, the deal points in the opposite direction: one of the industry’s largest manufacturers is spending billions to secure access to one of its most constrained components.
That aligns with what JPMorgan analyst Seth Seifman sees as the bigger takeaway.
While GE’s acquisition initially raised concerns that the company could rely less on suppliers such as Howmet over time, Seifman argues the industry remains constrained by limited casting capacity.
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CPP currently supplies only about a quarter of GE’s requirements, GE expects to continue sourcing blades from third parties, and demand for advanced airfoils is projected to grow roughly 30% through 2030. In other words, GE is buying capacity because it cannot simply manufacture enough of these parts overnight.
Howmet ConcernsThat distinction matters for investors.
The market initially treated Musk’s announcement and GE’s acquisition as separate competitive threats to companies like Howmet. But together, they may tell a different story. Both SpaceX and GE are investing to secure turbine blade production instead of assuming sufficient capacity already exists.
Reuters reported that precision castings have remained one of aerospace’s biggest production bottlenecks since the pandemic, while industry executives continue to describe turbine blade manufacturing as one of the most technically demanding areas of industrial production.
Existing supply agreements also mean GE is expected to continue purchasing blades from suppliers including Howmet for years to come.
What Investors Should WatchThe real question may not be whether new competitors enter the turbine blade market, but whether anyone can build enough capacity to satisfy demand.
GE’s $11.75 billion acquisition suggests that buying scarce manufacturing capability may be faster than building it from scratch. If that proves true, the long-term investment case for turbine blade manufacturers could depend less on defending market share and more on expanding production in an industry where demand continues to outpace supply.
Key Takeaways Howmet shares are up 26.5% year to date, beating the S&P 500, its industry and major aerospace peers.Commercial aerospace revenues rose 28% in Q2 as aircraft build rates and engine-spares demand stayed strong.HWM raised 2026 revenue guidance to $10.00-$10.10B, while its 43.79X forward P/E exceeds peers and industry. Howmet Aerospace Inc.’s (HWM - Free Report) shares have surged 26.5% in the year-to-date period, outpacing the S&P 500’s gain of 12.2% and the industry’s 5.4% decline. The advanced engineered solutions provider for the aerospace and transportation industries has also outshone its peers like GE Aerospace (GE - Free Report) and RTX Corporation (RTX - Free Report) , which have returned 9.4% and 9.5%, respectively, over the same time frame.
HWM Outperforms the Industry, S&P 500 & Peers
Image Source: Zacks Investment Research
Closing at $259.27 on Sept. 4, the stock is trading below its 52-week high of $310.00 but significantly higher than its 52-week low of $176.32. The stock is trading below its 50-day moving average but way above its 200-day moving average.
Howmet Shares’ 50-Day and 200-Day SMA
Image Source: Zacks Investment Research
What’s Behind HWM Stock’s Momentum?The strongest driver of Howmet’s business at the moment is the commercial aerospace market. The company is benefiting from solid demand for both narrow and wide-body aircraft, which is supporting higher OEM spending. Pickup in air travel has been positive for the company, as the increased usage of aircraft spurs spending on parts and products that it provides.
Revenues from the commercial aerospace market increased 28% year over year in the second quarter of 2026, following an increase of 20% in the first quarter. The market constituted 53% of its overall business, supported by robust spares demand for engines. Healthy build rates at Airbus for A320 and A350 aircraft, along with a production recovery in the Boeing 737 MAX aircraft, hold promise for HWM’s spare engine demand.
Howmet is also benefiting from persistent strength in the defense aerospace business, cushioned by steady government support. HWM has been experiencing robust orders for engine spares for the F-35 program and other legacy fighters. Revenues from the defense aerospace market increased 11% year over year in the second quarter, constituting 15% of the company’s business.
It's worth noting that the fiscal year 2026 Defense Appropriations Act was signed into law in February 2026, providing a strong budgetary allocation for defense. Such robust provisions set the stage for Howmet, which remains focused on its defense business.
Driven by its business strength, Howmet raised its 2026 revenue outlook to $10.00-$10.10 billion. Adjusted EBITDA is anticipated between $3.21 billion and $3.25 billion, with adjusted earnings projected at $5.23-$5.31 per share.
HWM remains committed to strengthening its business through acquisitions. In April 2026, the company acquired Stanley Black & Decker, Inc.'s (SWK - Free Report) Consolidated Aerospace Manufacturing LLC (“CAM”) business for $1.8 billion. The buyout strengthened HWM’s aerospace fastening solutions portfolio through its established brands, engineering capabilities and deep customer relationships.
Howmet’s measures to reward shareholders are also encouraging. During the first half of the year, HWM distributed $97 million in dividends. In July 2026, it raised its quarterly dividend by 17% to 14 cents per share, equivalent to 56 cents annually. Additionally, through July, the company had repurchased $800 million worth of shares year to date.
Earnings Estimate Revision
Image Source: Zacks Investment Research
Earnings estimates for HWM have moved north over the past 60 days, reflecting analysts’ optimism.
The Zacks Consensus Estimate for 2026 earnings is pegged at $5.26 per share, suggesting year-over-year growth of 5.8%. The consensus mark for 2027 earnings is pinned at $6.22 per share, indicating a year-over-year increase of 5.1%. As earnings estimates increase, the stock is likely to follow suit.
Near-Term ConcernsHowever, Howmet’s shares declined recently after CEO Elon Musk announced that SpaceX intends to begin producing natural gas turbine blades at its Texas facility. This development is likely to bring a new competitive dynamic in the highly specialized turbine blade market, where Howmet has established a strong foothold. Nevertheless, HWM is poised to maintain strong demand momentum moving ahead with growing demand for industrial gas-turbine blades globally.
Stock Valuation
Image Source: Zacks Investment Research
The stock trades at a forward 12-month price-to-earnings (P/E) ratio of 43.79X, higher than the industry average of 30.74X. Also, it is overvalued compared with its peers, GE Aerospace and RTX Corp. Notably, GE Aerospace and RTX Corp. are trading at 39.02X and 26.44X, respectively. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours.
Should You Invest in HWM Stock Now?Persistent strength across both the commercial and defense aerospace markets, supported by strong build rates, spare demand for engines and a high defense budget, positions Howmet favorably for impressive growth in the quarters ahead. Built on a sound liquidity position, HWM’s shareholder-friendly policies also add to its appeal.
Despite its expensive valuation and likely competition from SpaceX in the turbine market, positive analyst sentiment, robust growth prospects and higher annual guidance for revenues and earnings indicate it is the appropriate time for potential investors to bet on this Zacks Rank #2 (Buy) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the latest close session, Howmet (HWM - Free Report) was down 10.7% at $231.53. This change lagged the S&P 500's daily loss of 0.58%. On the other hand, the Dow registered a loss of 1.18%, and the technology-centric Nasdaq decreased by 0.32%.
The maker of engineered products for the aerospace and other industries's stock has dropped by 8.61% in the past month, exceeding the Aerospace sector's loss of 10.2% and lagging the S&P 500's loss of 0.36%.
Analysts and investors alike will be keeping a close eye on the performance of Howmet in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.34, reflecting a 41.05% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.59 billion, indicating a 23.86% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $5.26 per share and revenue of $10.12 billion, which would represent changes of +39.52% and +22.68%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Howmet. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.38% upward. Howmet is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Howmet currently has a Forward P/E ratio of 49.29. This indicates a premium in contrast to its industry's Forward P/E of 21.9.
It's also important to note that HWM currently trades at a PEG ratio of 2.37. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Aerospace - Defense was holding an average PEG ratio of 1.65 at yesterday's closing price.
The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 37% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Zámořské akciové trhy zakončily dnešní obchodování v záporném teritoriu. Index Dow Jones klesl o 1,18 % na 52 786,28 bodu, S&P 500 si odepsal 0,58 % a technologický Nasdaq Composite ztratil 0,32 %. Hlavním důvodem poklesu byl růst cen ropy způsobený geopolitickým napětím na Blízkém východě, který opět rozproudil obavy z vyšší inflace a možného zvýšení úrokových sazeb ze strany centrální banky.
V rámci indexu S&P 500 se nejvíce dařilo energetickému sektoru s růstem o 1 %, utilitám se ziskem 0,9 % a realitám, které přidaly 0 %. Naopak nejvýraznější propad zaznamenala zdravotní péče se ztrátou 2,6 %, finanční sektor klesající o 1,4 % a základní materiály nižší o 0,9 %. Z jednotlivých akcií výrazně posílily společnosti Lumentum Holdings (LITE) o 11 %, Intel Corp (INTC) o 9,1 %, Corning (GLW) o 7,6 %, Coherent Corp (COHR) o 7,1 % a Hewlett Packard Enterprise (HPE) o 7,8 %. Naopak nejvýrazněji propadly akcie společností Amgen (AMGN) o 10 %, Howmet Aerospace (HWM) o 11 %, Stryker Corp (SYK) o 8,8 %, Expedia Group (EXPE) o 7,9 % a GoDaddy (GDDY) o 8,3 %.
Na dluhopisovém trhu rostly výnosy krátkodobých cenných papírů a výnos desetiletého amerického vládního dluhopisu mírně stoupl na 4,79 %. Měnový trh zůstal bez výraznějších změn, euro stagnovalo na úrovni 1,1623 USD a kurz japonského jenu se pohyboval kolem 154,30 JPY za dolar. Komodity zaznamenaly smíšený vývoj, když lehká ropa WTI posílila o 1 % na 92,43 USD za barel, zatímco spotové zlato mírně odepsalo 0,3 % na 4 392,74 USD za trojskou unci.
Index Dow Jones -1,18 % na 52786,28 b.
S&P 500 -0,58 % na 7673,51 b.
Nasdaq Composite -0,32 % na 26421,41 b.
Index S&P 500 -0,58 % na 7673,51 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +1 % Zdravotní péče -2,6 % Utility +0,9 % Finanční sektor -1,4 % Reality +0 % Základní materiály -0,9 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Lumentum Holdings (LITE) +11 % Howmet Aerospace (HWM) -11 % Intel Corp (INTC) +9,1 % Amgen (AMGN) -10 % Hewlett Packard Enterprise (HPE) +7,8 % Stryker Corp (SYK) -8,8 % Corning (GLW) +7,6 % GoDaddy (GDDY) -8,3 % Coherent Corp (COHR) +7,1 % Expedia Group (EXPE) -7,9 %
Daniel Marván, Fio banka, a.s.
Index Dow Jones -0,88 % na 52942,87 b. S&P 500 -0,35 % na 7691,61 b. Nasdaq Composite -0,35 % na 26413,63 b.
Nejsledovanější americké indexy se v úvodu obchodují v záporu.
Daří se akciím společnosti Freeport-McMoRan (+6,2 %), Intel (+6,2 %) a Coherent (+5,9 %). Růst zaznamenávají též akcie společnosti Corning (+5,8 %) v reakci na dohodu o rozšíření kapacity po navázání spolupráce se společností Verizon. Jejím cílem je rozšířit širokopásmové připojení a vybudovat celostátní dálkovou síťovou infrastrukturu pro provozovatele rozsáhlých datových center zaměřených na umělou inteligenci.
Naopak ztrácejí akcie Amgen (-7,2 %) poté, co společnost Novartis oznámila, že její lék na kardiovaskulární onemocnění v závěrečné fázi klinického hodnocení neuspěl. Dále klesá Howmet Aerospace (-5,9 %) a ServiceNow (-4,8 %).
Po oznámení o zařazení do indexu S&P 500, které proběhlo v pátek po zavření trhu, rostou též akcie společnosti Bloom Energy (+7,98 %).
Index S&P 500 -0,35 % na 7691,61 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +1,2 % Zdravotní péče -1,9 % Utility +0,5 % Komunikační služby -0,9 % Reality +0,3 % Finanční sektor -0,7 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Freeport-McMoRan (FCX) +6,2 % Amgen (AMGN) -7,2 % Intel Corp (INTC) +6,2 % Howmet Aerospace (HWM) -5,9 % Coherent Corp (COHR) +5,9 % ServiceNow (NOW) -4,8 % Corning (GLW) +5,8 % Intuit (INTU) -4,8 % Lumentum Holdings (LITE) +5,5 % DoorDash (DASH) -4,6 % Zdroj: Bloomberg
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Howmet (HWM - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Howmet currently has an average brokerage recommendation (ABR) of 1.30, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms. An ABR of 1.30 approximates between Strong Buy and Buy.
Of the 23 recommendations that derive the current ABR, 19 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 82.6% and 4.4% of all recommendations.
Brokerage Recommendation Trends for HWM
Check price target & stock forecast for Howmet here>>>
The ABR suggests buying Howmet, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near-term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is HWM a Good Investment?Looking at the earnings estimate revisions for Howmet, the Zacks Consensus Estimate for the current year has increased 5.5% over the past month to $5.26.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Howmet. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Howmet may serve as a useful guide for investors.
Key Takeaways HWM's Forged Wheels volumes fell 8% year over year but rose 7% sequentially in the second quarter.Lower OEM builds continue to weigh on commercial transportation demand, posing a near-term growth headwind.Aerospace strength, including F-35 engine spares and fastening systems, is bolstering HWM's performance. Howmet Aerospace Inc. (HWM - Free Report) continues to face weakness in the commercial transportation market, although conditions are showing early signs of improvement. In the second quarter of 2026, Forged Wheels revenues increased 14% year over year to $316 million, primarily driven by higher aluminum and other inflationary cost pass-through, despite an 8% year-over-year decline in volumes. However, volumes increased 7% sequentially, reflecting the beginning of a recovery in the North American commercial transportation market.
Despite the sequential improvement, commercial transportation demand remains a near-term headwind as lower OEM builds continue to weigh on volumes. Howmet's exposure to the market, particularly through its Forged Wheels business, may remain a drag on growth if the recovery progresses slowly.
As a global player, Howmet remains vulnerable to supply-chain volatility, which has already led to delays and higher costs in recent years. These persistent supply-chain challenges in the transportation and aerospace sectors are expected to continue affecting the company’s ability to deliver finished products to customers within the stipulated time.
Despite difficult conditions in the commercial transportation market, Howmet’s performance is being bolstered by sustained strength in the commercial and defense aerospace markets. Strong demand for engine spares for the F-35 program, aerospace fastening systems and airframe structural components further contributes to a promising outlook for the company.
Segment Snapshot of HWM’s PeersAmong its major peers, Textron Inc. (TXT - Free Report) reported 3% sales growth in the second quarter of 2026. Revenues from Textron’s Aviation segment increased 1% year over year in the same period. The solid performance of Textron’s segment was primarily driven by higher pricing.
Another peer, RTX Corporation (RTX - Free Report) , has been experiencing improving commercial OEM and commercial aftermarket sales in recent times. RTX Corp.’s second-quarter 2026 results reflected solid year-over-year sales growth of 8.2%. In particular, improvement in commercial aerospace bolstered quarterly results for both its Collins Aerospace and Pratt & Whitney business segments.
HWM's Price Performance, Valuation and EstimatesShares of Howmet have surged 45% in the past year against the industry’s decline of 7.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 43.02X, above the industry’s average of 30.57X. Howmet carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s earnings has been on the rise over the past 60 days.
Image Source: Zacks Investment Research
Howmet currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
On CNBC’s “Mad Money Lightning Round,” Jim Cramer said he is not sure that there’s a lot of upside in AtaiBeckley Inc. (NASDAQ:ATAI).
“When I do a spec, I want max upside and I’m not sure that will give you that kind of thing,” he added.
Deutsche Bank analyst David Hoang downgraded AtaiBeckley from Buy to Hold on Aug. 12 and cut the price target from $12 to $8.
MP Materials“Look, we know we need those critical materials. That’s the single best, most investable play in the situation. But I don’t expect anything to happen very soon, and that’s the problem,” Cramer said when asked about MP Materials Corp. (NYSE:MPX).
On Aug. 7, MP Materials posted second-quarter revenue that surpassed analyst expectations. The company reported $108.49 million in second-quarter revenue, surpassing the $99.18 million consensus by 9.4% and nearly doubling the $57.39 million reported in the comparable period a year earlier.
Howmet AerospaceCramer recommends holding on to Howmet Aerospace Inc. (NYSE:HWM) or buying some. “It’s being viewed as the best way to play aerospace because all the others are so fraught with difficulty,” he added.
Trending
Bernstein analyst Douglas Harned, on Aug. 24, maintained Howmet Aerospace with an Outperform rating and raised the price target from $318 to $328.
AeroVironmentCramer said even though AeroVironment, Inc. (NASDAQ:AVAV) is down 40%, the “competition in their particular niche of defense work is so strong that I just have to say not yet.”
AeroVironment will report its financial results for the first quarter fiscal year 2027, after the closing bell on Wednesday, Sept. 9. Analysts expect the company to report quarterly earnings at 30 cents per share on revenue of $459.9 million.
Rocket CompaniesWhen asked about Rocket Companies, Inc. (NYSE:RKT), he said, “My problem is that every time I’ve tried to imagine that, I’ve been wrong, and so I am not going to do that on this show. It’s been a mistake, and I’m not going to double down.”
On Aug. 7, Rocket Companies reported worse-than-expected second-quarter financial results.
Price Action AeroVironment shares gained 0.9% to settle at $145.39 on Wednesday. Rocket Companies shares rose 4.1% to close at $13.56 during the session. MP Materials gained 1.8% to settle at $54.70 on Wednesday. Howmet Aerospace shares fell 0.8% to close at $252.96. AtaiBeckley shares gained 0.1%, settling at $7.35. Read Next
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
SummaryHowmet Aerospace is a buy after an overdone selloff triggered by SpaceX/Tesla's turbine blade plans, which pose no near-term threat.HWM's core moat is protected by technical expertise, multi-year backlogs, and sole-supplier long-term agreements across commercial and defense aerospace.Financial strength is evident: 24% YoY revenue growth, 37.7% EBITDA margin, $838M YTD free cash flow, and ongoing share repurchases and dividend increases.Risks include potential new entrants and aerospace partner disruptions, but capacity expansions and strong demand underpin a compelling forward earnings profile.Alllex/iStock via Getty Images
Market Overreaction Creates An Opportunity Elon Musk has announced that SpaceX and Tesla will begin to enter natural gas turbine blade production in its Bastrop, Texas facility. Howmet Aerospace's (HWM) shares have sold off sharply
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of HWM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
A downtrend has been apparent in Howmet (HWM - Free Report) lately with too much selling pressure. The stock has declined 14.5% over the past four weeks. However, given the fact that it is now in oversold territory and Wall Street analysts are majorly in agreement about the company's ability to report better earnings than they predicted earlier, the stock could be due for a turnaround.
We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.
RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.
Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.
So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.
However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.
Why a Trend Reversal is Due for HWMThe heavy selling of HWM shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 27.69. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.
This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering HWM in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 5.5% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.
Moreover, HWM currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Everyone knows Nvidia Corp sits at the heart of the AI boom. Almost nobody knows who makes the turbine blades powering the gas turbines behind the next generation of AI data centers.
That changed when Elon Musk said only a few specialized casting companies can manufacture the blades and vanes needed for modern industrial gas turbines—and that all of them are massively backlogged. As power infrastructure becomes increasingly critical to AI expansion, Musk’s comments have unexpectedly put one of manufacturing’s most overlooked niches in the spotlight.
The Companies Behind AI’s Next BottleneckMusk didn’t identify the manufacturers by name. TechCrunch reported that four companies worldwide cast blades and vanes at industrial scale, and all of them are at capacity. TechCrunch did not name them. Among the companies that publicly advertise industrial gas turbine airfoil casting are Howmet Aerospace Inc. (NYSE:HWM), PCC Airfoils, Chromalloy, Doncasters and Consolidated Precision Products — only Howmet is a standalone public company.
These aren’t ordinary metal components. Turbine blades operate under extreme temperatures and stress, requiring highly specialized casting techniques and decades of manufacturing expertise. That helps explain why capacity remains limited even as demand for gas turbines has surged alongside AI infrastructure investment.
Musk has already moved past the hypothetical. SpaceX (NASDAQ:SPCX) is building its own turbine blade foundry in Bastrop, Texas, he confirmed Saturday.
“The limiting factor for nat gas turbine production is casting the blades & vanes,” Musk wrote. “By doing in-house casting at SpaceX, we can accelerate nat gas turbines coming online by up to 18 months.”
That cuts both ways for the incumbent casters. A shortage only a handful of companies can relieve is a pricing advantage — until the largest buyers build the capability themselves. SpaceX’s foundry is the first sign AI power developers may insource blade casting rather than queue for it.
Why Howmet Aerospace Stands OutAmong the companies commonly identified as capable of producing these advanced turbine components, Howmet Aerospace occupies a unique position for investors.
Unlike PCC Airfoils, (which is owned by Berkshire Hathaway through Precision Castparts), or privately held Chromalloy, Howmet is the only major standalone public company offering direct exposure to this highly specialized corner of the supply chain.
That doesn’t make Howmet the next Nvidia. But Musk’s comments do suggest investors may need to broaden their understanding of AI infrastructure. If the AI buildout increasingly depends on how quickly new gas turbines can be deployed, companies making the components inside those turbines could become strategically more important than many investors previously appreciated.
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Investment TakeawayMusk’s comments weren’t really about turbine blades—they were about scarcity. By highlighting that only a handful of manufacturers can produce one of the most critical components in modern gas turbines, he shifted attention toward an overlooked segment of the industrial supply chain that could become increasingly important as AI infrastructure expands.
For investors, that means looking beyond the companies building AI models and designing chips. If Musk is right about where the next bottleneck lies, niche manufacturers such as Howmet Aerospace, Berkshire Hathaway-owned PCC Airfoils and Chromalloy may become just as important to watch as the technology companies driving demand.
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Howmet (HWM - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
While there are numerous reasons why the stock of this maker of engineered products for the aerospace and other industries is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthEarnings growth is arguably the most important factor, as stocks exhibiting exceptionally surging profit levels tend to attract the attention of most investors. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Howmet is 39.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 38.6% this year, crushing the industry average, which calls for EPS growth of 17%.
Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Howmet is 31.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 9.7%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 21.3% over the past 3-5 years versus the industry average of 12.2%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Howmet have been revising upward. The Zacks Consensus Estimate for the current year has surged 5.6% over the past month.
Bottom LineHowmet has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Howmet is a potential outperformer and a solid choice for growth investors.
Index Dow Jones -0,64 % na 53216,18 b. S&P 500 -0,47 % na 7675,22 b. Nasdaq Composite -0,34 % na 26311,38 b.
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Citelnějším poklesem se obchoduje sektor utilit, kde klesá zejména Edison International (- 24 %) a PG&E Corp (- 19 %). Hlavním důvodem je kalifornská legislativa týkající se odpovědnosti energetických společností za škody při požárech. Kalifornie upravila návrh tak, že neobsahuje očekávanou ochranu utilit před žalobami pojišťoven.
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Index S&P 500 -0,47 % na 7675,22 b. Nejsilnější sektory S&P Změna Nejslabší sektory S&P Změna Energie +1,1 % Komunikační služby -1,7 % Informační technologie +0 % Utility -1,4 % Nezbytná spotřeba -0,4 % Reality -1,3 % Nejsilnější akcie S&P Změna Nejslabší akcie S&P Změna Tesla (TSLA) +5,0 % Edison International (EIX) -24 % Veeva Systems (VEEV) +4,3 % PG&E Corp (PCG) -19 % Crowdstrike Holdings (CRWD) +4,1 % Howmet Aerospace (HWM) -8,7 % Coinbase Global (COIN) +3,8 % Aon (AON) -7,4 % Deere (DE) +3,6 % Take-Two Interactive Software (TTWO) -6,6 %
Marek Kameništiak
Fio banka, a.s.
Prohlášení
, /PRNewswire/ -- Howmet Aerospace Inc. (NYSE: HWM) announced today that John C. Plant, Executive Chairman and Chief Executive Officer will speak at the 2026 Jefferies Global Industrials Conference in New York, NY on Wednesday, September 9, 2026, at 10:10 AM ET.
A real-time webcast of the event will be available on the "Investors/Events and Presentations" section of www.howmet.com, where a webcast replay will be available for 90 days following the presentation.
About Howmet Aerospace
Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace, gas turbine, and transportation industries. The Company's primary businesses focus on engine components, fastening systems, and airframe structural components necessary for mission-critical performance and efficiency, including in aerospace, defense, and gas turbine applications, as well as forged aluminum wheels for commercial transportation. With approximately 1,200 granted and pending patents, the Company's differentiated technologies enable lighter, more fuel-efficient aircraft and commercial trucks to operate with a lower carbon footprint. For more information, visit www.howmet.com.
Dissemination of Company Information
Howmet Aerospace intends to make future announcements regarding Company developments and financial performance through its website at www.howmet.com.
Key Takeaways Howmet posted a 32.1% Q2 adjusted EBITDA margin, up 340 basis points year over year.Adjusted operating income rose 41%, while margins expanded across key segments on strong demand.Pricing and productivity gains are expected to support a 30.1-30.5% adjusted EBITDA margin in 2026. Howmet Aerospace Inc. (HWM - Free Report) continues to strengthen its margins, supported by robust second-quarter performance. In the second quarter of 2026, the company’s cost of goods sold rose 16.9% year over year to $1.60 billion, while selling, general, administrative and other expenses increased 66.3% to $148 million. This followed a 13.1% increase in cost of goods sold to $1.46 billion and a 30.6% rise in SG&A expenses to $111 million in the first quarter.
Despite these headwinds, Howmet has maintained consistent margin expansion. The company reported an adjusted EBITDA margin of 32.1% in the second quarter of 2026, up 340 basis points year over year, compared with 32.0% in the first quarter. Adjusted operating income increased 41% year over year to $733 million in the second quarter, while the adjusted operating margin expanded 350 basis points to 28.8%.
Also, the Engine Products, Fastening Systems and Engineered Structures segments reported margin gains of 470, 90 and 170 basis points, respectively, in the second quarter, supported by strong commercial and defense aerospace demand, acquisition contributions, productivity gains and product rationalization. Forged Wheels also posted a 30-basis-point margin improvement.
Strong demand from both the commercial and defense aerospace markets continues to support the company’s overall performance. For 2026, Howmet expects adjusted EBITDA margin to be 30.1-30.5%. Strong pricing and ongoing productivity improvements are expected to support Howmet’s margin expansion in 2026.
Margin Performance of HWM’s PeersAmong its major peers, RTX Corp.’s (RTX - Free Report) total costs and expenses increased 12.8% year over year to $22 billion in the second quarter of 2026. RTX Corp. generated an operating profit of $2.81 billion in the second quarter. RTX Corp. reported adjusted operating profit of $2.15 billion in the prior-year quarter.
Another peer of HWM, GE Aerospace’s (GE - Free Report) cost of sales surged 26.7% year over year in the second quarter of 2026. GE Aerospace’s operating profit increased 18% year over year. GE Aerospace’s operating margin was 21.7%, down 130 bps year over year.
HWM's Price Performance, Valuation and EstimatesShares of Howmet have surged 58.6% in the past year against the industry’s decline of 0.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 46.38X, above the industry’s average of 32.26X. Howmet carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s 2026 earnings has increased 6.5% over the past 60 days.
Image Source: Zacks Investment Research
Howmet currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
EP Wealth Advisors LLC acquired a new stake in shares of Howmet Aerospace Inc. (NYSE:HWM – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm acquired 7,024 shares of the company’s stock, valued at approximately $1,888,000.
A number of other large investors also recently bought and sold shares of HWM. Brighton Jones LLC raised its position in shares of Howmet Aerospace by 5.4% in the 4th quarter. Brighton Jones LLC now owns 2,548 shares of the company’s stock worth $279,000 after acquiring an additional 130 shares in the last quarter. Acadian Asset Management LLC purchased a new stake in shares of Howmet Aerospace during the 1st quarter worth $399,000. Sivia Capital Partners LLC bought a new stake in Howmet Aerospace during the second quarter valued at about $216,000. Brown Advisory Inc. boosted its position in Howmet Aerospace by 31.0% during the second quarter. Brown Advisory Inc. now owns 4,180 shares of the company’s stock valued at $778,000 after purchasing an additional 990 shares in the last quarter. Finally, Cary Street Partners Financial LLC bought a new stake in Howmet Aerospace during the second quarter valued at about $145,000. Institutional investors own 90.46% of the company’s stock.
Analysts Set New Price Targets A number of brokerages have commented on HWM. Jefferies Financial Group reiterated a “buy” rating and issued a $370.00 target price on shares of Howmet Aerospace in a report on Sunday, August 9th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $320.00 price target on shares of Howmet Aerospace in a report on Friday, May 8th. Zacks Research raised shares of Howmet Aerospace from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, August 12th. BTIG Research boosted their price objective on shares of Howmet Aerospace from $300.00 to $340.00 and gave the stock a “buy” rating in a research note on Monday, August 10th. Finally, Royal Bank Of Canada increased their target price on shares of Howmet Aerospace from $325.00 to $350.00 and gave the company an “outperform” rating in a research report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $315.67.
Get Our Latest Stock Analysis on Howmet Aerospace Howmet Aerospace Trading Down 0.8% Shares of NYSE:HWM opened at $271.58 on Friday. The business’s 50-day moving average is $278.62 and its 200 day moving average is $258.62. Howmet Aerospace Inc. has a 1 year low of $170.24 and a 1 year high of $310.00. The firm has a market capitalization of $108.66 billion, a P/E ratio of 58.53, a P/E/G ratio of 1.94 and a beta of 1.20. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.82 and a quick ratio of 0.87.
Howmet Aerospace (NYSE:HWM – Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported $1.33 EPS for the quarter, beating analysts’ consensus estimates of $1.24 by $0.09. The company had revenue of $2.55 billion during the quarter, compared to analysts’ expectations of $2.43 billion. Howmet Aerospace had a return on equity of 33.91% and a net margin of 20.52%.The firm’s revenue was up 24.1% compared to the same quarter last year. During the same period last year, the business posted $0.91 earnings per share. Howmet Aerospace has set its Q3 2026 guidance at 1.340-1.360 EPS and its FY 2026 guidance at 5.230-5.310 EPS. On average, research analysts predict that Howmet Aerospace Inc. will post 5.33 earnings per share for the current fiscal year.
Howmet Aerospace Increases Dividend The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 25th. Investors of record on Friday, August 7th will be given a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 0.2%. The ex-dividend date of this dividend is Friday, August 7th. This is an increase from Howmet Aerospace’s previous quarterly dividend of $0.12. Howmet Aerospace’s payout ratio is 12.07%.
(Free Report)
Howmet Aerospace Inc is an industrial technology company that designs, manufactures and repairs engineered metal products for the aerospace, transportation and industrial markets. Its product portfolio includes precision castings and forgings, engineered fasteners, seamless rolled rings, and complex components for turbine engines, airframes and industrial gas turbines. The company also provides aftermarket services such as component repair, overhaul and parts distribution to support the operating fleet of commercial and military customers.
Howmet serves a global customer base of original equipment manufacturers (OEMs) and aftermarket operators, with manufacturing, service and distribution facilities across North America, Europe and Asia.
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Advisors Capital Management LLC acquired a new stake in shares of Howmet Aerospace Inc. (NYSE:HWM – Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm acquired 3,581 shares of the company’s stock, valued at approximately $963,000.
A number of other hedge funds also recently bought and sold shares of the company. West Paces Advisors Inc. bought a new position in shares of Howmet Aerospace during the 2nd quarter valued at $27,000. Bartlett & CO. Wealth Management LLC boosted its holdings in Howmet Aerospace by 55.1% during the 2nd quarter. Bartlett & CO. Wealth Management LLC now owns 107 shares of the company’s stock valued at $29,000 after acquiring an additional 38 shares during the period. Acumen Wealth Advisors LLC bought a new position in Howmet Aerospace during the 4th quarter worth approximately $25,000. Newbridge Financial Services Group Inc. grew its position in Howmet Aerospace by 119.7% during the 2nd quarter. Newbridge Financial Services Group Inc. now owns 134 shares of the company’s stock worth $25,000 after acquiring an additional 73 shares during the last quarter. Finally, Vermillion & White Wealth Management Group LLC increased its stake in Howmet Aerospace by 65.1% in the 4th quarter. Vermillion & White Wealth Management Group LLC now owns 137 shares of the company’s stock worth $28,000 after purchasing an additional 54 shares during the period. Institutional investors own 90.46% of the company’s stock.
Howmet Aerospace Trading Down 0.8% Shares of NYSE HWM opened at $271.58 on Friday. The firm’s 50 day moving average price is $278.62 and its 200-day moving average price is $258.62. The company has a market cap of $108.66 billion, a PE ratio of 58.53, a P/E/G ratio of 1.96 and a beta of 1.20. Howmet Aerospace Inc. has a 52-week low of $170.24 and a 52-week high of $310.00. The company has a debt-to-equity ratio of 0.71, a quick ratio of 0.87 and a current ratio of 1.82.
Howmet Aerospace (NYSE:HWM – Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The company reported $1.33 EPS for the quarter, beating analysts’ consensus estimates of $1.24 by $0.09. Howmet Aerospace had a net margin of 20.52% and a return on equity of 33.91%. The firm had revenue of $2.55 billion for the quarter, compared to analysts’ expectations of $2.43 billion. During the same quarter in the prior year, the company posted $0.91 earnings per share. The business’s revenue for the quarter was up 24.1% on a year-over-year basis. Howmet Aerospace has set its Q3 2026 guidance at 1.340-1.360 EPS and its FY 2026 guidance at 5.230-5.310 EPS. On average, equities research analysts expect that Howmet Aerospace Inc. will post 5.33 EPS for the current fiscal year. Howmet Aerospace Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 25th. Investors of record on Friday, August 7th will be given a dividend of $0.14 per share. This represents a $0.56 annualized dividend and a dividend yield of 0.2%. This is a boost from Howmet Aerospace’s previous quarterly dividend of $0.12. The ex-dividend date of this dividend is Friday, August 7th. Howmet Aerospace’s payout ratio is 12.07%.
Analysts Set New Price Targets Several analysts have weighed in on the company. Sanford C. Bernstein reiterated an “outperform” rating and issued a $318.00 price objective on shares of Howmet Aerospace in a research report on Tuesday, June 16th. Morgan Stanley reiterated an “overweight” rating and set a $335.00 price target on shares of Howmet Aerospace in a report on Monday, August 10th. Wall Street Zen cut shares of Howmet Aerospace from a “strong-buy” rating to a “buy” rating in a research report on Sunday, July 5th. Weiss Ratings raised shares of Howmet Aerospace from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday. Finally, Zacks Research upgraded shares of Howmet Aerospace from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $315.67.
Get Our Latest Research Report on HWM
Howmet Aerospace Company Profile (Free Report)
Howmet Aerospace Inc is an industrial technology company that designs, manufactures and repairs engineered metal products for the aerospace, transportation and industrial markets. Its product portfolio includes precision castings and forgings, engineered fasteners, seamless rolled rings, and complex components for turbine engines, airframes and industrial gas turbines. The company also provides aftermarket services such as component repair, overhaul and parts distribution to support the operating fleet of commercial and military customers.
Howmet serves a global customer base of original equipment manufacturers (OEMs) and aftermarket operators, with manufacturing, service and distribution facilities across North America, Europe and Asia.
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Investors who pick JEPI over SCHD almost always do it for the yield gap. The JPMorgan Equity Premium Income ETF (NYSEARCA:JEPI) pays monthly checks of around 8% of its current share price, while the Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) pays closer to 3%. That spread sells JEPI on every dividend forum and retirement blog, and the cash genuinely lands in the account.
The problem is that the two payouts are treated very differently at tax time. SCHD pays qualified dividends taxed at long-term capital gains rates. JEPI’s monthly distribution is mostly ordinary income taxed at the holder’s full marginal wage bracket, because the fund earns most of its yield from equity-linked notes rather than from the stocks it holds.
Once that difference is applied to the tax code, the gap between the two funds is not what the headline number implies. Where you hold each fund matters more than which fund you hold.
How JEPI Actually Makes Its Money JEPI owns a defensive slice of U.S. large caps, with top positions such as Broadcom (NASDAQ:AVGO | AVGO Price Prediction), Ross Stores (NASDAQ:ROST), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), and Howmet (NYSE:HWM), each at 1.7%. Those stocks pay dividends, but the yield doesn’t come from them.
The yield comes from an options overlay JPMorgan implements through equity-linked notes, or ELNs. An ELN is a structured note issued by a bank that pays a coupon derived from selling out-of-the-money S&P 500 calls, packaging what would otherwise be options premium as note interest instead.
The IRS treats that coupon as ordinary income at the holder’s marginal rate. When JEPI receives ELN income and distributes it, the ordinary-income character passes through to shareholders. That is why the monthly check is taxed like a paycheck.
SCHD holds dividend-paying U.S. equities like Qualcomm (NASDAQ:QCOM), Texas Instruments (NASDAQ:TXN), UnitedHealth (NYSE:UNH), Coca-Cola (NYSE:KO), and Merck (NYSE:MRK), collects the dividends, and passes them through. Because the fund satisfies the holding-period rule, virtually all of that distribution qualifies for the lower rate.
What the After-Tax Yields Actually Look Like JEPI’s annualized forward distribution of about $4.40 on a share price of $58 pencils to a yield near 7.6%. SCHD’s annualized forward of $1.01 on $35 sits near 2.9%. That is a pre-tax gap of roughly 4.7 points.
In the top federal bracket, qualified dividends are taxed at 20% plus the 3.8% net investment income tax, for a combined rate of 23.8%. Ordinary income tops out at 37%, and with NIIT that becomes 40.8%. Apply those, and SCHD’s yield lands near 2.2% after tax, while JEPI’s lands near 4.5%. The gap has compressed from 4.7 points to about 2.3.
In the middle bracket, say a 24% marginal filer below the NIIT thresholds, qualified dividends are taxed at 15%, so SCHD nets roughly 2.5%. JEPI’s ordinary income is taxed at 24%, so it nets roughly 5.8%. Still a real lead, but the 4.7-point sticker has become closer to 3.3.
The tax code takes a bigger bite out of JEPI’s yield than SCHD’s at every bracket. JEPI still generates more spendable cash, though less than the pre-tax comparison advertises, and the higher the bracket, the more the advantage erodes.
Where Each Fund Belongs In a taxable brokerage account, the after-tax number funds retirement spending. A top-bracket investor holding JEPI in a taxable account hands back nearly 41% of every distribution, which is why the compressed gap matters for placement decisions. It is one of several IRS rules that quietly reshape retirement income, and we mapped the rest in a free tax trap report.
Move both funds inside a traditional or Roth IRA and the calculation collapses. Distributions in a tax-advantaged account are shielded from current taxation, so JEPI’s ordinary-income character costs nothing while it sits there. The full pre-tax yield gap survives intact.
SCHD’s qualified-dividend character earns no extra credit inside an IRA, because that character was already going to be taxed favorably outside. Putting SCHD in the taxable account and JEPI in the tax-deferred account uses each fund’s strengths where they actually pay off.
If choosing between these two funds purely for yield and planning to hold in taxable, JEPI is a worse deal than the sticker suggests, and SCHD deserves another look. If IRA space is available, JEPI’s income engine works closer to its advertised strength, and that is where it belongs.
Contact [email protected] for any questions or corrections.
B. Metzler seel. Sohn & Co. AG bought a new stake in Howmet Aerospace Inc. (NYSE:HWM – Free Report) during the second quarter, according to its most recent filing with the SEC. The firm bought 192,199 shares of the company’s stock, valued at approximately $51,675,000.
A number of other institutional investors and hedge funds have also recently bought and sold shares of HWM. Silvant Capital Management LLC bought a new stake in Howmet Aerospace during the 2nd quarter valued at approximately $2,275,000. LaSalle St. Investment Advisors LLC bought a new position in Howmet Aerospace in the 2nd quarter worth approximately $361,000. Mystic Asset Management Inc. acquired a new position in shares of Howmet Aerospace during the second quarter worth approximately $454,000. Portfolio Design Labs LLC acquired a new position in shares of Howmet Aerospace during the second quarter worth approximately $2,237,000. Finally, Reliant Investment Partners LLC bought a new stake in shares of Howmet Aerospace in the second quarter valued at approximately $334,000. Institutional investors and hedge funds own 90.46% of the company’s stock.
Wall Street Analyst Weigh In A number of equities analysts recently issued reports on HWM shares. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $318.00 target price on shares of Howmet Aerospace in a research report on Tuesday, June 16th. TD Cowen increased their price target on shares of Howmet Aerospace from $300.00 to $320.00 and gave the company a “buy” rating in a report on Monday, July 13th. BNP Paribas Exane restated an “outperform” rating and issued a $340.00 price target (up from $265.00) on shares of Howmet Aerospace in a research report on Friday, May 8th. Morgan Stanley restated an “overweight” rating and set a $335.00 price objective on shares of Howmet Aerospace in a report on Monday, August 10th. Finally, Zacks Research raised shares of Howmet Aerospace from a “hold” rating to a “strong-buy” rating in a research report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $315.67.
Read Our Latest Analysis on Howmet Aerospace Howmet Aerospace Stock Performance Shares of NYSE:HWM opened at $273.39 on Friday. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.82 and a quick ratio of 0.87. The business’s fifty day moving average price is $278.47 and its two-hundred day moving average price is $258.53. Howmet Aerospace Inc. has a fifty-two week low of $170.24 and a fifty-two week high of $310.00. The stock has a market capitalization of $109.39 billion, a price-to-earnings ratio of 58.92, a price-to-earnings-growth ratio of 2.03 and a beta of 1.20.
Howmet Aerospace (NYSE:HWM – Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The company reported $1.33 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.24 by $0.09. Howmet Aerospace had a return on equity of 33.91% and a net margin of 20.52%.The company had revenue of $2.55 billion during the quarter, compared to analysts’ expectations of $2.43 billion. During the same period last year, the business earned $0.91 earnings per share. The business’s revenue was up 24.1% on a year-over-year basis. Howmet Aerospace has set its Q3 2026 guidance at 1.340-1.360 EPS and its FY 2026 guidance at 5.230-5.310 EPS. As a group, analysts predict that Howmet Aerospace Inc. will post 5.33 EPS for the current fiscal year.
Howmet Aerospace Increases Dividend The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 25th. Stockholders of record on Friday, August 7th will be issued a dividend of $0.14 per share. The ex-dividend date of this dividend is Friday, August 7th. This is a positive change from Howmet Aerospace’s previous quarterly dividend of $0.12. This represents a $0.56 annualized dividend and a dividend yield of 0.2%. Howmet Aerospace’s dividend payout ratio (DPR) is 12.07%.
Howmet Aerospace Profile (Free Report)
Howmet Aerospace Inc is an industrial technology company that designs, manufactures and repairs engineered metal products for the aerospace, transportation and industrial markets. Its product portfolio includes precision castings and forgings, engineered fasteners, seamless rolled rings, and complex components for turbine engines, airframes and industrial gas turbines. The company also provides aftermarket services such as component repair, overhaul and parts distribution to support the operating fleet of commercial and military customers.
Howmet serves a global customer base of original equipment manufacturers (OEMs) and aftermarket operators, with manufacturing, service and distribution facilities across North America, Europe and Asia.
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Asahi Life Asset Management CO. LTD. acquired a new position in shares of Howmet Aerospace Inc. (NYSE:HWM – Free Report) in the second quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund acquired 1,888 shares of the company’s stock, valued at approximately $508,000.
Other institutional investors and hedge funds have also added to or reduced their stakes in the company. Newbridge Financial Services Group Inc. grew its holdings in shares of Howmet Aerospace by 119.7% in the 2nd quarter. Newbridge Financial Services Group Inc. now owns 134 shares of the company’s stock valued at $25,000 after buying an additional 73 shares during the period. Acumen Wealth Advisors LLC acquired a new stake in Howmet Aerospace during the 4th quarter worth $25,000. West Paces Advisors Inc. acquired a new stake in Howmet Aerospace during the 2nd quarter worth $27,000. Cornerstone Financial Management LLC bought a new position in Howmet Aerospace during the fourth quarter worth about $28,000. Finally, Vermillion & White Wealth Management Group LLC raised its position in shares of Howmet Aerospace by 65.1% during the fourth quarter. Vermillion & White Wealth Management Group LLC now owns 137 shares of the company’s stock worth $28,000 after purchasing an additional 54 shares during the period. Institutional investors own 90.46% of the company’s stock.
Howmet Aerospace Price Performance Shares of NYSE HWM opened at $283.47 on Thursday. The stock has a market capitalization of $113.42 billion, a price-to-earnings ratio of 61.09, a PEG ratio of 2.09 and a beta of 1.20. Howmet Aerospace Inc. has a fifty-two week low of $169.45 and a fifty-two week high of $310.00. The business has a 50-day moving average of $278.29 and a 200-day moving average of $258.07. The company has a debt-to-equity ratio of 0.71, a current ratio of 1.82 and a quick ratio of 0.87.
Howmet Aerospace (NYSE:HWM – Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $1.33 EPS for the quarter, beating analysts’ consensus estimates of $1.24 by $0.09. The firm had revenue of $2.55 billion during the quarter, compared to analysts’ expectations of $2.43 billion. Howmet Aerospace had a net margin of 20.52% and a return on equity of 33.91%. The company’s revenue for the quarter was up 24.1% compared to the same quarter last year. During the same quarter last year, the company posted $0.91 earnings per share. Howmet Aerospace has set its Q3 2026 guidance at 1.340-1.360 EPS and its FY 2026 guidance at 5.230-5.310 EPS. As a group, sell-side analysts predict that Howmet Aerospace Inc. will post 5.33 earnings per share for the current fiscal year. Howmet Aerospace Increases Dividend The firm also recently announced a quarterly dividend, which will be paid on Tuesday, August 25th. Stockholders of record on Friday, August 7th will be paid a dividend of $0.14 per share. The ex-dividend date is Friday, August 7th. This represents a $0.56 annualized dividend and a dividend yield of 0.2%. This is an increase from Howmet Aerospace’s previous quarterly dividend of $0.12. Howmet Aerospace’s dividend payout ratio is presently 12.07%.
Analyst Upgrades and Downgrades Several equities analysts have recently weighed in on HWM shares. TD Cowen lifted their price objective on Howmet Aerospace from $300.00 to $320.00 and gave the company a “buy” rating in a report on Monday, July 13th. Sanford C. Bernstein reissued an “outperform” rating and set a $318.00 target price on shares of Howmet Aerospace in a research note on Tuesday, June 16th. BTIG Research raised their target price on shares of Howmet Aerospace from $300.00 to $340.00 and gave the stock a “buy” rating in a report on Monday, August 10th. Wells Fargo & Company reaffirmed an “outperform” rating and issued a $315.00 price target on shares of Howmet Aerospace in a research note on Monday, August 10th. Finally, UBS Group raised their price objective on shares of Howmet Aerospace from $299.00 to $326.00 and gave the stock a “neutral” rating in a report on Friday, August 7th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and two have given a Hold rating to the company’s stock. According to MarketBeat.com, Howmet Aerospace has a consensus rating of “Moderate Buy” and an average target price of $315.67.
Check Out Our Latest Stock Analysis on HWM
(Free Report)
Howmet Aerospace Inc is an industrial technology company that designs, manufactures and repairs engineered metal products for the aerospace, transportation and industrial markets. Its product portfolio includes precision castings and forgings, engineered fasteners, seamless rolled rings, and complex components for turbine engines, airframes and industrial gas turbines. The company also provides aftermarket services such as component repair, overhaul and parts distribution to support the operating fleet of commercial and military customers.
Howmet serves a global customer base of original equipment manufacturers (OEMs) and aftermarket operators, with manufacturing, service and distribution facilities across North America, Europe and Asia.
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On August 19, 2026, Howmet Aerospace Inc (HWM) shares fell by 3.1%, closing at $283.48. This decline is notable given the stock's 52-week range of $169.45 to $3
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Howmet (HWM - Free Report) , which currently has a Momentum Style Score of B. We also discuss some of the main drivers of the Momentum Style Score, like price change and earnings estimate revisions.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Howmet currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market? In order to see if HWM is a promising momentum pick, let's examine some Momentum Style elements to see if this maker of engineered products for the aerospace and other industries holds up.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For HWM, shares are up 2.59% over the past week while the Zacks Aerospace - Defense industry is up 0.93% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 4.89% compares favorably with the industry's 9.2% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Howmet have risen 11.74%, and are up 70.24% in the last year. On the other hand, the S&P 500 has only moved 4.19% and 20.55%, respectively.
Investors should also take note of HWM's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now HWM is averaging 2,174,397 shares for the last 20 days..
Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with HWM.
Over the past two months, 5 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost HWM's consensus estimate, increasing from $4.91 to $5.23 in the past 60 days. Looking at the next fiscal year, 4 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that HWM is a #2 (Buy) stock with a Momentum Score of B. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Howmet on your short list.
Key Takeaways Howmet's defense aerospace revenues rose 11% in Q2 2026, reaching 15% of total revenues.Strong F-35 engine spare demand and fighter jet parts drove defense aerospace growth.Gas turbine revenues surged 38% year over year in Q2, adding another growth opportunity. Howmet Aerospace Inc. (HWM - Free Report) is poised to benefit from the expanding defense budget, which remains an important growth catalyst. Though commercial aerospace continues to be the company’s primary growth driver, the defense aerospace market has also gained momentum, supported by steady government funding. In the second quarter of 2026, revenues from the defense aerospace market increased 11% year over year, accounting for 15% of HWM’s total revenues. In 2025, revenues from this market surged 21% year over year.
The growth was driven by strong demand for engine spares for the F-35 program and spare parts for legacy fighter jets, including the F-15 and F-16. Howmet is also expanding its focus on new programs, particularly in the drone and collaborative combat aircraft markets. With military aircraft programs expected to benefit from increased funding, the company is well-positioned to capture additional defense opportunities and contracts.
In February 2026, the House of Representatives passed the fiscal year 2026 Defense Appropriations Act, providing a total discretionary allocation of $838.7 billion. The increase in military funding bodes well for Howmet’s defense aerospace business and could support top-line growth in the quarters ahead.
Howmet is also benefiting from strong demand for industrial gas turbines. Revenues from the gas turbines market grew 38% year over year in the second quarter, providing another growth opportunity for the company. Strong defense spending, growing demand across military programs and robust industrial gas turbine demand should support Howmet’s growth in the coming quarters.
HWM’s Peers in the Defense SpaceAmong its major peers, Textron Inc.’s (TXT - Free Report) defense businesses continue to benefit from military production, training demand and funded development programs. Textron’s Bell segment’s second-quarter 2026 revenues increased 6% year over year, driven largely by higher H-1 and MV-75 volume, while commercial helicopter deliveries rose to 36 from 32. Textron’s Bell segment completed the first two MV-75 wing structures, with labor hours declining across successive builds.
Its another peer, GE Aerospace’s (GE - Free Report) Defense & Propulsion Technologies business, is benefiting from the rising demand for its propulsion & additive technologies, critical aircraft systems and aftermarket services in the defense sector. In the first half of 2026, GE Aerospace received a contract from Turkish Aerospace Industries (“TAI”) to continue integrating its F404 engine into Türkiye's Hurjet jet trainer. GE Aerospace also clinched a $1.4 billion deal for T408 engines to support the U.S. Marine Corps’ CH-53K helicopter fleet in the same period.
HWM's Price Performance, Valuation and EstimatesShares of Howmet have surged 60% in the past year compared with the industry’s growth of 5.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 49.47X, above the industry’s average of 34.1X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s 2026 earnings has been on the rise over the past 60 days.
Image Source: Zacks Investment Research
The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Buckland Partners Management Co LLC acquired a new position in shares of Howmet Aerospace Inc. (NYSE:HWM – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor acquired 15,000 shares of the company’s stock, valued at approximately $4,033,000. Howmet Aerospace makes up 2.0% of Buckland Partners Management Co LLC’s holdings, making the stock its 14th biggest holding.
Several other hedge funds and other institutional investors also recently made changes to their positions in the company. Bartlett & CO. Wealth Management LLC raised its position in shares of Howmet Aerospace by 55.1% during the second quarter. Bartlett & CO. Wealth Management LLC now owns 107 shares of the company’s stock worth $29,000 after acquiring an additional 38 shares during the last quarter. UMB Bank n.a. increased its position in Howmet Aerospace by 2.6% in the fourth quarter. UMB Bank n.a. now owns 1,620 shares of the company’s stock worth $332,000 after purchasing an additional 41 shares during the period. Tudor Financial Inc. increased its position in Howmet Aerospace by 2.6% in the fourth quarter. Tudor Financial Inc. now owns 1,650 shares of the company’s stock worth $338,000 after purchasing an additional 42 shares during the period. Physician Wealth Advisors Inc. raised its holdings in Howmet Aerospace by 2.5% during the 1st quarter. Physician Wealth Advisors Inc. now owns 1,730 shares of the company’s stock worth $399,000 after purchasing an additional 42 shares during the last quarter. Finally, Roman Butler Fullerton & Co. raised its holdings in Howmet Aerospace by 0.4% during the 1st quarter. Roman Butler Fullerton & Co. now owns 10,537 shares of the company’s stock worth $2,634,000 after purchasing an additional 42 shares during the last quarter. 90.46% of the stock is owned by institutional investors and hedge funds.
Howmet Aerospace Trading Up 0.1% Shares of NYSE HWM opened at $289.37 on Tuesday. The company’s fifty day moving average is $276.89 and its 200-day moving average is $256.96. The stock has a market cap of $115.78 billion, a price-to-earnings ratio of 62.36, a P/E/G ratio of 2.07 and a beta of 1.20. Howmet Aerospace Inc. has a twelve month low of $169.45 and a twelve month high of $310.00. The company has a quick ratio of 0.87, a current ratio of 1.82 and a debt-to-equity ratio of 0.71.
Howmet Aerospace (NYSE:HWM – Get Free Report) last announced its quarterly earnings results on Thursday, August 6th. The company reported $1.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.24 by $0.09. The company had revenue of $2.55 billion during the quarter, compared to analyst estimates of $2.43 billion. Howmet Aerospace had a net margin of 20.52% and a return on equity of 33.91%. The firm’s revenue was up 24.1% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.91 EPS. Howmet Aerospace has set its Q3 2026 guidance at 1.340-1.360 EPS and its FY 2026 guidance at 5.230-5.310 EPS. Equities research analysts predict that Howmet Aerospace Inc. will post 5.33 EPS for the current year. Howmet Aerospace Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, August 25th. Stockholders of record on Friday, August 7th will be issued a dividend of $0.14 per share. This is a boost from Howmet Aerospace’s previous quarterly dividend of $0.12. The ex-dividend date is Friday, August 7th. This represents a $0.56 annualized dividend and a dividend yield of 0.2%. Howmet Aerospace’s dividend payout ratio (DPR) is presently 12.07%.
Analysts Set New Price Targets Several research analysts have recently issued reports on the stock. JPMorgan Chase & Co. raised their target price on shares of Howmet Aerospace from $310.00 to $350.00 and gave the company an “overweight” rating in a research note on Monday, August 10th. UBS Group boosted their price target on shares of Howmet Aerospace from $299.00 to $326.00 and gave the stock a “neutral” rating in a research note on Friday, August 7th. Weiss Ratings lowered shares of Howmet Aerospace from a “buy (b)” rating to a “buy (b-)” rating in a report on Wednesday, August 5th. Susquehanna raised their price objective on shares of Howmet Aerospace from $330.00 to $340.00 and gave the company a “positive” rating in a research note on Friday, August 7th. Finally, Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $320.00 price target on shares of Howmet Aerospace in a research report on Friday, May 8th. One analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Howmet Aerospace currently has an average rating of “Moderate Buy” and a consensus price target of $315.67.
Check Out Our Latest Research Report on HWM
Howmet Aerospace Company Profile (Free Report)
Howmet Aerospace Inc is an industrial technology company that designs, manufactures and repairs engineered metal products for the aerospace, transportation and industrial markets. Its product portfolio includes precision castings and forgings, engineered fasteners, seamless rolled rings, and complex components for turbine engines, airframes and industrial gas turbines. The company also provides aftermarket services such as component repair, overhaul and parts distribution to support the operating fleet of commercial and military customers.
Howmet serves a global customer base of original equipment manufacturers (OEMs) and aftermarket operators, with manufacturing, service and distribution facilities across North America, Europe and Asia.
Featured Articles Five stocks we like better than Howmet Aerospace Commodities Are Booming, But These 3 ETFs Tell Different Stories 3 Active ETFs Making Big Moves in August This ETF Is Outperforming by Avoiding the S&P 500’s Biggest Problem Birkenstock Beats the Skeptics—But Not on EPS Want to see what other hedge funds are holding HWM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Howmet Aerospace Inc. (NYSE:HWM – Free Report).
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Investors might want to bet on Howmet (HWM - Free Report) , as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
Analysts' growing optimism on the earnings prospects of this maker of engineered products for the aerospace and other industries is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- has this insight at its core.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Howmet, there has been strong agreement among the covering analysts in raising earnings estimates, which has helped push consensus estimates considerably higher for the next quarter and full year.
The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate:
12 Month EPS
Current-Quarter Estimate RevisionsThe earnings estimate of $1.33 per share for the current quarter represents a change of +40.0% from the number reported a year ago.
The Zacks Consensus Estimate for Howmet has increased 8.78% over the last 30 days, as three estimates have gone higher compared to no negative revisions.
Current-Year Estimate RevisionsFor the full year, the company is expected to earn $5.23 per share, representing a year-over-year change of +38.7%.
In terms of estimate revisions, the trend for the current year also appears quite encouraging for Howmet. Over the past month, four estimates have moved higher compared to no negative revisions, helping the consensus estimate increase 5.63%.
Favorable Zacks RankThanks to promising estimate revisions, Howmet currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom LineHowmet shares have added 6.2% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects.
Fielder Capital Group LLC bought a new position in Howmet Aerospace Inc. (NYSE: HWM) during the second quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm bought 2,134 shares of the company's stock, valued at approximately $574,000. Other large investors have also recently made
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Howmet (HWM - Free Report) .
Howmet currently has an average brokerage recommendation (ABR) of 1.30, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms. An ABR of 1.30 approximates between Strong Buy and Buy.
Of the 23 recommendations that derive the current ABR, 19 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 82.6% and 4.4% of all recommendations.
Brokerage Recommendation Trends for HWM
Check price target & stock forecast for Howmet here>>>
While the ABR calls for buying Howmet, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in HWM?Looking at the earnings estimate revisions for Howmet, the Zacks Consensus Estimate for the current year has increased 5.6% over the past month to $5.23.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Howmet. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Howmet may serve as a useful guide for investors.
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a growth stock that can live up to its true potential can be a tough task.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, it's pretty easy to find cutting-edge growth stocks with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Our proprietary system currently recommends Howmet (HWM - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Research shows that stocks carrying the best growth features consistently beat the market. And returns are even better for stocks that possess the combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy).
Here are three of the most important factors that make the stock of this maker of engineered products for the aerospace and other industries a great growth pick right now.
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Howmet is 39.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 38.6% this year, crushing the industry average, which calls for EPS growth of 17.2%.
Cash Flow GrowthCash is the lifeblood of any business, but higher-than-average cash flow growth is more beneficial and important for growth-oriented companies than for mature companies. That's because, high cash accumulation enables these companies to undertake new projects without raising expensive outside funds.
Right now, year-over-year cash flow growth for Howmet is 31.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 9.8%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 21.3% over the past 3-5 years versus the industry average of 12.7%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Howmet have been revising upward. The Zacks Consensus Estimate for the current year has surged 5.6% over the past month.
Bottom LineHowmet has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Howmet is a potential outperformer and a solid choice for growth investors.
Key Takeaways Howmet's commercial aerospace revenues surged 28% year over year, reaching 53% of total revenues.Rising air travel is boosting demand for wide-body aircraft, engineered parts and new aircraft spending.Defense aerospace is gaining from F-35 engine spares and higher military spending.
Howmet Aerospace Inc. (HWM - Free Report) continues to gain momentum, with commercial aerospace remaining its strongest growth engine. In the second quarter of 2026, revenues from the commercial aerospace market surged 28% year over year, accounting for 53% of total revenues.
An increase in air travel has led to rising demand for wide-body aircraft and encouraged original equipment manufacturers (OEMs) to increase their spending levels. This uptick in air traffic has been positive for Howmet, as increased aircraft usage leads to higher demand for engineered parts and products it produces. It also encourages airlines to invest more in new aircraft, further boosting HWM’s sales volume.
Rising demand for fuel-efficient aircraft with lower carbon emissions and engine spares has contributed to the growth of the commercial aerospace market as well. Also, with the gradual production recovery of the Boeing 737 MAX aircraft, Howmet is expected to witness increased demand for its products in the market.
Also, HWM’s defense aerospace market continues to show healthy momentum. Rising demand for engine spares, particularly for the F-35 program, along with higher military spending, is supporting steady growth and providing an additional avenue for Howmet’s aerospace business.
HWM’s Peers in Commercial Aerospace MarketAmong its major peers, RTX Corporation (RTX - Free Report) reported 14.5% sales growth in the second quarter of 2026. This growth was largely driven by strength in the commercial aerospace market, where RTX Corp. saw double-digit gains in commercial aftermarket sales. The improvement in commercial aerospace sales boosted RTX’s Collins Aerospace and Pratt & Whitney segments. Rising aircraft utilization and demand for sustainable technologies are supporting RTX Corp.’s growth.
GE Aerospace (GE - Free Report) is benefiting from solid demand for LEAP, GEnx & GE9X engines and services within the Commercial Engines & Services segment. This growth is supported by increasing air traffic, fleet renewal and expansion activities. During the first half of 2026, GE Aerospace secured several major engine orders and service agreements. GE Aerospace’s engine deliveries within this segment surged 26% in the second quarter from the prior-year quarter.
HWM's Price Performance, Valuation and EstimatesShares of Howmet have surged 60% in the past year compared with the industry’s growth of 5.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 50.49X, above the industry’s average of 34.3X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s earnings has been on the rise over the past 60 days.
Image Source: Zacks Investment Research
The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Howmet (HWM - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Howmet is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Howmet imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for HowmetThis maker of engineered products for the aerospace and other industries is expected to earn $5.23 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Howmet. Over the past three months, the Zacks Consensus Estimate for the company has increased 6.2%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Howmet to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Key Takeaways Howmet Aerospace's Q2 revenues rose 24% to $2.55B, while EPS surged 46% year over year.Commercial aerospace revenues jumped 28%, while defense aerospace revenues increased 11%.Howmet Aerospace raised its 2026 revenue outlook to $10-$10.1B and EPS guidance to $5.23-$5.31. Howmet Aerospace Inc. (HWM - Free Report) reported better-than-expected second-quarter 2026 results on Aug. 6. Earnings per share surpassed the Zacks Consensus Estimate by 8.1% and surged 46% year over year.
Total revenues of $2.55 billion surpassed the consensus estimate of $2.41 billion and increased 24% year over year. The second-quarter results benefited from persistent strength in its commercial and defense aerospace markets.
HWM has been reporting strong earnings results courtesy of solid financial and operational performance from its segments. Backed by robust results and improving fundamentals, the company lifted its financial outlook. For 2026, Howmet Aerospace raised its revenue outlook to $10.00-$10.10 billion from $9.575-$9.725 billion. Adjusted EBITDA is now anticipated between $3.21 billion and $3.25 billion, higher than $3.025-$3.095 billion expected earlier. It also raised its adjusted earnings to $5.23-$5.31 per share from $4.88-$5.00.
Factors Contributing to Howmet Aerospace’s PerformanceThe strongest driver of Howmet Aerospace’s business at the moment is the commercial aerospace market. The strength in air travel continues, with both narrow and wide-body aircraft demand picking up, supporting continued OEM spending. Pickup in air travel has been positive for the company as the increased usage of aircraft spurs spending on parts and products that it provides.
In the second quarter of 2026, revenues from the commercial aerospace market surged 28% year over year, constituting 53% of the company’s business. Also, in the first quarter, revenues from the market increased 20% year over year. The sustained strength was attributed to increasing demand for engine spares and a record backlog for new, more fuel-efficient aircraft with reduced carbon emissions. Also, healthy build rates at Airbus for A320 and A350 aircraft, along with a production recovery in the Boeing 737 MAX aircraft, hold promise for HWM’s spare engine demand.
Expanding the defense budget remains another growth catalyst for Howmet Aerospace. The defense aerospace industry has also been witnessing positive momentum, cushioned by steady government support. HWM has been witnessing robust orders for engine spares for the F-35 program and spares for other legacy fighters. In the second quarter, revenues from the defense aerospace market increased 11% year over year, constituting 15% of the company’s revenues.
It's worth noting that the fiscal year 2026 Defense Appropriations Act was signed into law in February 2026, providing a strong budgetary allocation for defense. Such robust provisions set the stage for GE Aerospace, which remains focused on its defense business.
HWM also remains open to strengthening its business through acquisitions. In April 2026, it completed the acquisition of Stanley Black’s business unit, Consolidated Aerospace Manufacturing LLC (“CAM”), for $1.8 billion. CAM’s well-known brands, engineering expertise and strong customer relationships have strengthened its aerospace fastening solutions portfolio.
The company also remains committed to increasing shareholder value through dividend payouts and share repurchases. For instance, in the first six months of the year, it paid dividends worth $97 million. In July 2026, the company hiked its dividend by 17% to 14 cents per share (annually: 56 cents). Also, year to date through July, it repurchased shares worth $800 million.
HWM Shares Outperform Industry, S&P 500 & PeersShares of the company have gained 57.3% in the past year compared with the industry’s and the S&P 500 composite’s growth of 4.7% and 22.8%, respectively. It has also outperformed other industry players like RTX Corporation (RTX - Free Report) and Textron Inc. (TXT - Free Report) , which have returned 44.7% and 12.9%, respectively, over the said time frame.
HWM Stock’s Price Performance
Image Source: Zacks Investment Research
Earnings Estimate RevisionEarnings estimates for HWM have moved north over the past 60 days, reflecting analysts’ optimism.
The Zacks Consensus Estimate for 2026 earnings increased 5.5% to $5.18 per share, suggesting year-over-year growth of 37.4%. The consensus mark for 2027 earnings moved up 3.4% to $6.05 per share, indicating a year-over-year increase of 16.8%. As earnings estimates increase, the stock is likely to follow suit.
Image Source: Zacks Investment Research
Valuation Remains an OverhangThe stock trades at a forward 12-month price-to-earnings (P/E) ratio of 50.98X, higher than the industry average of 34.49X. Also, it is overvalued compared with its peers, RTX Corp. and Textron. Notably, RTX Corp. and Textron are trading at 29.69X and 12.74X, respectively.
Image Source: Zacks Investment Research
Final Take on HWMSolid momentum across the commercial and defense aerospace markets, supported by impressive build rates, spare demand for engines and a robust defense budget, positions Howmet Aerospace favorably for strong growth in the quarters ahead. Built on a sound liquidity position, HWM’s shareholder-friendly policies also add to its appeal.
Despite its expensive valuation, positive analyst sentiment and robust growth prospects indicate it is the right time for potential investors to bet on this Zacks Rank #2 (Buy) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Defense Dividends: 3 Strong Performers That Are Raising PayoutsHowmet Aerospace NYSE: HWM reported second-quarter results that exceeded the high end of its guidance, driven by continued growth in commercial aerospace, gas turbines and defense markets. The company also raised its full-year outlook for revenue, EBITDA, earnings per share and free cash flow.
Revenue rose 24% year over year in the second quarter, including the effects of acquisitions, while organic revenue increased 21%. Adjusted EBITDA increased 39% and EBITDA margin expanded 340 basis points to 32.1%. Adjusted earnings per share rose 46% to $1.33, while free cash flow totaled $479 million during the quarter and approximately $840 million during the first half.
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Why Howmet Could Be the Sleeper Aerospace Name of 2025“Second quarter revenue, EBITDA margin, and earnings per share all exceeded the high end of guidance,” Chief Financial Officer Patrick Winterlich said. The company generated 46% incremental flow-through from revenue to EBITDA, despite what management described as a modest headwind from the CAM Fastener acquisition.
End-Market Growth Led by Aerospace and Gas Turbines Commercial aerospace revenue increased 28%, or 26% organically, as demand grew for both original-equipment production and spare parts. Howmet said it continued to experience higher demand for spares on legacy and next-generation aircraft engines.
5 Aerospace & Defense Stocks Ready for LiftoffDefense aerospace revenue increased 11%, or 7% organically, supported by spare-parts activity and higher legacy fighter demand. Gas turbine revenue climbed 38%, with management attributing the increase to rising electricity-generation demand, particularly for natural-gas-powered data centers.
Total spare-parts revenue across commercial aerospace, defense aerospace and gas turbines rose 37% to approximately $560 million. Spares represented about 22% of total revenue through the first half of 2026, a greater share than historically.
Commercial transportation revenue rose 12%, largely reflecting higher aluminum-cost pass-through. Wheel volumes declined 8% from a year earlier but increased 7% sequentially as the North American market began to recover.
Executive Chairman and CEO John Plant said Howmet had not experienced any changes in customer demand amid Middle East conflict-related volatility in fuel prices and air traffic. He said aircraft orders and backlogs continued to grow, supporting expectations for higher build rates through 2026, 2027 and beyond.
Segment Results and CAM Integration Engine Products revenue increased 32% to $1.37 billion. Commercial aerospace revenue in the segment rose 37%, defense aerospace increased 17%, and gas turbine revenue grew 38%. EBITDA increased 51% to $517 million, while EBITDA margin rose 470 basis points to 37.7%. The segment added approximately 485 net new employees during the quarter as it increased capacity for future growth.
Fastening Systems revenue rose 37% to $589 million, including contributions from the CAM and Brunner acquisitions. Commercial aerospace revenue increased 39%, defense aerospace grew 45%, and commercial transportation revenue was flat. EBITDA rose 40% to $177 million, and margin increased 90 basis points to 30.1%.
Howmet completed its acquisition of CAM Fastener on April 6 for approximately $1.8 billion. Winterlich said the integration was on track. Plant said the company spent the initial months addressing IT systems, cybersecurity capabilities, employee benefits and asset-base needs. Management expects some operating synergies to begin appearing during the second half, with the majority expected in 2027.
Plant said CAM had been a roughly 20% margin business before being acquired, compared with about 30% for Howmet’s legacy fastening operations. He said the acquisition was expected to be approximately breakeven for earnings per share in 2026 due to debt servicing, before becoming accretive in 2027 and beyond.
Engineered Structures revenue declined 13% to $269 million following the March 31 divestiture of the Savannah Disc forging facility. Excluding the divestiture, revenue was approximately flat. The segment’s EBITDA margin increased 170 basis points to 23.8%.
Forged Wheels revenue increased 14%, as higher aluminum pass-through more than offset lower volumes. EBITDA rose 16% to $88 million. Management said higher metal pass-through reduced the segment’s margin percentage but did not have a material effect on EBITDA dollars.
Capacity Investments Target Future Demand Plant said Howmet holds more than 50% global market share in industrial gas turbine blades and is expanding capacity in Japan, Europe and Virginia. The company has completed negotiations with its seven major gas turbine customers, though some have already sought to revisit and increase their demand outlooks.
Management expects capital expenditures to exceed $500 million in 2026 and to rise further in 2027, supporting both industrial gas turbines and commercial aerospace. Plant said new commitments made in August 2026 would generally not produce capacity until approximately August 2028 because of equipment lead times.
The company is also increasing aerospace capacity, including a newly approved plant investment. Plant said demand is beginning to build for higher wide-body production rates, including Boeing 787 production and Airbus A350 output.
On engine technology transitions, Plant said the LEAP-1B cutover to a new-technology blade had not yet occurred, although production should increase during the second half. He said the transition would likely occur in the first quarter or first half of 2027, though the date was not fixed. Howmet is also increasing output for the GTF Advantage program, with larger production gains expected through 2027.
Capital Returns and Raised Outlook Howmet repurchased $300 million of stock during the second quarter at an average price of $251 per share, followed by another $200 million in July at an average price of $277. Year-to-date repurchases reached $800 million at an average price of $248 per share. About $700 million remained under the board’s authorization.
The company also retired $186 million of debt during the quarter and entered into a cross-currency swap that management said would save about $12 million in annualized interest expense. Net debt to trailing EBITDA ended the quarter at 1.4 times following the CAM acquisition. Plant said the company expects leverage to return to approximately one times by year-end.
Howmet raised its quarterly dividend 17% to $0.14 per share, payable in August.
Third-quarter revenue guidance: $2.75 billion, plus or minus $10 million Third-quarter EBITDA guidance: $830 million, plus or minus $5 million Third-quarter EPS guidance: $1.35, plus or minus $0.01 Full-year revenue guidance: $10.05 billion, plus or minus $50 million Full-year EBITDA guidance: $3.23 billion, plus or minus $20 million Full-year EPS guidance: $5.27, plus or minus $0.04 Full-year free-cash-flow guidance: $1.9 billion, plus or minus $50 million Plant said the company expects to provide its first view of 2027 revenue during its third-quarter earnings call in November, adding that 2027 revenue is expected to increase from 2026 levels.
About Howmet Aerospace (NYSE:HWM)Howmet Aerospace Inc is an industrial technology company that designs, manufactures and repairs engineered metal products for the aerospace, transportation and industrial markets. Its product portfolio includes precision castings and forgings, engineered fasteners, seamless rolled rings, and complex components for turbine engines, airframes and industrial gas turbines. The company also provides aftermarket services such as component repair, overhaul and parts distribution to support the operating fleet of commercial and military customers.
Howmet serves a global customer base of original equipment manufacturers (OEMs) and aftermarket operators, with manufacturing, service and distribution facilities across North America, Europe and Asia.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Key Takeaways Howmet raised 2026 guidance after Q2 revenue rose 24% and adjusted EPS reached $1.33.Gas turbine revenue jumped 38% as Howmet expands capacity for demand extending beyond 2026.Gas turbine revenue jumped 38% as Howmet expands capacity for demand extending beyond 2026. Howmet Aerospace Inc. (HWM - Free Report) used its second-quarter call to emphasize capacity expansion across commercial aerospace and industrial gas turbines, where customer demand is extending beyond 2026.
Alongside higher full-year guidance, executives highlighted spares activity, 2027 capital needs and CAM integration, while analysts focused on how quickly Howmet can add capacity without overbuilding.
HWM Raises 2026 Outlook Across the BoardSecond-quarter revenue of $2.55 billion topped the $2.41 billion Zacks Consensus Estimate, while adjusted earnings of $1.33 per share exceeded the $1.23 Zacks Consensus Estimate. Revenue rose 24% year over year, with organic growth of 21%.
Executive chairman and CEO John Plant raised full-year guidance baselines to revenue of $10.05 billion, adjusted EBITDA of $3.23 billion, adjusted earnings of $5.27 per share and free cash flow of $1.9 billion.
Plant set third-quarter guidance baselines at revenue of $2.575 billion, adjusted EBITDA of $830 million and adjusted earnings of $1.35 per share, while incorporating normal third-quarter seasonality.
Howmet Builds for Multi-Year IGT DemandExecutive vice president and CFO Patrick Winterlich said gas turbine revenue rose 38% as electricity-generation demand, especially from natural gas for data centers, remained strong.
A Jefferies analyst pressed on competitive positioning. Executive chairman and CEO John Plant said Howmet holds more than 50% global share in industrial gas turbine blades and is expanding in Japan, Europe and Virginia.
A Bernstein analyst asked how quickly the company can respond. Plant said a new equipment commitment made now would take about two years to arrive, with larger additions extending through 2028, 2029 and 2030.
HWM Adds Aerospace Capacity for Higher RatesExecutive chairman and CEO John Plant said aircraft backlogs support higher build rates through the balance of 2026, into 2027 and beyond. Howmet also committed to another commercial aerospace plant expansion shortly before the call.
A Vertical Research analyst asked about wide-body production. Plant said Boeing 787 demand is moving toward Rate 10, while Airbus A350 production could move from roughly five or six per month to eight or nine over the next year.
An RBC Capital Markets analyst questioned supply-chain capacity. Plant stressed that Howmet will add capacity, but will monitor demand durability and avoid investing around a single-year peak.
Howmet Sees Spares Strength With Defense UpsideExecutive vice president and CFO Patrick Winterlich said commercial aerospace revenue increased 28%, including 26% organic growth, while defense aerospace rose 11%. Total spares revenue increased 37% to about $460 million.
A Melius Research analyst asked whether recent military utilization was already lifting demand. Executive chairman and CEO John Plant said Howmet had not seen an order increase from additional missions, though customer discussions point to stronger spares requirements in 2027.
Plant added that missile customers are asking Howmet to consider rate increases across several programs. No formal incremental orders were in hand, leaving demand durability to be resolved before dedicated capacity is added.
HWM Maps CAM Synergies and Capital ReturnsA Baird analyst focused on CAM integration. Executive chairman and CEO John Plant said early work centered on IT systems, employee benefits and the asset base, with some purchasing benefits expected in the second half of 2026 and most synergies in 2027.
Plant said CAM is expected to be about neutral to earnings per share in 2026 before contributing positively in 2027. Fastening Systems adjusted EBITDA margin was 30.1%.
A Citigroup analyst asked about cash deployment. Plant said Howmet is open to additional bolt-on M&A and expects 2027 share repurchases to exceed 2026 levels. Through July, repurchases totaled $800 million.
Howmet Keeps Investment Discipline in FocusExecutive chairman and CEO John Plant balanced demand-driven expansion with caution on end-market durability. He said capital expenditures will exceed $500 million in 2026 and rise again in 2027 to support aerospace and gas turbine capacity.
Plant maintained a 90% free-cash-flow conversion target and said Howmet expects to provide its first 2027 revenue outlook in November, with revenue anticipated to increase from 2026.
HWM Zacks Rank and Style Score SignalsHWM carries a Zacks Rank #2 (Buy), a favorable near-term rank in the Zacks framework. Its Growth Score of B is stronger than its Momentum Score of C, Value Score of F and VGM Score of D. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Style Scores complement the Zacks Rank, with A and B grades preferred for the relevant style. The current Zacks Rank can change as earnings estimates are revised following the just-reported results.
Howmet Aerospace Inc. (NYSE:HWM) reported better-than-expected second-quarter results Thursday and raised its full-year outlook, sending the stock higher following the release.
Shares gained as investors responded to the earnings and revenue beats, stronger margins, robust cash generation and increased 2026 guidance.
Adjusted earnings were $1.33 a share, beating the $1.25 estimate.
Revenue rose 24% year over year to $2.547 billion, above the $2.428 billion estimate. Organic growth was 21%, while GAAP EPS increased to $1.33 from $1 a year earlier.
• Howmet Aerospace stock is showing upward bias. What should traders watch with HWM?
Profitability and Market GrowthAdjusted EBITDA rose 39% to $817 million, with margin expanding 340 basis points to 32.1%. GAAP operating income increased 36% to $711 million, and operating margin improved to 27.9%.
Management said key results exceeded the high end of guidance.
Commercial aerospace revenue grew 28%, gas turbines rose 38% and defense aerospace increased 11%.
Management cited record aircraft backlogs, higher engine spares demand and strength in defense and gas turbines, while commercial transportation began to recover.
Segment PerformanceEngine Products revenue rose 32% to $1.373 billion. Adjusted EBITDA increased 51% to $517 million, and margin reached 37.7%.
Fastening Systems revenue grew 37% to $589 million, including contributions from the CAM and Brunner acquisitions. Adjusted EBITDA rose 40% to $177 million, with a 30.1% margin.
Engineered Structures revenue declined 13% to $269 million following the Savannah disk forging facility divestiture and product rationalization.
Adjusted EBITDA fell 6% to $64 million, though margin improved to 23.8%. Forged Wheels revenue increased 14% to $316 million despite an 8% volume decline, while adjusted EBITDA rose 16% to $88 million.
Cash Flow and Capital ReturnsOperating cash flow was $583 million, while free cash flow totaled $479 million. Ending cash, cash equivalents and restricted cash were $564 million.
Reported borrowings were about $4.5 billion, and net debt-to-LTM adjusted EBITDA stood at 1.4 times.
Howmet repaid $186 million of debt, repurchased $300 million of stock during the quarter and another $200 million in July. It also increased its quarterly dividend 17% to 14 cents a share.
Raised Full-Year OutlookHowmet raised full-year adjusted EPS guidance to $5.23-$5.31 from $4.88-$5, above the $5.06 estimate.
The company increased sales guidance to $10 billion-$10.1 billion from $9.575 billion-$9.725 billion, above the $9.753 billion estimate. It projected free cash flow of $1.85 billion-$1.95 billion.
Howmet identified tariffs, trade policies, energy costs, supply-chain disruption and regulatory risks as potential headwinds.
HWM Price Action: Howmet Aerospace shares were up 0.21% at $292.02 at the time of publication on Thursday. The stock traded at a new 52-week high earlier in the day, according to Benzinga Pro data.
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Key Takeaways Howmet Aerospace's Q2 adjusted EPS rose 46% to $1.33, while revenues climbed 24% to $2.55 billion.HWM's Engine Products revenues jumped 32%, with adjusted EBITDA up 51% and margin reaching 37.7%.Howmet Aerospace raised 2026 revenue guidance to $10.00-$10.10 billion and EPS to $5.23-$5.31. Howmet Aerospace Inc. (HWM - Free Report) reported second-quarter 2026 adjusted earnings of $1.33 per share, up 46% year over year. The figure beat the Zacks Consensus Estimate of $1.23.
Revenues of $2.55 billion increased 24% year over year and surpassed the consensus mark of $2.41 billion. Organic growth was 21%, supported by commercial aerospace, defense aerospace and gas turbine demand.
HWM's Commercial Markets Fuel Revenue GrowthCommercial aerospace revenues rose 28% year over year and represented 53% of total revenues. Growth reflected stronger aircraft production activity and increasing demand for engine spare parts.
Gas turbine revenues advanced 38% and accounted for 13% of the total. Defense aerospace revenues increased 11%, while commercial transportation revenues rose 12%. Other-market revenues grew 39%.
Howmet Aerospace's Engine Products Posts Strong GainsEngine Products generated revenues of $1.37 billion, accounting for 53.9% of consolidated revenues. Segment revenues increased 32% year over year, driven by commercial aerospace, defense aerospace and gas turbine demand.
Segment adjusted EBITDA climbed 51% to $517 million. The adjusted EBITDA margin expanded 470 basis points to 37.7%. Howmet Aerospace added approximately 485 net employees in the segment during the quarter to support expected revenue growth.
HWM's Fastening Systems Gets Acquisition LiftFastening Systems revenues increased 37% year over year to $589 million, representing 23.1% of total revenues. Results benefited from commercial and defense aerospace growth as well as contributions from the CAM and Brunner acquisitions.
Segment adjusted EBITDA rose 40% to $177 million. The adjusted EBITDA margin improved 90 basis points to 30.1%, reflecting higher demand, acquisition contributions and sustained productivity gains.
Howmet Aerospace's Other Segments Show Mixed TrendsEngineered Structures revenues declined 13% to $269 million due to the divestment of the Savannah disk forging facility and product rationalization. Segment adjusted EBITDA decreased 6% to $64 million, while the margin increased 170 basis points to 23.8% following the exit of lower-margin business.
Forged Wheels revenues rose 14% to $316 million as aluminum and other inflation-related cost pass-through more than offset an 8% decline in commercial transportation volumes. Volumes improved 7% on a sequential basis. Segment adjusted EBITDA increased 16% to $88 million, with the margin edging up 30 basis points to 27.8%.
HWM's Margin Expansion Supports ProfitabilityAdjusted EBITDA increased 39% year over year to $817 million. The adjusted EBITDA margin expanded 340 basis points to 32.1%, supported by growth across major aerospace and gas turbine markets.
Adjusted operating income rose 41% to $733 million. The adjusted operating margin improved 350 basis points to 28.8%. Cost of goods sold increased 16.9% to $1.60 billion, while selling, general, administrative and other expenses rose to $148 million from $89 million.
Howmet Aerospace's Cash Flow Backs Capital DeploymentHowmet Aerospace generated $583 million in cash from operations during the quarter, up 31% year over year. Capital expenditures were $104 million, resulting in free cash flow of $479 million, up 39% year over year.
The company repurchased $300 million of common stock during the quarter and another $200 million in July. Through July, repurchases totaled $800 million. Howmet Aerospace also increased its third-quarter dividend 17% to 14 cents per share.
HWM Raises 2026 GuidanceFor the third quarter of 2026, HWM expects revenues of $2.565-$2.585 billion. Adjusted EBITDA is projected between $825 million and $835 million, while adjusted earnings are expected in the range of $1.34-$1.36 per share.
For 2026, Howmet Aerospace raised its revenue outlook to $10.00-$10.10 billion. Adjusted EBITDA is now anticipated between $3.21 billion and $3.25 billion, with adjusted earnings projected at $5.23-$5.31 per share. Free cash flow is expected in the range of $1.85-$1.95 billion.
Zacks Rank and Other Stocks to ConsiderThe company currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks are discussed below:
Applied Industrial Technologies (AIT - Free Report) carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Applied Industrial’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 4.0%. In the past 60 days, the Zacks Consensus Estimate for Applied Industrial’s fiscal 2026 bottom line has inched up 0.1%.
IDEX Corporation (IEX - Free Report) presently carries a Zacks Rank of 2. IDEX’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 7.7%. In the past 60 days, the Zacks Consensus Estimate for IEX’s 2026 earnings has increased 1.4%.
The Middleby Corporation (MIDD - Free Report) currently carries a Zacks Rank of 2. Middleby’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 10.4%. In the past 60 days, the Zacks Consensus Estimate for MIDD’s 2026 earnings has increased 0.3%.
For the quarter ended March 2026, Howmet (HWM - Free Report) reported revenue of $2.31 billion, up 19.1% over the same period last year. EPS came in at $1.22, compared to $0.86 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $0 million, representing no surprise. The company delivered an EPS surprise of +9.91%, with the consensus EPS estimate being $1.11.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Howmet performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Adjusted EBITDA- Engine Products: $517 million compared to the $466.58 million average estimate based on two analysts.Adjusted EBITDA- Forged Wheels: $88 million versus the two-analyst average estimate of $86.32 million.Adjusted EBITDA- Engineered Structures: $64 million compared to the $63.28 million average estimate based on two analysts.Adjusted EBITDA- Fastening Systems: $177 million versus $176.6 million estimated by two analysts on average.View all Key Company Metrics for Howmet here>>>
Shares of Howmet have returned +7.3% over the past month versus the Zacks S&P 500 composite's +3.3% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
Revenue up 24% Year over Year, Organic Growth 21%; GAAP EPS $1.33, Adjusted EPS $1.33
Strong Second Quarter Cash Generation; $300 Million Deployed for Common Stock Repurchases
Full Year 2026 Guidance Increased
Summary Financial Results
Second Quarter
Six Months
Dollars in Millions; Per share amounts in dollars, diluted
2026
2025
Change
2026
2025
Change
Revenue
$2,547
$2,053
24 %
$4,860
$3,995
22 %
GAAP Metrics
Operating Income
$711
$521
36 %
$1,464
$1,015
44 %
Operating Income Margin
27.9 %
25.4 %
250 bps
30.1 %
25.4 %
470 bps
Earnings per Share (EPS)
$1.33
$1.00
33 %
$2.77
$1.84
51 %
Cash from Operations
$583
$446
31 %
$1,036
$699
48 %
Non-GAAP Metrics1
Adjusted EBITDA
$817
$589
39 %
$1,557
$1,149
36 %
Adjusted EBITDA Margin
32.1 %
28.7 %
340 bps
32.0 %
28.8 %
320 bps
Adjusted Operating Income
$733
$520
41 %
$1,399
$1,011
38 %
Adjusted Operating Income Margin
28.8 %
25.3 %
350 bps
28.8 %
25.3 %
350 bps
Adjusted Earnings per Share (EPS)
$1.33
$0.91
46 %
$2.56
$1.77
45 %
Free Cash Flow
$479
$344
39 %
$838
$478
75 %
1 For more information, see "Non-GAAP Financial Measures" and the schedules to this release.
Key Activity
Completed acquisition of CAM on April 6, 2026 for approximately $1.8 billion Paid down the Company's $186 million Japanese Yen-denominated term loan facility and entered into a separate $300 million cross-currency swap, reducing annualized interest expense by $12 million Increased the third quarter common stock dividend by 17% to $0.14 per share , /PRNewswire/ -- Howmet Aerospace (NYSE: HWM) announced results today for the second quarter 2026.
Howmet Aerospace Executive Chairman and Chief Executive Officer John Plant said, "The Howmet team delivered a strong set of results, with revenue, adjusted EBITDA, adjusted EBITDA margin, and adjusted earnings per share all exceeding the high end of guidance. Revenue growth was healthy at 24% year over year and 21% excluding the net impact of the three asset transactions completed this year. Adjusted EBITDA margin expanded 340 basis points year over year to 32.1%, including the absorption of the CAM fastener acquisition in April. Free cash flow performance was excellent at $479 million after $104 million in capital expenditures, supporting the future growth rate of the Company. The free cash flow also enabled $800 million in common stock repurchases year to date through July, an amount already greater than total repurchases in 2025."
Mr. Plant continued, "Looking ahead, Howmet is well positioned, with all our major markets in growth mode. More robust build rates for commercial aircraft are supported by record backlogs, while engine spares needs continue to increase. Defense markets remain healthy, and the focus for missiles, drones and collaborative combat aircraft continues with growth expected over the medium term. Demand in the gas turbines market is extraordinary with customers already revisiting and adding to their demand outlooks. The commercial transportation market has begun to recover, as anticipated."
"Our capital expenditure requirements continue to increase, and we already see the need to increase this further in 2027 to support future organic growth expectations in both the aerospace and gas turbines markets. We closed the CAM acquisition in April, and the integration is on track. Continued healthy cash generation will allow us to achieve pre-CAM leverage levels in short order, with the Company well positioned to consider all paths of capital deployment optionality going forward."
2026 Guidance
Dollars in Millions; Per share amounts
in dollars, diluted
Q3 2026 Guidance
FY 2026 Guidance
Low
Baseline
High
Low
Baseline
High
Revenue
$2,565
$2,575
$2,585
$10,000
$10,050
$10,100
Baseline
Change
+$400
Adj. EBITDA1
$825
$830
$835
$3,210
$3,230
$3,250
Adj. EBITDA Margin1
32.2 %
32.2 %
32.3 %
32.1 %
32.1 %
32.2 %
Baseline
Change
+$170
+ 40 bps
Adj. Earnings per Share1
$1.34
$1.35
$1.36
$5.23
$5.27
$5.31
Baseline
Change
+$0.33
Free Cash Flow1
$1,850
$1,900
$1,950
Baseline
Change
+$150
1 Reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures, as well as the directly comparable GAAP measures, are not available without unreasonable efforts due to the variability and complexity of the charges and other components excluded from the non-GAAP measures, such as gains or losses on sales of assets, taxes, and any future restructuring or impairment charges. In addition, there is inherent variability already included in the GAAP measures, including, but not limited to, price/mix and volume. Howmet Aerospace believes such reconciliations would imply a degree of precision that would be confusing or misleading to investors.
Consolidated Results
Howmet Aerospace reported second quarter 2026 revenue of $2.55 billion, up 24% year over year with organic growth of 21%, and Adjusted EPS of $1.33, up 46% year over year. Revenue was driven by 28% growth in the commercial aerospace market, 11% growth in the defense aerospace market and 38% growth in the gas turbines market.
The Company reported adjusted EBITDA of $817 million, up 39% year over year. The year-over-year increase was driven by strong growth in the commercial aerospace, defense aerospace, and gas turbines markets. Adjusted EBITDA margin was up approximately 340 basis points year over year at 32.1%.
Segment Results
Engine Products
Dollars in Millions
Second Quarter
2026
2025
Change
Third-party sales
$1,373
$1,038
32 %
Segment adjusted EBITDA
$517
$343
51 %
Segment adjusted EBITDA margin
37.7 %
33.0 %
470 bps
Provision for depreciation and amortization
$42
$35
Engine Products reported second quarter 2026 revenue of $1.37 billion, an increase of 32% year over year, driven by growth in the commercial aerospace, defense aerospace, and gas turbines markets. Segment Adjusted EBITDA was $517 million, up 51% year over year, driven by growth in the commercial aerospace, defense aerospace, and gas turbines markets. The Segment absorbed approximately 485 net headcount in the quarter in support of expected revenue increases. Segment Adjusted EBITDA margin increased approximately 470 basis points year over year to 37.7%.
Fastening Systems
Dollars in Millions
Second Quarter
2026
2025
Change
Third-party sales
$589
$431
37 %
Segment adjusted EBITDA
$177
$126
40 %
Segment adjusted EBITDA margin
30.1 %
29.2 %
90 bps
Provision for depreciation and amortization
$20
$12
Fastening Systems reported revenue of $589 million, an increase of 37% year over year, driven by growth in the commercial aerospace and defense aerospace markets. Revenue includes the impacts from the CAM and Brunner acquisitions. Segment Adjusted EBITDA was $177 million, up 40% year over year, driven by growth in the commercial aerospace and defense aerospace markets and including contributions from the acquisitions. Segment Adjusted EBITDA margin increased approximately 90 basis points year over year to 30.1%.
Engineered Structures
Dollars in Millions
Second Quarter
2026
2025
Change
Third-party sales
$269
$308
(13 %)
Segment adjusted EBITDA
$64
$68
(6 %)
Segment adjusted EBITDA margin
23.8 %
22.1 %
170 bps
Provision for depreciation and amortization
$11
$10
Engineered Structures reported revenue of $269 million, a decrease of 13% year over year, driven by the divestiture of the Savannah disk forging facility and product rationalization. Segment Adjusted EBITDA was $64 million, a decrease of 6% year over year on the exit of lower-margin business including the divestiture. Segment Adjusted EBITDA margin increased approximately 170 basis points year over year to 23.8%.
Forged Wheels
Dollars in Millions
Second Quarter
2026
2025
Change
Third-party sales
$316
$276
14 %
Segment adjusted EBITDA
$88
$76
16 %
Segment adjusted EBITDA margin
27.8 %
27.5 %
30 bps
Provision for depreciation and amortization
$10
$10
Forged Wheels reported revenue of $316 million, an increase of 14% year over year, with 8% lower volumes in the commercial transportation market more than offset by an increase in aluminum and other inflationary cost pass through. Volumes increased 7% sequentially from the first quarter 2026, reflecting the beginning of the recovery of the North American commercial transportation market. Segment Adjusted EBITDA was $88 million and increased 16% year over year, driven by cost reductions, including lower net headcount, in response to lower volumes. Segment Adjusted EBITDA margin increased approximately 30 basis points year over year to 27.8% despite the impact of higher aluminum cost pass through.
Completed Acquisition of CAM for Approximately $1.8 Billion
On April 6, 2026, the Company completed the acquisition of Consolidated Aerospace Manufacturing, LLC (CAM) for approximately $1.8 billion from Stanley Black & Decker, Inc. CAM is a leading global designer and manufacturer of precision fasteners, fluid fittings, and other complex, highly engineered products for demanding aerospace and defense applications.
Debt Actions in Second Quarter Reduce Annualized Interest Expense by Approximately $12 Million
On May 22, 2026, the Company repaid the outstanding principal amount of its Japanese Yen-denominated, senior unsecured term loan facility for approximately $186 million with cash on hand. The Company also entered into a cross-currency swap to synthetically convert the outstanding $300 million aggregate principal amount of its 6.75% Bonds due 2028 into a Japanese Yen liability for a fixed interest rate of approximately 3.88%. The combined effect of these debt actions will reduce annualized interest expense by $12 million.
Repurchased $300 Million of Common Stock in Second Quarter 2026; $200 Million in July 2026
In the second quarter 2026, Howmet Aerospace repurchased $300 million of common stock at an average price of $250.61 per share, retiring approximately 1.2 million shares. In July 2026, the Company repurchased an additional $200 million of common stock at an average price of $276.61 per share, retiring approximately 0.7 million shares. Year to date through July, the Company has repurchased $800 million of shares at an average price of $248.29 per share, exceeding the $700 million of shares repurchased in all of 2025. As of August 6, 2026, total share repurchase authorization available was $697 million.
Quarterly Common Stock Dividend Increases 17% to $0.14 Per Share in Third Quarter 2026
On July 27, 2026, the Board of Directors declared a dividend of $0.14 per share on its common stock to be paid on August 25, 2026 to holders of record as of the close of business on August 7, 2026. The quarterly dividend represents a 17% increase from the second quarter 2026 dividend of $0.12 per share.
Howmet Aerospace will hold its quarterly conference call at 10:00 AM Eastern Time on Thursday, August 6, 2026. The call will be webcast via www.howmet.com. The press release and presentation materials will be available at approximately 7:00 AM ET on August 6, via the "Investors" section of the Howmet Aerospace website.
About Howmet Aerospace
Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace, gas turbine, and transportation industries. The Company's primary businesses focus on engine components, fastening systems, and airframe structural components necessary for mission-critical performance and efficiency, including in aerospace, defense, and gas turbine applications, as well as forged aluminum wheels for commercial transportation. With approximately 1,200 granted and pending patents, the Company's differentiated technologies enable lighter, more fuel-efficient aircraft and commercial trucks to operate with a lower carbon footprint. For more information, visit www.howmet.com.
Dissemination of Company Information
Howmet Aerospace intends to make future announcements regarding Company developments and financial performance through its website at www.howmet.com.
Forward-Looking Statements
This release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as "anticipates," "believes," "could," "envisions," "estimates," "expects," "forecasts," "goal," "guidance," "intends," "may," "outlook," "plans," "poised," "projects," "seeks," "sees," "should," "targets," "will," "would," or other words of similar meaning. All statements that reflect Howmet Aerospace's expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements, forecasts and outlook relating to the condition of markets; future financial results or operating performance; future strategic actions; Howmet Aerospace's strategies, outlook, and business and financial prospects; any future dividends, debt issuances, debt reduction and repurchases of its common stock; and statements regarding any acquisitions, including expected benefits. These statements reflect beliefs and assumptions that are based on Howmet Aerospace's perception of historical trends, current conditions and expected future developments, as well as other factors Howmet Aerospace believes are appropriate in the circumstances. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and changes in circumstances that are difficult to predict, which could cause actual results to differ materially from those indicated by these statements. Such risks and uncertainties include, but are not limited to: (a) deterioration in global economic and financial market conditions generally, or unfavorable changes in the markets served by Howmet Aerospace, including due to escalating tariff and other trade policies and energy costs, and the resulting impacts on Howmet Aerospace's supply and distribution chains, as well as on market volatility and global trade generally; (b) the impact of potential cyber attacks and information technology or data security breaches; (c) the loss of significant customers or adverse changes in customers' business or financial conditions; (d) manufacturing difficulties or other issues that impact product performance, quality or safety; (e) inability of suppliers to meet obligations due to supply chain disruptions or otherwise; (f) failure to attract and retain a qualified workforce and key personnel, labor disputes or other employee relations issues; (g) the inability to achieve anticipated or targeted financial performance, operations or competitiveness, or realization of expected benefits from acquisitions, including the effective integration of acquired businesses; (h) inability to meet increased demand, production targets or commitments; (i) competition from new product offerings, disruptive technologies or other developments; (j) geopolitical, economic, and regulatory risks relating to Howmet Aerospace's global operations, including geopolitical and diplomatic tensions, instabilities, conflicts and wars, as well as compliance with U.S. and foreign trade and tax laws, sanctions, embargoes and other regulations; (k) the outcome of contingencies, including legal proceedings, government or regulatory investigations, and environmental remediation; (l) failure to comply with government contracting regulations; (m) adverse changes in discount rates or investment returns on pension assets; and (n) the other risk factors summarized in Howmet Aerospace's Form 10-K for the year ended December 31, 2025 and other reports filed with the U.S. Securities and Exchange Commission. Market projections are subject to the risks discussed above and other risks in the market. Under its share repurchase program, the Company may repurchase shares from time to time, in amounts, at prices, and at such times as the Company deems appropriate, subject to market conditions, legal requirements and other considerations. The Company is not obligated to repurchase any specific number of shares or to do so at any particular time. The declaration of any future dividends is subject to the discretion and approval of the Board of Directors after the Board's consideration of all factors it deems relevant and subject to applicable law. The Company may modify, suspend, or cancel its share repurchase program or any dividend policy in any manner and at any time that it may deem necessary or appropriate. Credit ratings are not a recommendation to buy or hold any Howmet Aerospace securities, and they may be revised or revoked at any time at the sole discretion of the credit rating organizations. The statements in this release are made as of the date of this release, even if subsequently made available by Howmet Aerospace on its website or otherwise. Howmet Aerospace disclaims any intention or obligation to update publicly any forward-looking statements, whether in response to new information, future events, or otherwise, except as required by applicable law.
Non-GAAP Financial Measures
Some of the information included in this release is derived from Howmet Aerospace's consolidated financial information but is not presented in Howmet Aerospace's financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Certain of these data are considered "non-GAAP financial measures" under SEC rules. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. Reconciliations to the most directly comparable GAAP financial measures and management's rationale for the use of the non-GAAP financial measures can be found in the schedules to this release.
Adjusted EBITDA is defined as Operating Income excluding Restructuring and other (credits) charges, Special Items and provision for depreciation and amortization.
Other Information
In this press release, the acronym "FY" means "full year"; "Q" means "quarter"; "YoY" means year over year; "Adj." means adjusted; Howmet, Howmet Aerospace, or the Company means Howmet Aerospace Inc.; "organic growth" refers to the Company's revenue growth excluding the impact of acquisitions and divestitures; and references to performance by Howmet Aerospace or its segments as "record" mean its best result since April 1, 2020 when Howmet Aerospace Inc. (previously named Arconic Inc.) separated from Arconic Corporation.
Howmet Aerospace Inc. and subsidiaries
Statement of Consolidated Operations (unaudited)
(in U.S. dollar millions, except per-share and share amounts)
Quarter ended
June 30, 2026
March 31, 2026
June 30, 2025
Sales
$ 2,547
$ 2,313
$ 2,053
Cost of goods sold (exclusive of expenses below)
1,596
1,459
1,365
Selling, general administrative, and other expenses
148
111
89
Research and development expenses
8
9
9
Provision for depreciation and amortization
84
74
69
Restructuring and other credits
—
(93)
—
Operating income
711
753
521
Interest expense, net
51
43
38
Other expense, net
11
2
14
Income before income taxes
649
708
469
Provision for income taxes
115
128
62
Net income
$ 534
$ 580
$ 407
Amounts Attributable to Howmet Aerospace
Common Shareholders:
Earnings per share - basic(1):
Net income per share
$ 1.33
$ 1.45
$ 1.01
Average number of shares(2)(3)
400
401
404
Earnings per share - diluted(1):
Net income per share
$ 1.33
$ 1.44
$ 1.00
Average number of shares(2)(3)
402
403
406
Common stock outstanding at the end of the period
400
401
404
(1)
In order to calculate both basic and diluted earnings per share through December 31, 2025, preferred stock dividends declared of less than $1 for the quarters presented need to be subtracted from Net income.
(2)
For the quarters presented, the difference between the diluted average number of shares and the basic average number of shares relates to share equivalents associated with outstanding restricted stock unit awards and employee stock options.
(3)
As average shares outstanding are used in the calculation of both basic and diluted earnings per share, the full impact of share repurchases is not fully realized in earnings per share ("EPS") in the period of repurchase since share repurchases may occur at varying points during a period.
Howmet Aerospace Inc. and subsidiaries
Consolidated Balance Sheet (unaudited)
(in U.S. dollar millions)
June 30, 2026
December 31, 2025
Assets
Current assets:
Cash and cash equivalents
$ 563
$ 742
Receivables from customers, less allowances of $— in both 2026 and 2025
1,040
779
Inventories
2,183
1,849
Prepaid expenses and other current assets
407
409
Total current assets
4,193
3,779
Properties, plants, and equipment, net
2,817
2,593
Goodwill
5,084
4,022
Deferred income taxes
48
40
Intangibles, net
869
457
Other noncurrent assets
240
288
Total assets
$ 13,251
$ 11,179
Liabilities
Current liabilities:
Accounts payable, trade
$ 1,149
$ 845
Accrued compensation and retirement costs
304
343
Taxes, including income taxes
87
77
Accrued interest payable
62
47
Deferred revenue
119
147
Other current liabilities
134
121
Long-term debt due within one year
1
191
Short-term borrowings
450
—
Total current liabilities
2,306
1,771
Long-term debt, less amount due within one year
4,050
2,859
Accrued pension benefits
511
546
Accrued other postretirement benefits
34
38
Other noncurrent liabilities and deferred credits
618
612
Total liabilities
7,519
5,826
Equity
Howmet Aerospace shareholders' equity:
Common stock
400
402
Additional capital
1,919
2,531
Retained earnings
5,110
4,093
Accumulated other comprehensive loss
(1,697)
(1,673)
Total equity
5,732
5,353
Total liabilities and equity
$ 13,251
$ 11,179
Howmet Aerospace Inc. and subsidiaries
Statement of Consolidated Cash Flows (unaudited)
(in U.S. dollar millions)
Six months ended
June 30,
2026
2025
Operating activities
Net income
$ 1,114
$ 751
Adjustments to reconcile net income to cash provided from operations:
Depreciation and amortization
158
138
Deferred income taxes
9
12
Restructuring and other credits
(93)
(4)
Net realized and unrealized losses
8
11
Net periodic pension cost
23
21
Stock-based compensation
57
39
Other
5
2
Changes in assets and liabilities, excluding effects of acquisitions, divestitures, and
foreign currency translation adjustments:
Increase in receivables
(196)
(170)
Increase in inventories
(165)
(81)
(Increase) decrease in prepaid expenses and other current assets
(53)
6
Increase in accounts payable, trade
279
74
Decrease in accrued expenses
(59)
(47)
Decrease in taxes, including income taxes
(27)
(20)
Pension contributions
(21)
(15)
Increase in noncurrent assets
(7)
(2)
Increase (decrease) in noncurrent liabilities
4
(16)
Cash provided from operations
1,036
699
Financing Activities
Net change in commercial paper
450
—
Additions to debt
1,200
—
Repurchases and payments on debt
(186)
(77)
Debt issuance costs
(12)
—
Repurchases of common stock
(600)
(300)
Dividends paid to shareholders
(97)
(83)
Taxes paid for net share settlement of equity awards
(65)
(44)
Other
(5)
(2)
Cash provided from (used for) financing activities
685
(506)
Investing Activities
Capital expenditures
(198)
(221)
Acquisitions, net of cash acquired
(1,929)
—
Proceeds from the sale of assets and businesses
225
8
Other
2
1
Cash used for investing activities
(1,900)
(212)
Effect of exchange rate changes on cash, cash equivalents and restricted cash
—
—
Net change in cash, cash equivalents and restricted cash
(179)
(19)
Cash, cash equivalents and restricted cash at beginning of period
743
565
Cash, cash equivalents and restricted cash at end of period
$ 564
$ 546
Howmet Aerospace Inc. and subsidiaries
Segment Information (unaudited)
(in U.S. dollar millions)
1Q25
2Q25
3Q25
4Q25
2025
1Q26
2Q26
Engine Products
Third-party sales
$ 974
$ 1,038
$ 1,087
$ 1,143
$ 4,242
$ 1,253
$ 1,373
Inter-segment sales
$ 2
$ 3
$ 2
$ 1
$ 8
$ 2
$ 3
Provision for depreciation and amortization
$ 33
$ 35
$ 37
$ 39
$ 144
$ 38
$ 42
Segment Adjusted EBITDA
$ 318
$ 343
$ 362
$ 393
$ 1,416
$ 458
$ 517
Segment Adjusted EBITDA Margin
32.6 %
33.0 %
33.3 %
34.4 %
33.4 %
36.6 %
37.7 %
Restructuring and other charges
$ —
$ —
$ —
$ 88
$ 88
$ —
$ —
Capital expenditures
$ 85
$ 74
$ 73
$ 84
$ 316
$ 59
$ 77
Fastening Systems
Third-party sales
$ 412
$ 431
$ 448
$ 454
$ 1,745
$ 471
$ 589
Inter-segment sales
$ —
$ —
$ —
$ 1
$ 1
$ —
$ —
Provision for depreciation and amortization
$ 12
$ 12
$ 12
$ 12
$ 48
$ 13
$ 20
Segment Adjusted EBITDA
$ 127
$ 126
$ 138
$ 139
$ 530
$ 150
$ 177
Segment Adjusted EBITDA Margin
30.8 %
29.2 %
30.8 %
30.6 %
30.4 %
31.8 %
30.1 %
Restructuring and other charges (credits)
$ —
$ 1
$ —
$ (1)
$ —
$ —
$ —
Capital expenditures
$ 10
$ 9
$ 13
$ 20
$ 52
$ 17
$ 11
Engineered Structures
Third-party sales
$ 304
$ 308
$ 307
$ 307
$ 1,226
$ 294
$ 269
Inter-segment sales
$ 7
$ 8
$ 7
$ 4
$ 26
$ 8
$ 8
Provision for depreciation and amortization
$ 13
$ 10
$ 10
$ 10
$ 43
$ 10
$ 11
Segment Adjusted EBITDA
$ 67
$ 68
$ 64
$ 66
$ 265
$ 66
$ 64
Segment Adjusted EBITDA Margin
22.0 %
22.1 %
20.8 %
21.5 %
21.6 %
22.4 %
23.8 %
Restructuring and other credits
$ (4)
$ —
$ —
$ —
$ (4)
$ (93)
$ —
Capital expenditures
$ 6
$ 7
$ 10
$ 13
$ 36
$ 12
$ 8
Forged Wheels
Third-party sales
$ 252
$ 276
$ 247
$ 264
$ 1,039
$ 295
$ 316
Provision for depreciation and amortization
$ 10
$ 10
$ 11
$ 11
$ 42
$ 11
$ 10
Segment Adjusted EBITDA
$ 68
$ 76
$ 73
$ 79
$ 296
$ 90
$ 88
Segment Adjusted EBITDA Margin
27.0 %
27.5 %
29.6 %
29.9 %
28.5 %
30.5 %
27.8 %
Restructuring and other credits
$ —
$ (1)
$ —
$ —
$ (1)
$ —
$ —
Capital expenditures
$ 15
$ 8
$ 9
$ 4
$ 36
$ 3
$ 4
Differences between the total segment and consolidated totals are in Corporate.
Howmet Aerospace Inc. and subsidiaries
Calculation of Financial Measures (unaudited)
(in U.S. dollar millions)
Reconciliation of Total Segment Adjusted EBITDA to Consolidated Operating income
1Q25
2Q25
3Q25
4Q25
2025
1Q26
2Q26
Operating income
$ 494
$ 521
$ 542
$ 489
$ 2,046
$ 753
$ 711
Segment provision for depreciation and amortization
68
67
70
72
277
72
83
Unallocated amounts:
Restructuring and other (credits) charges
(4)
—
—
88
84
(93)
—
Corporate expense(1)
22
25
25
28
100
32
52
Total Segment Adjusted EBITDA
$ 580
$ 613
$ 637
$ 677
$ 2,507
$ 764
$ 846
Total Segment Adjusted EBITDA is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because Total Segment Adjusted EBITDA provides additional information with respect to the Company's operating performance and the Company's ability to meet its financial obligations. The Total Segment Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. Howmet's definition of Total Segment Adjusted EBITDA is defined as Operating Income excluding Restructuring and other (credits) charges and Special items and Provision for depreciation and amortization. Special items, including Restructuring and other (credits) charges, are excluded from Adjusted EBITDA.
(1) Pre-tax special items included in Corporate expense
1Q25
2Q25
3Q25
4Q25
2025
1Q26
2Q26
Acquisition and acquisition-related costs(2)
$ —
$ —
$ —
$ 2
$ 2
$ 6
$ 22
Costs (benefits) associated with closures, supply chain
disruptions, and other items
1
(1)
—
1
1
—
—
Total Pre-tax special items included in Corporate expense
$ 1
$ (1)
$ —
$ 3
$ 3
$ 6
$ 22
(2) Interest expense of $1 related to the CAM acquisition financing in 1Q26.
Howmet Aerospace Inc. and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in U.S. dollars millions)
Reconciliation of Free cash flow
Quarter ended
Six months ended
1Q26
2Q26
2Q26
Cash provided from operations
$ 453
$ 583
$ 1,036
Capital expenditures
(94)
(104)
(198)
Free cash flow
$ 359
$ 479
$ 838
Cash provided from (used for) financing activities
$ 1,226
(541)
685
Cash provided from (used for) investing activities
$ 14
(1,914)
(1,900)
The Accounts Receivable Securitization program remains unchanged at $250 outstanding.
Free cash flow is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews cash flows generated from operations after taking into consideration capital expenditures (due to the fact that these expenditures are considered necessary to maintain and expand the Company's asset base and are expected to generate future cash flows from operations). It is important to note that Free cash flow does not represent the residual cash flow available for discretionary expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the measure.
Howmet Aerospace Inc. and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in U.S. dollar millions, except per-share and share amounts)
Reconciliation of Adjusted Net income
Quarter ended
Six months ended
2Q25
1Q26
2Q26
June 30, 2025
June 30, 2026
Net income
$ 407
$ 580
$ 534
$ 751
$ 1,114
Diluted earnings per share ("EPS")
$ 1.00
$ 1.44
$ 1.33
$ 1.84
$ 2.77
Average number of diluted shares
406
403
402
407
402
Special items:
Restructuring and other credits(1)
—
(93)
—
(4)
(93)
Acquisition and acquisition-related costs(2)
—
7
22
—
29
Benefits associated with closures, supply
chain disruptions, and other items
(1)
—
—
—
—
Subtotal: Pre-tax special items
(1)
(86)
22
(4)
(64)
Tax impact of Pre-tax special items(3)
—
30
(4)
1
26
Subtotal
(1)
(56)
18
(3)
(38)
Discrete and other tax special items(4)
(35)
(30)
(18)
(26)
(48)
Total: After-tax special items
(36)
(86)
—
(29)
(86)
Adjusted Net income
$ 371
$ 494
$ 534
$ 722
$ 1,028
Adjusted EPS
$ 0.91
$ 1.22
$ 1.33
$ 1.77
$ 2.56
Adjusted Net income and Adjusted EPS are non-GAAP financial measures. Management believes that these measures are meaningful to investors because management reviews the operating results of the Company excluding the impacts of Restructuring and other credits, Discrete tax items, and Other special items (collectively, "Special items"). There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Net income and Diluted EPS determined under GAAP as well as Adjusted Net income and Adjusted EPS.
(1)
Restructuring and other credits for the quarter ended 1Q26 and the six months ended June 30, 2026 included a gain on the sale of the Company's disk forging facility in Savannah, GA within Engineered Structures.
(2)
Includes legal and advisory costs, amortization expense of inventory step-up recorded in accordance with purchase accounting, and other acquisition-related costs for CAM and Brunner. Additionally, interest expense of $1 related to the CAM acquisition financing in 1Q26.
(3)
The Tax impact of Pre-tax special items is based on the applicable statutory rates whereby the difference between such rates and the Company's consolidated estimated annual effective tax rate is itself a Special item.
(4)
Discrete tax items for each period included the following:
•
for 2Q25, benefits related to U.S. accounting method changes for certain prior period transaction and other costs ($17), an excess benefit for stock compensation ($13), and a net benefit related to U.S. federal and state research and development ("R&D") credits claimed for prior years ($5).
•
for 1Q26, an excess benefit for stock compensation ($21);
•
for 2Q26, a benefit to release a valuation allowance related to U.S. foreign tax credits ($22), a benefit to release a valuation allowance related to U.S. state tax losses ($10), a benefit to release a tax reserve in Germany ($3), an excess benefit for stock compensation ($1), and a charge to establish an international withholding tax reserve $16;
•
for the six months ended 2Q25, benefits related to U.S. accounting method changes for certain prior period transaction and other costs ($17), an excess benefit for stock compensation ($14), a net benefit related to U.S. federal and state R&D credits claimed for prior years ($5), a net charge related to the expiration of a tax holiday in China $6, a charge for a tax reserve established in Germany $2, and a net charge for other small items $2; and
•
for the six months ended 2Q26, a benefit to release a valuation allowance related to U.S. foreign tax credits ($22), an excess benefit for stock compensation ($22), a benefit to release a valuation allowance related to U.S. state tax losses ($10), a benefit to release a tax reserve in Germany ($3), and a charge to establish an international withholding tax reserve $16.
Howmet Aerospace Inc. and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in U.S. dollar millions)
Reconciliation of Operational tax rate
Quarter ended
Six months ended
2Q26
2Q26
Effective
tax rate,
as
reported
Special
items(1)(2)
Operational
tax rate, as
adjusted
Effective
tax rate,
as
reported
Special
items(1)(2)
Operational
tax rate, as
adjusted
Income before income taxes
$ 649
$ 22
$ 671
$ 1,357
$ (64)
$ 1,293
Provision for income taxes
$ 115
$ 22
$ 137
$ 243
$ 22
$ 265
Tax rate
17.7 %
20.4 %
17.9 %
20.5 %
Operational tax rate is a non-GAAP financial measure. Management believes that this measure is meaningful to investors because management reviews the operating results of the Company excluding the impacts of Special items. There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both the Effective tax rate determined under GAAP as well as the Operational tax rate.
(1)
Pre-tax special items for 2Q26 included Acquisition and acquisition-related costs $22. Pre-tax special items for the six months ended 2Q26 included Restructuring and other credits ($93) and Acquisition and acquisition-related costs $29.
(2)
Tax Special items includes discrete tax items, the tax impact on Special items based on the applicable statutory rates, the difference between such rates and the Company's consolidated estimated annual effective tax rate and other tax related items. Discrete tax items for each period included the following:
•
for the quarter ended 2Q26, a benefit to release a valuation allowance related to U.S. foreign tax credits ($22), a benefit to release a valuation allowance related to U.S. state tax losses ($10), a benefit to release a tax reserve in Germany ($3), an excess benefit for stock compensation ($1), and a charge to establish an international withholding tax reserve $16.
•
for the six months ended 2Q26, a benefit to release a valuation allowance related to U.S. foreign tax credits ($22), an excess benefit for stock compensation ($22), a benefit to release a valuation allowance related to U.S. state tax losses ($10), a benefit to release a tax reserve in Germany ($3), and a charge to establish an international withholding tax reserve $16.
Howmet Aerospace Inc. and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in U.S. dollars millions)
Reconciliation of Adjusted Operating
Income, Adjusted Operating Income
Margin, Adjusted EBITDA, and Adjusted
EBITDA margin
Quarter ended
Six months ended
2Q25
1Q26
2Q26
June 30, 2025
June 30, 2026
Sales
$ 2,053
$ 2,313
$ 2,547
$ 3,995
$ 4,860
Operating income
$ 521
$ 753
$ 711
$ 1,015
$ 1,464
Operating income margin
25.4 %
32.6 %
27.9 %
25.4 %
30.1 %
Operating income
$ 521
$ 753
$ 711
$ 1,015
$ 1,464
Add:
Restructuring and other credits
$ —
$ (93)
$ —
(4)
(93)
Acquisition and acquisition-related costs(1)
—
6
22
—
28
Benefits associated with closures, supply
chain disruptions, and other items
(1)
—
—
—
—
Adjusted operating income
$ 520
$ 666
$ 733
$ 1,011
$ 1,399
Adjusted operating income margin
25.3 %
28.8 %
28.8 %
25.3 %
28.8 %
Provision for depreciation and
amortization
69
74
84
138
158
Adjusted EBITDA
$ 589
$ 740
$ 817
$ 1,149
$ 1,557
Adjusted EBITDA margin
28.7 %
32.0 %
32.1 %
28.8 %
32.0 %
Adjusted operating income and Adjusted operating income margin are non-GAAP financial measures. Special items, including Restructuring and other credits, are excluded from Adjusted operating income. Management believes that these measures are meaningful to investors because management reviews the operating results of the Company excluding the impacts of Special items. There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation, management believes that it is appropriate to consider both Operating income and Operating income margin determined under GAAP as well as Adjusted operating income and Adjusted operating income margin.
Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Management believes that these measures are meaningful to investors because they provide additional information with respect to the Company's operating performance and the Company's ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled measures of other companies. The Company's definition of Adjusted EBITDA is defined as Operating Income excluding Restructuring and other credits and Special items and Provision for depreciation and amortization. Special items, including Restructuring and other credits, are excluded from Adjusted EBITDA.
(1) Interest expense of $1 related to the CAM acquisition financing in 1Q26.
Howmet Aerospace Inc. and subsidiaries
Calculation of Financial Measures (unaudited), continued
(in U.S. dollars millions)
Reconciliation of Organic
Revenue
Quarter ended
Six months ended
2Q25
2Q26
% Change
June 30, 2025
June 30, 2026
% Change
Sales
$ 2,053
$ 2,547
24 %
$ 3,995
$ 4,860
22 %
Less:
Net Acquisitions and Divestitures
$ 34
$ 100
$ 65
$ 146
Total: Organic Revenue
$ 2,019
$ 2,447
21 %
$ 3,930
$ 4,714
20 %
Organic revenue is a non-GAAP financial measure. Management believes this measure is meaningful to investors as it presents revenue on a comparable basis for all periods presented excluding the impact of the acquisitions of CAM (acquired April 2026) and Brunner (acquired February 2026) and the sale of the disk forging facility in Savannah, GA (divested March 2026). Management believes that it is appropriate to consider both Sales determined under GAAP as well as Organic Revenue.
Key Takeaways HWM is expected to report Q2 EPS of $1.23 on $2.41B in revenues, with earnings and sales up year over year.Howmet's commercial aerospace demand and defense orders are expected to support second-quarter results.HWM faces commercial transportation weakness, supply-chain issues and a higher valuation than peers. Howmet Aerospace Inc. (HWM - Free Report) is scheduled to release second-quarter 2026 results on Aug. 6, before market open. The Zacks Consensus Estimate for earnings is currently pegged at $1.23 per share on revenues of $2.41 billion.
The company’s second-quarter earnings estimates have decreased a penny over the past 30 days. However, the bottom-line projection indicates an increase of 35.2% from the year-ago number. The Zacks Consensus Estimate for quarterly revenues indicates year-over-year growth of 17.5%.
Earnings Surprise History
Image Source: Zacks Investment Research
The company has surpassed the Zacks Consensus Estimate thrice and missed once in the preceding four quarters, the average surprise being -1.3%. In the last reported quarter, it reported earnings of 86 cents per share, which missed the consensus estimate by 22.5%.
Earnings Whispers for HWMOur proven model does not conclusively predict an earnings beat for HWM this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.
Earnings ESP: HWM has an Earnings ESP of -0.83% as the Zacks Consensus Estimate is pegged at $1.23 per share, which is higher than the Most Accurate Estimate of $1.22. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: HWM currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors to Note Ahead of Howmet Aerospace’s Q2 ResultsHowmet Aerospace’s second-quarter results are expected to gain from persistent strength in its commercial aerospace market. Solid demand in the air transport market has been driving demand for wide-body aircraft, thereby supporting continued OEM spending. Pickup in air travel has been positive for the company as the increased usage of aircraft spurs spending on parts and products that it provides.
Increasing popularity for new, more fuel-efficient aircraft with reduced carbon emissions and increased spare demand for engines are expected to have proven promising for HWM in the second quarter. The Zacks Consensus Estimate for revenues from the commercial aerospace market is pegged at $1.29 billion, indicating a 21.7% rise from the year-ago quarter number.
Also, the company's defense aerospace market remains a key growth driver, backed by stable government funding. HWM is continuing to experience robust orders for engine spares for legacy fighters like the F-15 and the F-16. This is expected to have augmented its revenues in the to-be-reported quarter. The consensus estimate for revenues from the defense aerospace market is pegged at $388 million, indicating 10.2% growth from the year-ago quarter’s number.
However, Howmet Aerospace has been facing weakness in the commercial transportation market served by the Forged Wheels segment, due to lower OEM builds and tariff-related impacts in North America. This is likely to have affected its second-quarter performance.
Howmet Aerospace is dependent on a global supply chain, and in recent years, it has experienced supply-chain disruptions in the aerospace sector that resulted in delays and increased costs. Despite moderation, the persistence of supply-chain issues in the aerospace sector is likely to have affected its operations and performance.
HWM’s Price PerformanceHWM shares have gained 29.1% in the past six months compared with the Zacks Aerospace - Defense industry and the S&P 500’s decline of 2.3% and growth of 11.8%, respectively. In comparison, the company’s peers, Textron Inc. (TXT - Free Report) and RTX Corporation (RTX - Free Report) have decreased 6.6% and gained 9.7%, respectively, in the same period.
Six-Month Price Performance
Image Source: Zacks Investment Research
Howmet Aerospace’s Valuation Remains an OverhangHWM is trading at a forward 12-month price-to-earnings (P/E) ratio of 51.67X, much higher than the industry average of 34.53X. This elevated valuation could make the stock vulnerable to further pullbacks if market sentiment sours. In comparison with HWM’s valuation, its peers, Textron and RTX Corp., are trading cheaper. Notably, Textron and RTX Corp. are currently trading at 12.76X and 28.9X, respectively.
Price-to-Earnings (Forward 12 Months)
Image Source: Zacks Investment Research
Investment ThesisHowmet Aerospace is well-positioned for long-term growth, supported by its diversified portfolio and strong demand across the commercial aerospace and defense markets. The House of Representatives passed the fiscal year 2026 Defense Appropriations Act in July 2025, providing a total discretionary allocation of $831.5 billion. The expanded defense budget is expected to create additional contract opportunities for Howmet Aerospace, supporting growth in its defense aerospace business and boosting its top line.
However, persistent weakness in the commercial transportation market is likely to remain a near-term headwind. Additionally, Howmet Aerospace's premium valuation may limit further upside and warrants a cautious stance from investors.
Final ThoughtsStrength across the commercial and defense aerospace markets, supported by solid aircraft build rates, strong engine spares demand and elevated defense spending, is expected to drive Howmet Aerospace's growth. Despite its premium valuation, strong growth prospects make the stock worth considering.
Analysts on Wall Street project that Howmet (HWM - Free Report) will announce quarterly earnings of $1.23 per share in its forthcoming report, representing an increase of 35.2% year over year. Revenues are projected to reach $2.41 billion, increasing 17.5% from the same quarter last year.
The current level reflects an upward revision of 0.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Bearing this in mind, let's now explore the average estimates of specific Howmet metrics that are commonly monitored and projected by Wall Street analysts.
Analysts' assessment points toward 'Total Sales- Engine Products' reaching $1.27 billion. The estimate indicates a change of +20.5% from the prior-year quarter.
Analysts expect 'Total Sales- Fastening Systems' to come in at $567.30 million. The estimate indicates a year-over-year change of +31.6%.
The consensus among analysts is that 'Total Sales- Engineered Structures' will reach $276.89 million. The estimate indicates a change of -5.5% from the prior-year quarter.
It is projected by analysts that the 'End Market Revenue- Industrial and Other' will reach $371.80 million. The estimate points to a change of +20.3% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'End Market Revenue- Aerospace- Commercial' of $1.29 billion. The estimate indicates a change of +21.6% from the prior-year quarter.
Analysts forecast 'End Market Revenue- Aerospace- Defense' to reach $387.57 million. The estimate indicates a year-over-year change of +10.1%.
Based on the collective assessment of analysts, 'End Market Revenue- Commercial Transportation' should arrive at $343.45 million. The estimate indicates a change of +3.5% from the prior-year quarter.
The average prediction of analysts places 'Total Sales- Forged Wheels' at $287.73 million. The estimate indicates a year-over-year change of +4.3%.
Analysts predict that the 'Adjusted EBITDA- Engine Products' will reach $466.58 million. The estimate compares to the year-ago value of $349.00 million.
The combined assessment of analysts suggests that 'Adjusted EBITDA- Forged Wheels' will likely reach $86.32 million. The estimate is in contrast to the year-ago figure of $76.00 million.
According to the collective judgment of analysts, 'Adjusted EBITDA- Engineered Structures' should come in at $63.28 million. The estimate is in contrast to the year-ago figure of $62.00 million.
The consensus estimate for 'Adjusted EBITDA- Fastening Systems' stands at $176.60 million. Compared to the current estimate, the company reported $126.00 million in the same quarter of the previous year.
View all Key Company Metrics for Howmet here>>>
Over the past month, shares of Howmet have returned +4.4% versus the Zacks S&P 500 composite's +0.2% change. Currently, HWM carries a Zacks Rank #2 (Buy), suggesting that it may outperform. the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
The market expects Howmet (HWM - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 6. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis maker of engineered products for the aerospace and other industries is expected to post quarterly earnings of $1.23 per share in its upcoming report, which represents a year-over-year change of +35.2%.
Revenues are expected to be $2.41 billion, up 17.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.28% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Howmet?For Howmet, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.83%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination makes it difficult to conclusively predict that Howmet will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Howmet would post earnings of $1.11 per share when it actually produced earnings of $0.86, delivering a surprise of -22.52%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Howmet doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
In the latest close session, Howmet (HWM - Free Report) was down 4.63% at $272.79. The stock's change was less than the S&P 500's daily loss of 1.52%. Elsewhere, the Dow saw a downswing of 2.19%, while the tech-heavy Nasdaq depreciated by 1.74%.
Coming into today, shares of the maker of engineered products for the aerospace and other industries had gained 6.39% in the past month. In that same time, the Aerospace sector gained 2.09%, while the S&P 500 gained 1.92%.
Market participants will be closely following the financial results of Howmet in its upcoming release. The company plans to announce its earnings on August 6, 2026. It is anticipated that the company will report an EPS of $1.23, marking a 35.16% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $2.41 billion, up 17.52% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $4.98 per share and a revenue of $9.74 billion, indicating changes of +32.1% and +18.02%, respectively, from the former year.
Any recent changes to analyst estimates for Howmet should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.11% rise in the Zacks Consensus EPS estimate. At present, Howmet boasts a Zacks Rank of #2 (Buy).
Looking at its valuation, Howmet is holding a Forward P/E ratio of 57.45. This represents a premium compared to its industry average Forward P/E of 23.8.
Meanwhile, HWM's PEG ratio is currently 2.28. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Aerospace - Defense industry held an average PEG ratio of 1.66.
The Aerospace - Defense industry is part of the Aerospace sector. Currently, this industry holds a Zacks Industry Rank of 96, positioning it in the top 40% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow HWM in the coming trading sessions, be sure to utilize Zacks.com.
Investors interested in Aerospace stocks should always be looking to find the best-performing companies in the group. Is Howmet (HWM - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question.
Howmet is a member of our Aerospace group, which includes 77 different companies and currently sits at #3 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. Howmet is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for HWM's full-year earnings has moved 10.6% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, HWM has moved about 40.4% on a year-to-date basis. At the same time, Aerospace stocks have gained an average of 5%. This shows that Howmet is outperforming its peers so far this year.
Moog (MOG.A - Free Report) is another Aerospace stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 71.4%.
Over the past three months, Moog's consensus EPS estimate for the current year has increased 0.7%. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Howmet belongs to the Aerospace - Defense industry, a group that includes 39 individual stocks and currently sits at #144 in the Zacks Industry Rank. On average, this group has gained an average of 3.7% so far this year, meaning that HWM is performing better in terms of year-to-date returns.
In contrast, Moog falls under the Aerospace - Defense Equipment industry. Currently, this industry has 37 stocks and is ranked #67. Since the beginning of the year, the industry has moved +8.2%.
Investors with an interest in Aerospace stocks should continue to track Howmet and Moog. These stocks will be looking to continue their solid performance.
Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- The Board of Directors of Howmet Aerospace Inc. (NYSE: HWM) declared a dividend of 14 cents per share on the outstanding Common Stock of the Company, to be paid on August 25, 2026, to the holders of record of the Common Stock at the close of business on August 7, 2026.
About Howmet Aerospace
Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace, gas turbine and transportation industries. The Company's primary businesses focus on engine components, fastening systems, and airframe structural components necessary for mission-critical performance and efficiency, including in aerospace, defense, and gas turbine applications, as well as forged aluminum wheels for commercial transportation. With approximately 1,200 granted and pending patents, the Company's differentiated technologies enable lighter, more fuel-efficient aircraft and commercial trucks to operate with a lower carbon footprint. For more information, visit www.howmet.com.
Dissemination of Company Information
Howmet Aerospace intends to make future announcements regarding Company developments and financial performance through its website at www.howmet.com.
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.
That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Howmet (HWM - Free Report) is one such stock that our proprietary system currently recommends. The company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
Here are three of the most important factors that make the stock of this maker of engineered products for the aerospace and other industries a great growth pick right now.
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. For growth investors, double-digit earnings growth is highly preferable, as it is often perceived as an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Howmet is 40%, investors should actually focus on the projected growth. The company's EPS is expected to grow 32.1% this year, crushing the industry average, which calls for EPS growth of 12.5%.
Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Howmet is 31.2%, which is higher than many of its peers. In fact, the rate compares to the industry average of 9.8%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 21.3% over the past 3-5 years versus the industry average of 12.7%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Howmet have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.1% over the past month.
Bottom LineHowmet has not only earned a Growth Score of B based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #2 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Howmet well for outperformance, so growth investors may want to bet on it.
Bradley Foster & Sargent Inc. CT trimmed its position in shares of Howmet Aerospace Inc. (NYSE:HWM – Free Report) by 66.4% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The institutional investor owned 16,561 shares of the company’s stock after selling 32,757 shares during the period. Bradley Foster & Sargent Inc. CT’s holdings in Howmet Aerospace were worth $3,817,000 as of its most recent SEC filing.
A number of other hedge funds also recently bought and sold shares of HWM. Lombard Odier Asset Management Switzerland SA grew its position in Howmet Aerospace by 5.2% during the first quarter. Lombard Odier Asset Management Switzerland SA now owns 14,155 shares of the company’s stock valued at $3,262,000 after acquiring an additional 700 shares during the last quarter. Aristotle Atlantic Partners LLC grew its holdings in shares of Howmet Aerospace by 13.5% during the 1st quarter. Aristotle Atlantic Partners LLC now owns 6,518 shares of the company’s stock valued at $1,502,000 after purchasing an additional 777 shares during the last quarter. Waverly Advisors LLC grew its holdings in shares of Howmet Aerospace by 481.3% during the 1st quarter. Waverly Advisors LLC now owns 24,293 shares of the company’s stock valued at $5,599,000 after purchasing an additional 20,114 shares during the last quarter. Wealth Alliance LLC purchased a new position in Howmet Aerospace in the 1st quarter worth $358,000. Finally, Healthcare of Ontario Pension Plan Trust Fund raised its position in Howmet Aerospace by 58.4% in the 1st quarter. Healthcare of Ontario Pension Plan Trust Fund now owns 25,182 shares of the company’s stock worth $5,803,000 after purchasing an additional 9,288 shares during the period. Institutional investors own 90.46% of the company’s stock.
Wall Street Analyst Weigh In HWM has been the subject of several recent research reports. Citigroup boosted their price target on shares of Howmet Aerospace from $303.00 to $311.00 and gave the stock a “buy” rating in a research note on Wednesday, July 1st. Wells Fargo & Company initiated coverage on Howmet Aerospace in a report on Wednesday, April 1st. They issued an “equal weight” rating and a $240.00 price objective on the stock. Jefferies Financial Group boosted their target price on Howmet Aerospace from $320.00 to $340.00 and gave the company a “buy” rating in a research note on Thursday, July 9th. Morgan Stanley restated an “overweight” rating and set a $315.00 target price on shares of Howmet Aerospace in a report on Friday, May 8th. Finally, BNP Paribas Exane restated an “outperform” rating and set a $340.00 price target (up from $265.00) on shares of Howmet Aerospace in a research report on Friday, May 8th. Eighteen research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $293.21.
Check Out Our Latest Stock Analysis on HWM
Insider Buying and Selling In other Howmet Aerospace news, EVP Neil Edward Marchuk sold 41,932 shares of the company’s stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $269.50, for a total transaction of $11,300,674.00. Following the completion of the transaction, the executive vice president owned 65,105 shares of the company’s stock, valued at $17,545,797.50. This represents a 39.18% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. 0.85% of the stock is owned by insiders.
Howmet Aerospace Price Performance HWM stock opened at $289.09 on Monday. The firm’s 50-day moving average price is $267.50 and its two-hundred day moving average price is $249.52. Howmet Aerospace Inc. has a 12-month low of $169.45 and a 12-month high of $293.00. The stock has a market capitalization of $115.67 billion, a price-to-earnings ratio of 67.07, a PEG ratio of 2.27 and a beta of 1.19. The company has a current ratio of 2.44, a quick ratio of 1.59 and a debt-to-equity ratio of 0.73.
Howmet Aerospace (NYSE:HWM – Get Free Report) last posted its earnings results on Thursday, May 7th. The company reported $1.22 earnings per share for the quarter, topping analysts’ consensus estimates of $1.11 by $0.11. The company had revenue of $2.31 billion during the quarter, compared to analyst estimates of $2.24 billion. Howmet Aerospace had a net margin of 20.23% and a return on equity of 29.27%. Howmet Aerospace’s revenue for the quarter was up 19.1% on a year-over-year basis. During the same period in the prior year, the business posted $0.86 earnings per share. Howmet Aerospace has set its FY 2026 guidance at 4.880-5.000 EPS and its Q2 2026 guidance at 1.220-1.240 EPS. As a group, equities analysts predict that Howmet Aerospace Inc. will post 5.05 earnings per share for the current year.
Howmet Aerospace Profile (Free Report)
Howmet Aerospace Inc is an industrial technology company that designs, manufactures and repairs engineered metal products for the aerospace, transportation and industrial markets. Its product portfolio includes precision castings and forgings, engineered fasteners, seamless rolled rings, and complex components for turbine engines, airframes and industrial gas turbines. The company also provides aftermarket services such as component repair, overhaul and parts distribution to support the operating fleet of commercial and military customers.
Howmet serves a global customer base of original equipment manufacturers (OEMs) and aftermarket operators, with manufacturing, service and distribution facilities across North America, Europe and Asia.
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Key Takeaways HWM's commercial aerospace and defense markets fueled strong first-quarter 2026 revenue growth. HWM benefits from aircraft production, defense demand and rising 2026 sales and EPS estimates. LHX posted record backlog and orders, but debt levels and weaker EPS estimate trends remain concerns. Geopolitical instability across the globe has fueled demand for defense equipment and technologies, providing a significant growth tailwind for companies like Howmet Aerospace Inc. (HWM - Free Report) and L3Harris Technologies, Inc. (LHX - Free Report) . These are two familiar names operating in the aerospace and defense industry.
Howmet is a leading manufacturer of components and systems for jet engines and airframes, while L3Harris provides integrated aerospace and defense technologies, including avionics, electronic systems, and command-and-control solutions, to customers in the United States and internationally.
Rising global defense spending and the continued recovery in commercial aviation have boosted investor interest in aerospace companies with defense exposure. But which of these two stocks is better positioned to capitalize on these trends? Let’s compare their fundamentals to find out.
The Case for HowmetHowmet’s strongest growth driver remains the sustained momentum in the commercial aerospace market. In the first quarter of 2026, revenues from this market increased 20% year over year to more than $1.2 billion, accounting for 53% of the company’s total quarterly sales. Healthy global air travel has boosted aircraft utilization, driving demand for replacement parts and components supplied by Howmet.
The favorable market environment benefited Howmet’s Engine Products segment, which reported a 29% year-over-year revenue increase in the first quarter. The continued strength was driven by solid momentum in the commercial aerospace, defense aerospace and gas turbine markets. The Fastening Systems segment recorded 14% revenue growth, benefiting from solid demand in both the commercial and defense aerospace markets.
Also, Boeing is witnessing a gradual production increase, particularly in the 737 MAX widebody aircraft, which is boosting demand for Howmet’s products in the market. Healthy build rates at Airbus for A320 (narrowbody) and A350 (widebody) aircraft also hold promise for HWM’s engine spares demand.
The company is also benefiting from strength in the defense aerospace market. In the first quarter, revenues from this market rose 10% year over year, fueled by higher demand for engine spares related to the F-35 program and increased orders for legacy fighter jet replacement parts.
It's worth noting that the fiscal year 2026 Defense Appropriations Act was signed into law in February 2026, providing a strong budgetary allocation for defense. Such robust provisions set the stage for Howmet, which remains focused on its defense business.
HWM’s measures to reward shareholders are encouraging. In the first three months of 2026, the company paid dividends of $48 million and repurchased shares worth $300 million. In August 2025, the company hiked its dividend by 20% to 12 cents per share (annually: 48 cents), marking its second dividend hike in 2025. Also, in July 2024, its board approved an increase in the share repurchase program by $2 billion to $2.487 billion of its common stock.
The Case for LHXL3Harris is well-positioned to benefit from robust U.S. defense spending, supported by favorable budgetary priorities and rising investments in advanced defense technologies. The fiscal 2027 President's Budget Request, introduced in April 2026, proposed roughly $1.5 trillion in funding for national defense programs, creating a favorable demand environment for the company's Space & Mission Systems, Communications & Spectrum Dominance, and Missile Solutions portfolios.
LHX also remains well aligned with key U.S. defense priorities, including the Golden Dome, missile defense and hypersonic tracking. In the first quarter of 2026, L3Harris generated $7.8 billion in orders, resulting in a robust 1.4x book-to-bill ratio, while its backlog reached a record $40.7 billion, providing strong revenue visibility for future program execution. Strengthening its position further, the company secured a Space Development Agency contract worth up to $843 million to build 18 infrared satellites for the Tranche 3 Tracking Layer, designed to detect and track advanced missile threats.
Also, its Aerojet Rocketdyne subsidiary entered into definitive agreements in April 2026 for a $1.0 billion investment from the U.S. Department of War to expand manufacturing facilities, accelerate research and development, and increase production capacity for critical propulsion and missile technologies.
Beyond the United States, L3Harris continues to benefit from rising defense spending among allied nations. The company is witnessing healthy demand across Europe, the Middle East and the Asia-Pacific region as governments strengthen their defense capabilities. In the first quarter of 2026, the company’s international revenues totaled $1.29 billion, led by the Communications & Spectrum Dominance and Space & Mission Systems.
L3Harris is also sharpening its portfolio while investing in future growth. The company is progressing with the sale of its Space Technology business to AE Industrial Partners for a net enterprise value of $825 million, with the transaction expected to close in the second half of 2026.
Despite these strengths, the company's leveraged balance sheet remains a concern. As of April 3, 2026, L3Harris had $0.59 billion in cash and cash equivalents compared with $9.19 billion in long-term debt.
Also, persistent labor shortages and supply-chain constraints across the aerospace and defense industry continue to pose execution risks, potentially affecting production schedules and timely program deliveries.
The Zacks Consensus Estimate for HWM & LHXThe Zacks Consensus Estimate for HWM’s 2026 sales and earnings per share (EPS) implies year-over-year growth of 18% and 32%, respectively. HWM’s EPS estimates for 2026 have increased over the past 60 days.
Image Source: Zacks Investment Research
The consensus estimate for LHX’s 2026 sales and EPS indicates year-over-year growth of 7.7% and 7.6%, respectively. LHX’s EPS estimates have been trending southward over the past 60 days for 2026.
Image Source: Zacks Investment Research
Price Performance and ValuationIn the past year, Howmet shares have soared 49.6%, while L3Harris stock has gained 3%.
Image Source: Zacks Investment Research
HWM is trading at a forward 12-month price-to-earnings ratio of 50.33X, above its median of 26.43X over the last five years. LHX’s forward earnings multiple sits at 21.98X, above its median of 16.70X over the same time frame.
Image Source: Zacks Investment Research
Final Take on HWM & LHXHowmet is benefiting from sustained strength in both commercial and defense aerospace markets, driven by the recovery in air travel, healthy demand for engine spares and higher defense spending. Backed by solid revenue growth and a strong order pipeline, the company continues to enhance shareholder value through dividends and share repurchases.
L3Harris is well-positioned for long-term growth, supported by its strong presence in both domestic and international defense markets, a record backlog and a robust pipeline of programs. However, ongoing supply-chain constraints, labor shortages and a highly leveraged balance sheet continue to pose challenges to its growth outlook.
Given these factors, HWM seems a better pick for investors than LHX currently. While Howmet currently has a Zacks Rank #2 (Buy), LHX carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Baader Bank Aktiengesellschaft boosted its position in shares of Howmet Aerospace Inc. (NYSE:HWM – Free Report) by 161.4% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 3,205 shares of the company’s stock after acquiring an additional 1,979 shares during the period. Baader Bank Aktiengesellschaft’s holdings in Howmet Aerospace were worth $694,000 as of its most recent SEC filing.
A number of other hedge funds and other institutional investors have also bought and sold shares of the company. Norges Bank bought a new position in Howmet Aerospace during the fourth quarter valued at approximately $1,793,698,000. Price T Rowe Associates Inc. MD boosted its holdings in Howmet Aerospace by 27.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 16,632,206 shares of the company’s stock valued at $3,409,936,000 after acquiring an additional 3,531,700 shares during the period. Auto Owners Insurance Co grew its position in Howmet Aerospace by 20,402.0% during the 4th quarter. Auto Owners Insurance Co now owns 1,441,906 shares of the company’s stock worth $29,562,000 after acquiring an additional 1,434,873 shares during the last quarter. Goldman Sachs Group Inc. lifted its position in Howmet Aerospace by 27.8% in the fourth quarter. Goldman Sachs Group Inc. now owns 2,754,204 shares of the company’s stock valued at $564,667,000 after purchasing an additional 599,151 shares during the last quarter. Finally, Franklin Resources Inc. boosted its stake in shares of Howmet Aerospace by 56.3% during the fourth quarter. Franklin Resources Inc. now owns 1,433,811 shares of the company’s stock valued at $293,960,000 after purchasing an additional 516,570 shares during the period. Institutional investors own 90.46% of the company’s stock.
Howmet Aerospace Price Performance NYSE HWM opened at $278.98 on Wednesday. The stock has a market capitalization of $111.62 billion, a price-to-earnings ratio of 64.73, a PEG ratio of 2.14 and a beta of 1.19. Howmet Aerospace Inc. has a 1-year low of $169.45 and a 1-year high of $290.63. The company has a debt-to-equity ratio of 0.73, a current ratio of 2.44 and a quick ratio of 1.59. The business’s fifty day moving average price is $266.46 and its 200-day moving average price is $247.91.
Howmet Aerospace (NYSE:HWM – Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The company reported $1.22 earnings per share for the quarter, beating analysts’ consensus estimates of $1.11 by $0.11. The firm had revenue of $2.31 billion for the quarter, compared to analysts’ expectations of $2.24 billion. Howmet Aerospace had a return on equity of 29.27% and a net margin of 20.23%.The business’s quarterly revenue was up 19.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.86 EPS. Howmet Aerospace has set its FY 2026 guidance at 4.880-5.000 EPS and its Q2 2026 guidance at 1.220-1.240 EPS. On average, equities analysts predict that Howmet Aerospace Inc. will post 5.05 earnings per share for the current year.
Howmet Aerospace Dividend Announcement The company also recently declared a quarterly dividend, which was paid on Tuesday, May 26th. Investors of record on Friday, May 8th were paid a dividend of $0.12 per share. The ex-dividend date of this dividend was Friday, May 8th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.2%. Howmet Aerospace’s payout ratio is currently 11.14%.
Analyst Ratings Changes A number of research analysts recently issued reports on the company. KeyCorp started coverage on Howmet Aerospace in a report on Wednesday, March 25th. They set a “sector weight” rating on the stock. Sanford C. Bernstein restated an “outperform” rating and set a $318.00 price target on shares of Howmet Aerospace in a research report on Tuesday, June 16th. BNP Paribas Exane reiterated an “outperform” rating and issued a $340.00 price objective (up from $265.00) on shares of Howmet Aerospace in a report on Friday, May 8th. Citigroup upped their target price on shares of Howmet Aerospace from $303.00 to $311.00 and gave the stock a “buy” rating in a research report on Wednesday, July 1st. Finally, Deutsche Bank Aktiengesellschaft reissued a “buy” rating and set a $320.00 price target on shares of Howmet Aerospace in a research report on Friday, May 8th. Eighteen research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, Howmet Aerospace currently has an average rating of “Moderate Buy” and an average target price of $293.21.
Check Out Our Latest Research Report on HWM
Insider Activity In other news, EVP Neil Edward Marchuk sold 41,932 shares of the business’s stock in a transaction on Monday, May 11th. The shares were sold at an average price of $269.50, for a total transaction of $11,300,674.00. Following the completion of the sale, the executive vice president directly owned 65,105 shares of the company’s stock, valued at approximately $17,545,797.50. The trade was a 39.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 0.85% of the stock is owned by company insiders.
About Howmet Aerospace (Free Report)
Howmet Aerospace Inc is an industrial technology company that designs, manufactures and repairs engineered metal products for the aerospace, transportation and industrial markets. Its product portfolio includes precision castings and forgings, engineered fasteners, seamless rolled rings, and complex components for turbine engines, airframes and industrial gas turbines. The company also provides aftermarket services such as component repair, overhaul and parts distribution to support the operating fleet of commercial and military customers.
Howmet serves a global customer base of original equipment manufacturers (OEMs) and aftermarket operators, with manufacturing, service and distribution facilities across North America, Europe and Asia.
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