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what it is
Howmet makes metal parts for jet engines and airplanes, from fasteners to forged components.
how it gets paid
Last year Howmet made $8.3B in revenue. Engine Products was the main engine at $4.2B, or 50% of sales.
why it's growing
Revenue grew 11.1% last year. VL said adjusted EPS was $1.05, which was $0.09 above estimate.
what just happened
Howmet $1.05 a share beat estimates by 9.38%, while quarterly revenue reached $2.17B.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
50/100 earnings predictability — expect surprises
66.4x trailing p/e — you're paying up for this one
0.3% dividend yield — cash in your pocket every quarter
22.5% return on capital — every dollar works hard here
xvary composite: 68/100 — average
What they do
Howmet makes metal parts for jet engines and airplanes, from fasteners to forged components.
Engine Products is 50% of sales. That is the big lever. If your plane needs the part, you do not shop around much. Operating margin means profit after running the business, before interest and taxes. Howmet’s 32.5% margin and 22.5% return on capital mean it turns expensive factories into real cash, not just shiny metal. That is the quiet part. Customers keep buying because the parts are critical, and replacing them is slow and costly.
How they make money
$8.3B
annual revenue · their business grew +11.1% last year
Engine Products
$4.2B
Fastening Systems
$1.7B
Engineered Structures
$1.2B
Forged Products
$1.2B
The products that matter
engineered aerospace and industrial components
Engineered Components
$8.3B revenue · +11.1% growth
it's the entire $8.3B business in this snapshot. revenue grew 11.1% last year, so the bet is less about segment mix and more about whether aerospace demand keeps the whole machine running this efficiently.
~22.8% net margin
Key numbers
32.5%
operating margin (trailing · co.)
That means Howmet keeps 32.5 cents of every sales dollar before interest and taxes in this feed. A single quarter’s margin in the earnings row can differ—match the period.
22.5%
return on capital
Return on capital means profit on the money tied up in plants and equipment. At 22.5%, the business is squeezing a lot out of each invested dollar.
66.4x
trailing P/E
Trailing P/E means price divided by past earnings. At 66.4x, you are paying a lot for a company that still needs to keep executing cleanly.
$228
18-month target
VL’s target sits $22.21 below your $250.21 price. That is 8.9% downside before the market gets dramatic.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 70 / 100
- long-term debt $3.2B (3% of capital)
- net profit margin 22.8% — keeps 23 cents of every dollar in revenue
- return on equity 27% — $0.27 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in HWM 3 years ago → it's now worth $61,460.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Howmet $1.05 a share beat estimates by 9.38%, while quarterly revenue reached $2.17B.
VL said adjusted EPS was $1.05, which was $0.09 above estimate. Yahoo’s consensus also showed $1.05 versus $0.96. Revenue came in at $2.17B, up 14.6% vs. prior year, per the earnings release snippet.
$2.17B
revenue (Q)
$1.05
eps (Q · adj.)
32.5%
operating margin (verify Q vs TTM)
the number that mattered
The $1.05 EPS print mattered because it beat estimates by $0.09 and kept the earnings streak alive.
-
howmet aerospace continues to post steady operating results.
-
fourth-quarter adjusted earnings per share came in at $1.05, $0.09 above our estimate.
-
for 2025, earnings soared 40% over the prior year level on an adjusted basis (note that 2025 earnings have been restated) thanks to ongoing strength in the commercial aerospace market.
-
revenues climbed 11% vs. prior year, and the ebitda margin widened by 380 basis points.
-
we are raising our 2026 earnings estimate by a nickel per share, and debuting our 2027 projection.
source: company earnings report, 2026
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What could go wrong
the top risk is commercial aerospace momentum slowing while HWM still trades at 66.4x trailing earnings.
high
commercial aerospace slowdown
2025 strength was tied to ongoing demand in commercial aerospace. if that cools, the 11.1% revenue growth rate is the first number at risk.
This is an $8.3B revenue story. Slower demand would hit the whole business, not just a side segment.
high
premium multiple compression
at 66.4x trailing earnings and roughly 56x forward earnings, you are paying for continued near-perfect execution.
The current price of $250 already sits 9% above the $228 analyst midpoint. Great business. Little valuation slack.
med
regulatory and government scrutiny
the existing risk file points to government investigations and regulatory actions. for an aerospace and defense supplier, those issues can create noise even when demand stays firm.
With $3.2B in long-term debt, operational disruption would matter more than it would for a debt-free industrial.
med
earnings volatility
earnings predictability is 50/100. in human terms: the trend is good, but quarterly results are still capable of surprising you.
When a stock has already gone from $105 to $257 inside a year, surprises rarely get a gentle reaction.
At $250, you are buying an $8.3B revenue aerospace supplier with strong margins and a B++ balance sheet, but the stock price leaves less room for a stumble than the business quality might suggest.
source: institutional data · regulatory filings · risk analysis
Pay attention to
catalyst
whether 11.1% revenue growth holds
that growth rate is strong for an $8.3B industrial. if it slips while the multiple stays rich, the stock gets harder to defend.
metric
margin after the 380-basis-point jump
one big year is nice. what matters next is whether profitability stays elevated or gives some of it back.
next print
FY2026 EPS estimate at $4.45
watch whether analysts keep nudging this up after earnings. estimate revisions are one of the few things that can keep a premium stock comfortable.
risk
the gap between price and target
current price is $250 versus a $228 midpoint. if operating results stop surprising on the upside, that gap becomes the conversation.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak: they still like the tape.
risk profile
average
stability score 3 — a middle-of-the-pack risk profile. not especially defensive, not a chaos stock either.
chart momentum
average
technical score 3 — the stock's move has been powerful, but the current read is more steady than euphoric.
earnings predictability
50 / 100
halfway up the scale means you should expect a real business, not a metronome. results are improving, but smoothness is not the main attraction.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 627 buyers vs. 512 sellers in 3q2025. total institutional holdings: 0.4B shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$144
$311
$250
current price
$228
target midpoint · 9% from current · 3-5yr high: $311
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