Howmet Aerospace (NYSE:HWM) Issues Quarterly Earnings Results

Howmet Aerospace (NYSE:HWM) posted its earnings results on Thursday. The company reported $1.05 EPS for the quarter, topping the consensus estimate of $0.97 by $0.08, FiscalAI reports. Howmet Aerospace had a net margin of 18.27% and a return on equity of 30.41%. The firm had revenue of $2.17 billion during the quarter, compared to analysts’ expectations of $2.12 billion. During the same period last year, the company posted $0.77 EPS. The company’s quarterly revenue was up 14.6% compared to the same quarter last year. Howmet Aerospace updated its Q1 2026 guidance to 1.090-1.110 EPS and its FY 2026 guidance to 4.350-4.550 EPS.

Here are the key takeaways from Howmet Aerospace’s conference call:

• Howmet reported a strong Q4 and full‑year 2025 with Q4 revenue $2.17B (+15%), full‑year revenue +11%, Q4 EBITDA $653M (+29%) and record full‑year EBITDA of $2.42B, while free cash flow was a record $1.43B with 93% conversion of net income.
• Demand tailwinds across core markets — commercial aerospace, defense, and gas turbines — drove spares growth (spares up ~33% to $1.7B, now 21% of revenue) and strong gas turbine growth (Q4 +32%, FY +25%), supporting durable revenue upside.
• Company is investing heavily for growth — record 2025 CapEx of $453M (2026 midpoint ~ $470M), ~1,500 net new hires, multiple new/expanded plants and automation — which should boost long‑term capacity but may create short‑term startup friction and margin pressure.
• Capital allocation remains shareholder‑friendly and conservative: ~$1.2B deployed in 2025 (including ~$700M buybacks), debt reduced ~$265M to net leverage ~1x, cash balance $743M and ~ $1.35B share‑repurchase authorization remaining, preserving flexibility.
• Strategic M&A underway — acquired Bruner (bolts/long‑length capability) and agreed to buy CAM for <$strong> $1.8B to broaden fasteners/fittings exposure; transactions expand addressable market but carry integration and regulatory timing risk and the 2026 guide excludes CAM.

Howmet Aerospace Stock Performance

HWM stock opened at $250.46 on Friday. The stock has a market capitalization of $100.70 billion, a PE ratio of 67.51, a price-to-earnings-growth ratio of 2.32 and a beta of 1.26. Howmet Aerospace has a 12-month low of $105.04 and a 12-month high of $256.70. The company has a current ratio of 2.13, a quick ratio of 1.14 and a debt-to-equity ratio of 0.53. The stock’s 50 day simple moving average is $212.52 and its 200 day simple moving average is $197.94.

Howmet Aerospace Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, February 25th. Investors of record on Friday, February 6th will be issued a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a yield of 0.2%. The ex-dividend date is Friday, February 6th. Howmet Aerospace’s payout ratio is presently 13.48%.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of HWM. Brighton Jones LLC increased its holdings in 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 buying 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 valued at about $399,000. Sivia Capital Partners LLC bought a new stake in shares of Howmet Aerospace in the second quarter worth approximately $216,000. Brown Advisory Inc. grew its stake in shares of Howmet Aerospace by 31.0% in the second quarter. Brown Advisory Inc. now owns 4,180 shares of the company’s stock worth $778,000 after acquiring an additional 990 shares during the period. Finally, Cary Street Partners Financial LLC purchased a new position in shares of Howmet Aerospace during the second quarter valued at approximately $145,000. Hedge funds and other institutional investors own 90.46% of the company’s stock.

Analysts Set New Price Targets

A number of research firms have recently commented on HWM. The Goldman Sachs Group raised their target price on Howmet Aerospace from $205.00 to $226.00 and gave the company a “buy” rating in a research note on Monday, November 3rd. Morgan Stanley restated an “overweight” rating and set a $280.00 target price on shares of Howmet Aerospace in a report on Friday. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $247.00 target price on shares of Howmet Aerospace in a research report on Tuesday, January 6th. iA Financial set a $240.00 price objective on shares of Howmet Aerospace in a research note on Monday, November 3rd. Finally, UBS Group upped their price objective on shares of Howmet Aerospace from $199.00 to $209.00 and gave the stock a “neutral” rating in a report on Friday, October 31st. One analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $234.72.

Key Headlines Impacting Howmet Aerospace

Here are the key news stories impacting Howmet Aerospace this week:

• Positive Sentiment: Q4 beat and strong financials — Howmet reported adjusted EPS $1.05 (vs. $0.97 est.), revenue roughly $2.17B (beat), double‑digit revenue growth and margin expansion, citing record profit and cash generation. Howmet Aerospace Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Raised guidance — HWM set Q1 2026 EPS guidance of $1.09–1.11 and FY2026 EPS $4.35–4.55, with revenue guidance above consensus, giving investors more confidence in near‑term execution. Howmet forecasts first-quarter profit above estimates on strong aerospace demand
• Positive Sentiment: Durable multi‑year growth thesis — Analysts point to three aligned growth engines (commercial aerospace, aftermarket/spare parts mix and gas‑turbine demand) and strong incremental margins that support a premium multiple. Howmet Aerospace: Premium Valuation Justified By Rare Multi-Year Growth
• Positive Sentiment: Capital returns and cash flow — FY2025 showed heavy cash generation, large buybacks ($700M YTD) and a dividend, which supports shareholder returns and offsets some valuation concerns. Howmet Aerospace Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Primary materials for due diligence — The full earnings call transcript and slide deck are available for detailed review of segment dynamics and backlog. Howmet Aerospace Inc. (HWM) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Market context — Broader equity markets were positive on the day, which likely helped momentum in industrial and aerospace stocks including HWM. Continuing Claims Climb for a Second Week
• Negative Sentiment: Valuation sensitivity — Several writeups note an elevated P/E (and commentary about 50+ P/E ranges), so the stock could be vulnerable to any slowdown in aerospace demand or a miss vs. current high expectations. Howmet Aerospace: Earnings And Share Price Continue Skyward, 50+ P/E

About Howmet Aerospace

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.