One-glance verdict
Overvalued
$92.24 our estimate vs market $229.16
Wall Street consensus: $337.74 (266.2% higher than our fair-value estimate)
148% above our estimate, beyond the bull case
Fundamentals snapshot
Howmet Aerospace Inc.
HWM · NYQ · Industrials · Aerospace & Defense
Current price
$229.16
52-week range
$182.78 - $310.00
Market cap
$91.39B
Balance sheet
Watch
14.11x Strong cushion
Net debt $4.10B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 10.5% last year.
- Reward Returns 34.7% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 5/10 years.
- Risk Stock trades 23.8% above its 5-year average P/E.
What this company does
Howmet Aerospace Inc.
Howmet Aerospace makes highly engineered parts for airplanes and commercial trucks, like fan blades for jet engines, specialized fasteners, and durable, lightweight wheels. The company earns most of its money from the aerospace industry, selling critical components to major plane manufacturers. This means Howmet's success is closely tied to the demand for new aircraft, which often increases as more people travel and more goods are shipped globally.
How the company got here
Howmet Aerospace's story begins with the aluminum giant Alcoa, which was founded in 1888. In 2016, Alcoa separated its business into two companies: a new Alcoa Corporation and Arconic Inc., which held the businesses that made specialized, engineered products. Just a few years later, in 2020, Arconic itself split into two, creating the modern Howmet Aerospace. This final move was designed to let Howmet Aerospace focus entirely on making high-tech, specialized parts for the aerospace and transportation industries.
What it actually does
Think of Howmet Aerospace as a specialty manufacturer of critical metal parts that have to withstand extreme stress and temperatures. You won't find their products on store shelves, but they are essential components inside airplanes and large trucks. The company makes everything from the blades inside a jet engine to the special fasteners holding an airplane's body together and the strong, lightweight aluminum wheels on big-rig trucks. Their expertise is in creating precisely engineered solutions where failure is not an option, which is why their business is so focused on the aerospace and defense industries.
Engine Products
This is Howmet's largest and most important business, making up more than half of the company's revenue. It manufactures the sophisticated parts found in the hottest sections of jet engines and industrial gas turbines, which are used to generate power. These parts include airfoils (the complex, sculpted blades that spin inside an engine) and seamless rolled rings that form the engine's structure. Major engine makers for commercial and military aircraft are the primary customers for this segment.
Fastening Systems
This division is the world leader in making the high-tech nuts, bolts, and special fasteners that hold an aircraft together from nose to tail. These aren't ordinary fasteners; they are precision-engineered components designed to be incredibly strong and reliable under the demanding conditions of flight. Beyond airplanes, this segment also produces fasteners for commercial trucks, industrial equipment, and even wind turbines. Customers include major aircraft manufacturers and their suppliers.
Engineered Structures
This part of the company creates large, structural components for aircraft, such as parts for the airframe, wings, and landing gear. They specialize in working with advanced materials like titanium and nickel-based alloys to produce strong, lightweight forgings and other complex parts. This segment serves both commercial airplane builders and defense contractors, providing the essential skeleton and structural supports for modern aircraft.
Forged Wheels
This segment invented the first forged aluminum truck wheel and is now a global leader in that market. It makes lightweight, durable aluminum wheels for heavy-duty trucks, trailers, and buses under the well-known Alcoa Wheels brand. The main customers are large truck manufacturers and commercial transportation fleets, who buy these wheels to save fuel (because they are lighter than steel) and reduce maintenance.
What management is betting on now
The company's current strategy is heavily focused on the growing demand in the commercial aerospace market as more new, fuel-efficient airplanes are built. Management is investing in expanding the company's production capacity (the ability to make more products) for its most in-demand engine parts and fasteners to meet this need. They are also focused on growing their aftermarket business, which involves selling replacement parts for existing aircraft, a steady and profitable source of revenue. The company also sees opportunities in the defense market and with industrial gas turbines used for power generation.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$162.00M
FY2024 Q4
$378.00M
FY2025 Q1
$134.00M
FY2025 Q2
$344.00M
FY2025 Q3
$423.00M
FY2025 Q4
$530.00M
FY2026 Q1
$359.00M
FY2026 Q2
$479.00M
Revenue
$2.55B
Net income
$534.00M
Diluted EPS
1.33
Operating cash flow
$583.00M
Free cash flow
$479.00M
Fetching…
Sources
Revenue
$2.31B
Net income
$580.00M
Diluted EPS
1.44
Operating cash flow
$453.00M
Free cash flow
$359.00M
Fetching…
Sources
Revenue
$2.17B
Net income
$372.00M
Diluted EPS
0.92
Operating cash flow
$654.00M
Free cash flow
$530.00M
Fetching…
Sources
Revenue
$2.09B
Net income
$385.00M
Diluted EPS
0.95
Operating cash flow
$531.00M
Free cash flow
$423.00M
Fetching…
Sources
Revenue
$2.05B
Net income
$407.00M
Diluted EPS
1.00
Operating cash flow
$446.00M
Free cash flow
$344.00M
Fetching…
Sources
Revenue
$1.94B
Net income
$344.00M
Diluted EPS
0.84
Operating cash flow
$253.00M
Free cash flow
$134.00M
Fetching…
Sources
Revenue
$1.89B
Net income
$314.00M
Diluted EPS
0.76
Operating cash flow
$480.00M
Free cash flow
$378.00M
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Sources
Revenue
$1.83B
Net income
$332.00M
Diluted EPS
0.81
Operating cash flow
$244.00M
Free cash flow
$162.00M
Fetching…
Sources
Is it cheap or expensive?
Fair value $92.24 vs current price $229.16
Wall Street consensus is the average analyst price target: $337.74 (266.2% higher than our fair-value estimate).
Our most-likely fair value is $92.24 a share — about 59.7% below today's price of $229.16, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $4.1B. Interest coverage 14.1x.
Net debt
$4.10B
Interest coverage
14.11x
Howmet Aerospace Inc.'s profit covers its interest bill about 14.1 times over. which is stronger than every peer shown here.
Watch
Worse cushion
Baseline
Better cushion
HWM
BASELINE
Howmet Aerospace Inc.
Total debt $4.66B Interest coverage 14.11x This is the baseline the peer rows are being compared against.
Total debt $33.49B Interest coverage 2.66x -81% vs HWM Carries about 5.3x less debt cushion than HWM.
Total debt $2.54B Interest coverage 7.85x -44% vs HWM Carries about 1.8x less debt cushion than HWM.
Total debt $1.38B Interest coverage 10.48x -26% vs HWM Carries about 1.3x less debt cushion than HWM.
What you should know
The case for and against HWM
3 Rewards
1 Risk
Rewards
-
Revenue grew 10.5% last year.
-
Returns 34.7% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 5/10 years.
Risks
-
Stock trades 23.8% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
49.28x
Forward P/E
35.49x
P/B
15.99x
P/S
10.02x
EV/EBITDA
33.54x
PEG ratio
0.80x
Profitability
How much profit each dollar creates
Gross margin
36.0%
Operating margin
28.5%
Net margin
20.5%
ROE
34.7%
ROA
12.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.81x
Current ratio
1.82x
Quick ratio
0.69x
Total debt
$4.66B
Total cash
$563.00M
Growth
How the business has been compounding
Revenue TTM
$9.12B
Revenue 5Y CAGR
13.5%
EPS TTM
4.65
EPS 5Y CAGR
49.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.22B
Free CF TTM
$1.43B
FCF margin
15.7%
Dividend
Shareholder payout
Yield
0.2%
Payout ratio
10.3%
Last ex-div date
2026-08-07