📊 HWM Key Takeaways
Is Howmet Aerospace Inc. (HWM) a Good Investment?
Howmet demonstrates exceptional fundamentals with 24.8% operating margins, 18.3% net margins, and accelerating growth where net income (+30.6%) significantly outpaces revenue growth (+11.1%), indicating strong operational leverage. The company maintains fortress-like financial health with 28.2% ROE, 0.57x debt/equity, 41.8x interest coverage, and generates robust free cash flow of $1.4B annually.
Double‑digit revenue growth with outsized operating leverage (24.8% operating margin) is driving a 30%+ increase in net income and strong EPS expansion. Balance sheet strength (0.57x D/E, 41.8x interest cover) and robust free cash flow (17.3% FCF margin) support reinvestment and capital returns while mitigating cyclicality. Fundamentals indicate a high‑quality compounder in aerospace components with durable cash generation.
Why Buy Howmet Aerospace Inc. Stock? HWM Key Strengths
- Exceptional profitability with 24.8% operating margin and 18.3% net margin, far exceeding manufacturing industry averages
- Accelerating growth with operational leverage - net income growing 30.6% vs revenue 11.1% demonstrates pricing power and efficiency gains
- Fortress balance sheet - 0.57x debt/equity, 41.8x interest coverage, $742M cash, and strong 2.13x current ratio provide financial flexibility
- High and improving profitability (24.8% operating, 18.3% net margin)
- Strong free cash flow and cash conversion (FCF margin 17.3%)
- Healthy balance sheet with low leverage and excellent interest coverage
HWM Stock Risks: Howmet Aerospace Inc. Investment Risks
- Aerospace industry cyclicality - economic downturns materially impact aircraft demand and customer order books
- Supplier concentration and customer dependency - heavy reliance on Boeing, Airbus, and other large OEMs limits diversification
- Raw material price volatility - non-ferrous metals business exposed to commodity fluctuations that could compress margins
- Aerospace production cycle sensitivity and OEM delivery volatility
- Commodity/energy cost inflation pressuring margins
- Customer concentration and supply chain disruptions affecting volumes and mix
Key Metrics to Watch
- Operating margin sustainability - maintain 24.8% levels amid potential raw material inflation
- Free cash flow conversion and capital efficiency - monitor $1.4B FCF relative to growth investments
- Debt/equity ratio trajectory - ensure leverage remains conservative if acquisition opportunities arise in aerospace consolidation
- Operating margin trajectory
- Free cash flow conversion (OCF/Net income)
Howmet Aerospace Inc. (HWM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.13x current ratio provides a solid financial cushion.
HWM Profit Margin, ROE & Profitability Analysis
HWM vs Materials Sector: How Howmet Aerospace Inc. Compares
How Howmet Aerospace Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Howmet Aerospace Inc. Stock Overvalued? HWM Valuation Analysis 2026
Based on fundamental analysis, Howmet Aerospace Inc. appears fundamentally strong relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Howmet Aerospace Inc. Balance Sheet: HWM Debt, Cash & Liquidity
HWM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Howmet Aerospace Inc.'s revenue has grown significantly by 16% over the 5-year period, indicating strong business expansion. The most recent EPS of $1.83 reflects profitable operations.
HWM Revenue Growth, EPS Growth & YoY Performance
HWM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.8B | $332.0M | $0.81 |
| Q2 2025 | $1.9B | $266.0M | $0.65 |
| Q1 2025 | $1.8B | $243.0M | $0.59 |
| Q3 2024 | $1.7B | $188.0M | $0.45 |
| Q2 2024 | $1.6B | $193.0M | $0.46 |
| Q1 2024 | $1.6B | $148.0M | $0.35 |
| Q3 2023 | $1.4B | $80.0M | $0.19 |
| Q2 2023 | $1.4B | $147.0M | $0.35 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Howmet Aerospace Inc. Dividends, Buybacks & Capital Allocation
HWM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Howmet Aerospace Inc. (CIK: 0000004281)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HWM
What is the AI rating for HWM?
Howmet Aerospace Inc. (HWM) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HWM's key strengths?
Claude: Exceptional profitability with 24.8% operating margin and 18.3% net margin, far exceeding manufacturing industry averages. Accelerating growth with operational leverage - net income growing 30.6% vs revenue 11.1% demonstrates pricing power and efficiency gains. ChatGPT: High and improving profitability (24.8% operating, 18.3% net margin). Strong free cash flow and cash conversion (FCF margin 17.3%).
What are the risks of investing in HWM?
Claude: Aerospace industry cyclicality - economic downturns materially impact aircraft demand and customer order books. Supplier concentration and customer dependency - heavy reliance on Boeing, Airbus, and other large OEMs limits diversification. ChatGPT: Aerospace production cycle sensitivity and OEM delivery volatility. Commodity/energy cost inflation pressuring margins.
What is HWM's revenue and growth?
Howmet Aerospace Inc. reported revenue of $8.3B.
Does HWM pay dividends?
Howmet Aerospace Inc. pays dividends, with $114.0M distributed to shareholders in the trailing twelve months.
Where can I find HWM SEC filings?
Official SEC filings for Howmet Aerospace Inc. (CIK: 0000004281) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HWM's EPS?
Howmet Aerospace Inc. has a diluted EPS of $3.71.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is HWM a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Howmet Aerospace Inc. has a BUY rating with 84% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is HWM stock overvalued or undervalued?
Valuation metrics for HWM: ROE of 28.2% (sector avg: 14%), net margin of 18.3% (sector avg: 10%). Higher ROE suggests strong returns relative to peers.
Should I buy HWM stock in 2026?
Our dual AI analysis gives Howmet Aerospace Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is HWM's free cash flow?
Howmet Aerospace Inc.'s operating cash flow is $1.9B, with capital expenditures of $453.0M. FCF margin is 17.3%.
How does HWM compare to other Materials stocks?
Vs Materials sector averages: Net margin 18.3% (avg: 10%), ROE 28.2% (avg: 14%), current ratio 2.13 (avg: 1.6).
Why is HWM's return on equity (ROE) so high?
Howmet Aerospace Inc. has a return on equity of 28.2%, significantly above the Materials sector average of 14%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 18.3% net margin.