Howmet Aerospace (HWM)
Industrials · $89.9B market cap · SEC CIK 0000004281
fundamentals score out of 100
Next reports on Oct 28, 2026, before the open, with analysts expecting $1.38 in earnings per share.
The case for HWM
- Earns 34% back on shareholder equity.
- Generated $1.4B of free cash flow in FY2025, 17% of revenue.
- 21% of revenue drops through to net profit.
- Revenue growing 18.1% year over year.
- Earnings per share up 35.2%.
The case against
- Pricey at 48.1× earnings, against a long-run market average nearer 20×.
- The price trend is weak (41/100): +19.5% over a year, -18.1% over three months, 33% of the way up its 52-week range.
- Price/sales of 9.9× is higher than 99% of Industrials companies.
- Free-cash-flow yield of 1.6% is lower than 95% of Industrials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 17 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 80 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 79 |
| Momentumhow the price has behaved lately | 41 |
| Stabilityhow violently it moves, what it owes and what it pays you | 43 |
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
Key numbers
| Price / earnings | 48.1× |
|---|---|
| Price / book | 18.77× |
| Price / sales | 9.9× |
| Revenue growth (YoY) | +18.1% |
| EPS growth (YoY) | +35.2% |
| Gross margin | 36% |
| Operating margin | 27% |
| Net margin | 21% |
| Return on equity | 34% |
| Debt / equity | 0.79× |
| Current ratio | 1.82 |
| Dividend yield | 0.38% |
| Beta | 1.29 |
| 52-week range | $183.83 – $310.00 |
| Position in that range | 33% of the way up |
| 3-month return | -18.1% |
| 1-year return | +19.5% |
Five years of financials, as filed
Pulled from Howmet Aerospace's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $8.3B | $7.4B | $6.6B | $5.7B | $5.0B |
| Operating income | $2.0B | $1.6B | $1.2B | $919M | $748M |
| Net income | $1.5B | $1.2B | $765M | $469M | $258M |
| Operating cash flow | $1.9B | $1.3B | $901M | $733M | $449M |
| Capital expenditure | $453M | $321M | $219M | $193M | $199M |
| Total assets | $11.2B | $10.5B | $10.4B | $10.3B | $10.2B |
| Total liabilities | $5.8B | $6.0B | $6.4B | $6.7B | $6.7B |
| Shareholder equity | $5.4B | $4.6B | $4.0B | $3.6B | $3.5B |
| Cash | $742M | $564M | $610M | $791M | $720M |
| Long-term debt | $2.9B | $3.3B | $3.5B | $4.2B | $4.2B |
| Free cash flow | $1.4B | $977M | $682M | $540M | $250M |
| Operating margin | 24.8% | 22.0% | 18.1% | 16.2% | 15.0% |
| Net margin | 18.3% | 15.5% | 11.5% | 8.3% | 5.2% |
| Diluted shares | 406M | 410M | 416M | 421M | 435M |
Share count is down 6.7% over 4 years. Buybacks have been shrinking the pie.
What Howmet Aerospace says it does
Howmet Aerospace Inc. is a Delaware corporation with its principal office in Pittsburgh, Pennsylvania. In this report, unless the context otherwise requires, "Howmet", the "Company", "we", "us", and "our" refer to Howmet Aerospace Inc. and its consolidated subsidiaries. The Company’s Internet address is https://www.howmet.com. Howmet makes available free of charge on or through its website its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as well as proxy statements, as soon as reasonably practicable after the Company electronically files such material with, or furnishes it to, the Securities and Exchange Commission ("SEC"). The Company’s website is included in this annual report on Form 10-K as an inactive textual reference only. The information on, or accessible…
Risk factors HWM lists in its 10-K
- Risks Related to Our Business and Operations
- The markets for Howmet’s products are cyclical, and such markets and Howmet’s operations
- are influenced by a number of factors, including global economic conditions and regulations
- A material disruption of, or manufacturing difficulties at, Howmet’s manufacturing operations could adversely affect Howmet’s business
- Howmet is dependent on a limited number of suppliers for materials and services essential to our operations, including raw materials, and supply chain disruptions could have a material adverse effect on our business
- Howmet’s business depends, in part, on its ability to successfully meet program demand, production targets, and commitments
- Failure to attract and retain a qualified workforce and key personnel or to provide adequate succession planning could adversely affect Howmet’s operations and competitiveness
- Howmet could be adversely affected by the loss of key customers or significant changes in the business or financial condition of its customers
- Howmet faces significant competition, which may have an adverse effect on profitability
- Howmet’s global operations expose Howmet to risks that could adversely affect its business, financial condition, results of operations or cash flows, or the market price of its securities
- Howmet may not realize the expected benefits of acquisitions on the anticipated time frame or at all
- Risks Related to Liquidity and Capital Resources
- A decline in Howmet’s financial performance or outlook could negatively impact its credit profile, its access to capital markets and its borrowing costs
- Dividends and share repurchases fall within the discretion of our Board of Directors and depend on a number of factors