📊 HWM Key Takeaways
Is Howmet Aerospace Inc. (HWM) a Good Investment?
Strong fundamental business with exceptional 32.6% operating margins and accelerating profit growth (30.6% net income growth) outpacing revenue expansion, demonstrating operational leverage. Fortress balance sheet with 15.4x interest coverage and 2.44x current ratio provides resilience, while $359M free cash flow supports shareholder returns and deleveraging.
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 32.6% operating margin and 25.1% net margin, well above manufacturing sector averages
- Profit growth (30.6% net income growth) accelerating faster than revenue growth (11.1%), indicating improving operational efficiency and leverage
- Fortress financial position: 15.4x interest coverage, 0.73x debt-to-equity, 2.44x current ratio provides significant downside protection
- Strong free cash flow generation of $359M annually (15.5% FCF margin) with manageable capex requirements
- Solid revenue growth of 11.1% YoY supported by aerospace sector demand
- 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
- Modest return on equity of 10.5% despite strong margins suggests significant asset base inefficiency or integration of prior acquisitions
- Aerospace and defense sector is highly cyclical; current 11.1% revenue growth may not be sustainable through downturn
- Long-term debt of $4.0B limits financial flexibility and increases vulnerability to sharp demand deterioration
- Capital-intensive business model with $94M annual capex reduces true cash conversion efficiency
- 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 - watch for deterioration from current 32.6% as competitive or cost pressures emerge
- Free cash flow conversion ratio - ensure capital efficiency remains strong and company can fund growth plus shareholder returns
- Aerospace sector demand indicators - monitor commercial aircraft build rates and defense spending trends for cyclical inflection
- Return on equity expansion - track whether growth translates to improved capital efficiency above current 10.5%
- Net debt reduction trajectory - monitor deleveraging progress given $4.0B long-term debt load
- 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 2.44x 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. has mixed fundamental signals 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 |
|---|---|---|---|
| Q1 2026 | $1.9B | $344.0M | $0.84 |
| 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 |
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 (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 32.6% operating margin and 25.1% net margin, well above manufacturing sector averages. Profit growth (30.6% net income growth) accelerating faster than revenue growth (11.1%), indicating improving operational efficiency and leverage. 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: Modest return on equity of 10.5% despite strong margins suggests significant asset base inefficiency or integration of prior acquisitions. Aerospace and defense sector is highly cyclical; current 11.1% revenue growth may not be sustainable through downturn. 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 $2.3B.
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 $1.44.
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 May 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 10.5% (sector avg: 14%), net margin of 25.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
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 $453.0M, with capital expenditures of $94.0M. FCF margin is 15.5%.
How does HWM compare to other Materials stocks?
Vs Materials sector averages: Net margin 25.1% (avg: 10%), ROE 10.5% (avg: 14%), current ratio 2.44 (avg: 1.6).