Europe
Howmet Aerospace Inc.’s Stock Performance and Future Outlook
• Howmet Aerospace Inc. (HWM) stock has seen a strong performance since its Q4 2024 results, trading close to its 52-week high of $140.55.
• The company’s non-GAAP earnings of 74 cents per share exceeded the Zacks Consensus Estimate by 2.8%, a 40% increase year over year.
• Revenues of $1.90 billion beat the consensus estimate by 0.7%, a 9% year over year increase.
• The commercial aerospace market is the strongest driver of Howmet’s business, with revenues from the commercial aerospace market increasing 12.9% year over year.
• The defense aerospace market has also seen positive momentum, with robust orders for engine spares for the F-35 program and other legacy fighters.
• The U.S. Senate Committee on Appropriations approved the fiscal year 2025 Defense Appropriations Act, providing $852.2 billion in total funding, a 3.3% increase over the approved funding during fiscal 2024.
• Howmet expects to generate revenues in the range of $7.93-$8.13 billion in 2025, indicating a year-over-year growth of 8% at the mid-point.
• The company’s sound liquidity position, including a healthy free cash flow of $977 million, is an added strength.
• HWM’s commitment to rewarding its shareholders through dividends and share buybacks is encouraging.
• The Zacks Consensus Estimate for Howmet’s 2025 earnings has increased 1.6% to $3.22 per share over the past 30 days, indicating a year-over-year growth of 19.7%.
• Despite its lofty valuation, Howmet’s robust growth prospects and positive analyst sentiment suggest it’s the right time for potential investors to invest in HWM.
