Key Takeaways Defense aerospace sales made up 17% of Howmet's Q2 revenues, rising 21% year over year.F-35 engine spares and fighter jet parts continue to drive growth in the Engineered Structures unit.A strong defense budget and new military programs support sustained demand momentum for HWM.Howmet Aerospace Inc.’s (HWM) defense aerospace market is playing a significant role in driving its overall growth. In second-quarter 2025, the company’s revenues from the defense aerospace market accounted for 17% of i ...

With a market cap of $73.2 billion, Howmet Aerospace Inc. (HWM) is a leading aerospace and industrial components manufacturer. Headquartered in Pennsylvania, the company specializes in engineered metal products, including turbine engine components, fasteners, and structural parts for the aerospace, defense, and industrial markets. The company is expected to release its fiscal Q3 2025 earnings results on Thursday, Oct. 30. Ahead of this event, analysts project HWM to report an adjusted EPS of $0.91, a 28.2 ...

In the latest trading session, Howmet (HWM) closed at $189.68, marking a -1.04% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.53%. On the other hand, the Dow registered a gain of 0.52%, and the technology-centric Nasdaq increased by 0.52%. Coming into today, shares of the maker of engineered products for the aerospace and other industries had lost 0.08% in the past month. In that same time, the Aerospace sector gained 0.21%, while the S&P 500 gained 0.71%. Inv ...

Core Insights - Howmet Aerospace Inc. (HWM) demonstrates strong operational execution and margin resilience despite cost pressures, with a 6.1% year-over-year increase in cost of sales in Q2 2025 [1] - The company has consistently expanded its adjusted EBITDA margin, reaching 28.7% in Q2 2025, a 300-basis point improvement from the previous year [2][8] - Strong demand from commercial and defense aerospace markets has led Howmet to raise its 2025 adjusted EBITDA margin outlook to 28.5-28.6% [4] Financial Performance - In Q2 2025, Howmet's adjusted EBITDA margin rose from 26.5% in Q3 2024 to 28.7%, reflecting effective pricing actions and a favorable product mix [2][8] - The Engine Products, Fastening Systems, and Engineered Structures segments reported margin gains of 200, 360, and 690 basis points, respectively [3] - Howmet's shares have surged 82.9% over the past year, significantly outperforming the industry growth of 17.8% [7] Peer Comparison - GE Aerospace's cost of sales increased by 22.8% year-over-year in Q2 2025, with an adjusted operating profit increase of 23% but a slight decline in adjusted operating margin [5] - RTX Corporation's total costs and expenses rose 6.4% year-over-year to $19.48 billion, with an adjusted operating profit of $2.79 billion [6] Valuation and Estimates - Howmet is currently trading at a forward price-to-earnings ratio of 46.12X, above the industry average of 28.86X [10] - The Zacks Consensus Estimate for HWM's 2025 earnings has increased slightly over the past 60 days, indicating positive sentiment [11]

Core Insights - Howmet Aerospace Inc (NYSE:HWM) is highlighted as a trending stock amid AI bubble warnings, with positive sentiment from investment analysts [1] - Joseph Terranova, a Senior Managing Director at Virtus Investment Partners, expressed a preference for Howmet Aerospace over Parker Hannifin, noting both companies benefit from their multinational status [2] Financial Performance - Howmet Aerospace reported a significant increase in its stock value, with a 45% rise noted in Fidelity Growth Strategies Fund's second quarter 2025 investor letter [2] - The company has experienced a post-COVID recovery in air travel, leading to record financial results in 2024 and further positive outcomes in Q1 2025, including record revenue and an all-time high profit [2] - Howmet Aerospace allocated $125 million for stock repurchases, indicating strong financial health and shareholder return strategies [2] Market Position - Howmet Aerospace holds a larger multinational exposure at 50% compared to Parker Hannifin's 40%, which may contribute to its stronger performance [2] - The company is positioned as a key player in the aerospace sector, particularly in the production of jet engine components, benefiting from surging demand [2]

Core Viewpoint - Analysts are warning of a potential correction in the AI-led stock rally, but this does not imply that investors should avoid high-quality AI companies, as corrections can happen quickly and without warning [2]. Group 1: AI and Market Trends - The AI market is experiencing elevated stock valuations, which analysts believe cannot sustain indefinitely, indicating a forthcoming "reckoning" [2]. - Despite the anticipated correction, investors are encouraged to focus on position sizing rather than making binary in-and-out decisions [2]. Group 2: Hedge Fund Interest - Hedge funds are increasingly investing in specific stocks, with research indicating that mimicking top hedge fund picks can lead to market outperformance [5]. Group 3: Company Highlights - **Mosaic Co (NYSE:MOS)**: The company is experiencing a multi-month breakout and expects tight phosphate markets through 2025 due to limited supply and lower inventories [6][7]. - **Advanced Micro Devices Inc (NASDAQ:AMD)**: The company is positioned to improve its market share in AI applications by 2027, despite current reliance on OpenAI for capital spending [8][9]. - **Howmet Aerospace Inc (NYSE:HWM)**: The company reported record financial results in 2024 and continued strong performance in Q1 2025, with significant stock repurchases [10][11]. - **TKO Group Holdings Inc (NYSE:TKO)**: The company is expected to grow EBITDA at a mid-teens rate for 2025, with a focus on renewing UFC media rights, which account for over 15% of revenues [12][14][15]. - **Zoom Communications Inc (NASDAQ:ZM)**: The company is no longer viewed as a growth story, with low single-digit revenue growth and a significant decline in customer growth rates [17][18]. - **DoorDash Inc (NASDAQ:DASH)**: The leading food delivery platform in the U.S. exceeded expectations with a 19% year-over-year growth in orders and a 56% rise in adjusted EBITDA [18][19].

Key Takeaways HWM's shares surged 87.7% in a year, outpacing peers and trading near their 52-week high.Aerospace revenues rose 8% in Q2 2025, while defense sales jumped 21% on strong F-35 engine orders.Weak transportation demand and high input costs weigh on HWM, now trading at a rich 46.53X P/E.Howmet Aerospace Inc.’s (HWM) investors have been witnessing impressive gains from the stock of late. Shares of the advanced engineered solutions provider for the aerospace and transportation industries have surged ...

Key Takeaways Commercial aerospace sales rose 8% in Q2 2025, making up more than half of Howmet's revenues.Engine Products segment grew 13.2% in Q2, boosted by new aircraft and rising spare engine demand.Recovery at Boeing and strong Airbus build rates are set to support HWM's future demand momentum.The strongest driver of Howmet Aerospace Inc.’s (HWM) business at the moment is the commercial aerospace market. Revenues from the market increased 8% year over year in the second quarter of 2025, constituting m ...

Group 1: Company Performance - Howmet (HWM) closed at $191.08, reflecting a -1.93% change from the previous day, underperforming the S&P 500's gain of 0.06% [1] - Over the past month, Howmet's shares have increased by 11.67%, outperforming the Aerospace sector's gain of 4.81% and the S&P 500's gain of 3.94% [1] Group 2: Earnings Forecast - Howmet is expected to report earnings on October 30, 2025, with a forecasted EPS of $0.9, indicating a 26.76% increase from the same quarter last year [2] - Revenue is projected to be $2.04 billion, reflecting an 11.3% growth compared to the corresponding quarter of the previous year [2] Group 3: Annual Estimates - For the annual period, earnings are anticipated to be $3.57 per share, with revenue expected at $8.12 billion, representing increases of +32.71% and +9.35% respectively from the last year [3] Group 4: Analyst Sentiment - Changes in analyst estimates for Howmet are crucial as they often indicate shifts in short-term business dynamics, with positive revisions suggesting analyst optimism about profitability [3][4] Group 5: Zacks Rank and Performance - Howmet currently holds a Zacks Rank of 2 (Buy), with the Zacks Rank system showing a strong track record of performance, particularly for 1 stocks which have averaged a +25% annual return since 1988 [5] Group 6: Valuation Metrics - Howmet is trading at a Forward P/E ratio of 54.53, significantly higher than the industry average of 26.16, indicating a premium valuation [6] - The company has a PEG ratio of 2.53, compared to the Aerospace - Defense industry's average PEG ratio of 2.22, suggesting a higher expected earnings growth trajectory [7] Group 7: Industry Ranking - The Aerospace - Defense industry, part of the Aerospace sector, currently has a Zacks Industry Rank of 138, placing it in the bottom 45% of over 250 industries [7][8]

Howmet Aerospace (NYSE: HWM ), a leading player in the aerospace industry, is one of the top-performing stocks this year, driven by secular growth trends in airplane spare parts. It is up 78.03% year-to-date, compared to the S&P 500's (I have been a Merchant Seaman that has traveled the world for over 30 years. Within the last 15 years, I developed a very intense interest in investing. I learned a lot of what I know about investing from The MF. Also because I have a engineering background, I often tend to g ...