Company Overview - Howmet Aerospace Inc. is based in Pittsburgh, Pennsylvania, and was founded in 1888, providing advanced engineered solutions for the aerospace and transportation industries both in the U.S. and internationally [1] - The company has a market capitalization of $88.6 billion and is set to release its Q4 2025 earnings report on February 12 [1] Earnings Expectations - Analysts expect Howmet Aerospace to report a profit of $0.96 per share for Q4 2025, which represents a 29.7% increase from $0.74 per share in the same quarter last year [2] - For fiscal 2025, the expected EPS is $3.69, marking a nearly 37.2% rise from $2.69 in fiscal 2024, with further growth anticipated to $4.41 in fiscal 2026, reflecting a year-over-year increase of 19.5% [3] Stock Performance - HWM stock has increased by 84% over the past 52 weeks, significantly outperforming the S&P 500 Index's 16.7% rise and the State Street Industrial Select Sector SPDR ETF's 22.5% return during the same period [4] Recent Developments - On December 22, HWM stock rose by 2.3% following the announcement of the acquisition of Consolidated Aerospace Manufacturing, LLC for $1.8 billion, which enhances the company's portfolio in precision fasteners and complex engineered products for aerospace and defense applications [5] Analyst Ratings - The consensus opinion among analysts is very optimistic, with a "Strong Buy" rating overall; out of 23 analysts, 18 recommend a "Strong Buy," one a "Moderate Buy," and four suggest a "Hold" [6] - The average analyst price target for HWM is $235.53, indicating a potential upside of 5% from current levels [6]

Core Viewpoint - Howmet Aerospace Inc. will announce its fourth quarter and full year 2025 financial results on February 12, 2026, with a conference call scheduled for the same day at 10:00 AM ET [1]. Group 1: Financial Results Announcement - The financial results announcement will be available at approximately 7:00 AM ET on February 12, 2026, via the "Investors" section of the Howmet Aerospace website [1]. - The conference call will be hosted by John Plant, Executive Chairman and Chief Executive Officer, and Patrick Winterlich, Executive Vice President and Chief Financial Officer [2]. Group 2: Conference Call Information - The conference call will take place on Thursday, February 12, 2026, at 10:00 AM ET [2]. - Participants can pre-register for the conference call through a provided link [2]. - The call can be accessed via U.S. Toll Free: +1-844-481-2703 and International Toll: +1-412-317-0659 [2]. Group 3: Replay Information - A webcast replay of the call will be available on the "Investors/Events and Presentations" section of the Howmet website [3]. - Telephone replay will be available from two hours after the live call until February 26, 2026, at 11:59 PM ET [3]. - Replay access codes and numbers for U.S., Canada, and international callers are provided for convenience [3]. Group 4: Company Overview - Howmet Aerospace Inc. is a leading global provider of advanced engineered solutions for the aerospace and transportation industries, focusing on jet engine components, aerospace fastening systems, and airframe structural components [4]. - The company holds approximately 1,150 granted and pending patents, enabling the development of lighter, more fuel-efficient aircraft and commercial trucks with a lower carbon footprint [4].

Core Viewpoint - Investors are evaluating Huntington Ingalls (HII) and Howmet (HWM) for potential value opportunities in the Aerospace - Defense sector, with HII currently presenting a more favorable investment case [1]. Valuation Metrics - HII has a forward P/E ratio of 23.17, while HWM has a significantly higher forward P/E of 49.87 [5]. - HII's PEG ratio stands at 1.61, indicating a more favorable valuation relative to its expected earnings growth, compared to HWM's PEG ratio of 2.09 [5]. - HII's P/B ratio is 3.14, which is substantially lower than HWM's P/B ratio of 17.4, suggesting HII is more attractively valued based on market versus book value [6]. Earnings Estimates and Rankings - HII holds a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while HWM has a Zacks Rank of 3 (Hold) [3]. - The stronger estimate revision activity for HII suggests that its earnings outlook is improving more significantly than that of HWM [7]. Value Grades - HII has been assigned a Value grade of B, whereas HWM has a Value grade of D, reflecting HII's superior valuation metrics [6].

Core Insights - Howmet Aerospace Inc. is facing ongoing challenges in its commercial transportation market, with a 3% year-over-year revenue decline in Q3 2025, following declines of 14% and 4% in the first two quarters of the year [1][8] Group 1: Commercial Transportation Market - The decline in commercial truck builds due to tariff-related and economic uncertainties in North America is negatively impacting the company's near-term performance [2] - Demand in the Forged Wheels segment is expected to remain weak due to lower OEM builds, rising raw material costs, particularly aluminum, and stringent emission regulations [2][8] Group 2: Supply Chain and Operational Challenges - Howmet Aerospace is vulnerable to supply-chain volatility, which has resulted in delays and increased costs in recent years, potentially affecting the timely delivery of products [3] Group 3: Aerospace Market Strength - Despite difficulties in the commercial transportation sector, Howmet Aerospace is benefiting from strong demand in the commercial and defense aerospace markets, particularly for F-35 engine spares and aerospace fastening systems [4][8] Group 4: Peer Comparison - ITT Inc.'s Motion Technologies segment is experiencing strong demand, with organic revenues rising 1.4% year-over-year in the first nine months of 2025, and expects overall organic sales to increase by 3-5% [5] - Kennametal Inc.'s Metal Cutting segment is also performing well, with a 3% year-over-year increase in organic revenues in the first three months of fiscal 2026, driven by increased aerospace OEM build rates and robust defense spending [6] Group 5: Financial Performance and Valuation - Howmet Aerospace's shares have increased by 84.7% over the past year, outperforming the industry growth of 36.1% [7] - The company is currently trading at a forward price-to-earnings ratio of 49.51X, which is above the industry average of 32.53X, and carries a Value Score of D [10]

Group 1: Samsung Biologics Acquisition - Samsung Biologics is investing $280 million to establish its first U.S. manufacturing site in Rockville, Maryland, which will enhance its global manufacturing footprint [2] - The acquisition includes two manufacturing plants from GSK with a total production capacity of 60,000 liters [2] - The company plans to retain the existing 500 workers at the site and invest in additional capacity and technology to strengthen its U.S. supply chain [3] - This acquisition is described as a "landmark" move by CEO John Rim, aimed at deepening collaboration with U.S. stakeholders [4] - The deal would provide Samsung Biologics a 100% stake in Human Genome Sciences, previously acquired by GSK for $3.6 billion in 2012 [3] Group 2: GSK's Strategic Moves - GSK is divesting its Rockville manufacturing plants to improve its balance sheet and focus on deals that align with its strategic goals [5] - The company has committed to investing $30 billion in research and development and manufacturing in the U.S. over the next five years [5] Group 3: Howmet Aerospace Acquisition - Howmet Aerospace is set to acquire Consolidated Aerospace Manufacturing from Stanley Black & Decker for $1.8 billion in cash [6] - This acquisition is expected to increase Howmet's revenue by nearly $500 million and provide significant tax benefits for fiscal year 2026 [7] - CEO John Plant emphasized that this acquisition is a "major step" in expanding and diversifying Howmet's fastener portfolio, highlighting the complementary nature of CAM's brands and engineering capabilities [7]

Company Performance - Howmet (HWM) stock closed at $210.90, reflecting a -1.77% change from the previous day's closing price, which is less than the S&P 500's daily loss of 0.34% [1] - In the past month, Howmet's shares have gained 12.19%, outperforming the Aerospace sector's gain of 9.73% and the S&P 500's gain of 1.19% [2] Earnings Forecast - Howmet is expected to report an EPS of $0.96, indicating a 29.73% increase from the same quarter last year, with projected net sales of $2.12 billion, up 12.22% year-over-year [3] - For the full year, earnings are projected at $3.69 per share and revenue at $8.21 billion, representing a 37.17% increase in earnings and no change in revenue from the prior year [4] Analyst Estimates and Valuation - Recent changes in analyst estimates for Howmet are seen as a positive indicator for business outlook, with the Zacks Consensus EPS estimate having moved 0.05% lower in the past month [4][6] - Howmet is currently trading at a Forward P/E ratio of 48.64, significantly higher than the industry average of 22.82, indicating a premium valuation [7] - The company has a PEG ratio of 2.05, compared to the Aerospace - Defense industry's average PEG ratio of 1.79, suggesting that Howmet's valuation is higher relative to its expected earnings growth [8] Industry Context - The Aerospace - Defense industry, which includes Howmet, has a Zacks Industry Rank of 106, placing it in the top 44% of over 250 industries, indicating strong performance potential [8]

Core Viewpoint - Howmet Aerospace Inc. (HWM) has experienced significant stock performance, with shares recently trading at over $211, nearing its 52-week high of $216.38, and a year-over-year increase of 92.3%, outperforming the S&P 500 and industry averages [1][2][3] Stock Performance - HWM shares closed at $214.69, reflecting a strong upward momentum as they trade above both 50-day and 200-day moving averages, indicating positive market sentiment [1][4] - The stock has outperformed competitors such as RTX Corporation and General Dynamics, which returned 65.9% and 39% respectively over the past year [2] Market Drivers - The commercial aerospace market is a key growth driver, with revenues increasing 15% year over year in Q3 2025, making up 53% of the company's business [9][10] - Demand for engine spares and a record backlog for new aircraft are contributing to revenue growth, supported by healthy build rates at Airbus and a recovery in Boeing 737 MAX production [10] Defense Sector Growth - The defense aerospace market is also a significant contributor, with revenues rising 24% year over year in Q3, accounting for 17% of total revenues [11] - Recent legislative support for defense spending, including the fiscal year 2026 Defense Appropriations Act, is expected to bolster Howmet's defense business [12] Shareholder Value Initiatives - The company is focused on enhancing shareholder value through dividends and share repurchases, having paid $131 million in dividends and repurchased $500 million in shares in the first nine months of the year [13] - A 20% increase in dividends to 12 cents per share was announced in August 2025, marking the second hike in 2025 [13] Earnings Estimates - Analysts have revised earnings estimates upward, with the Zacks Consensus Estimate for 2025 earnings at $3.69 per share, reflecting a year-over-year growth of 37.2% [14] - The consensus for 2026 earnings is projected at $4.41 per share, indicating a 19.7% increase [14] Challenges - The commercial transportation market has shown persistent weakness, with revenues declining 3% year over year in Q3 2025, following declines in previous quarters [15] - High input costs and operating expenses have also impacted profitability, with the cost of goods sold increasing 7.3% year over year to $5.1 billion in 2024 [16] Valuation Concerns - Howmet's stock is trading at a forward P/E ratio of 48.45X, significantly higher than the industry average of 31.64X and its peers, making it potentially vulnerable to market corrections [17] Conclusion - Despite strong momentum and shareholder-friendly policies, near-term challenges such as weakness in the commercial transportation market and high valuation may limit HWM's prospects [19]

Group 1 - Howmet Aerospace Inc. is acquiring Consolidated Aerospace Manufacturing for $1.8 billion in cash, with the transaction expected to close around mid-Q2 2026 [2][3] - The acquisition is projected to add approximately 2% to Howmet's EPS in 2026 and over 3% in the first full year post-closing, with expected revenue from the acquired company between $485 million and $495 million for FY26 [2] - Howmet has raised its 2025 revenue forecast to a range of $8.18 billion to $8.2 billion, up from a previous estimate of $8.08 billion to $8.18 billion, and adjusted earnings expectations have also increased to $3.66 to $3.68 per share [4] Group 2 - For Q3, Howmet reported adjusted earnings of $0.95 per share, exceeding Wall Street's estimate of $0.91, with revenue of $2.09 billion, surpassing the expected $2.04 billion [4] - Jefferies maintains a Buy rating on Howmet with a price target of $245, indicating confidence in the company's growth prospects following the acquisition [2]

Core Insights - Howmet Aerospace Inc. (HWM) is experiencing significant growth in its defense aerospace market, with revenues increasing by 24% year over year in Q3 2025, driven by strong demand for engine spares related to the F-35 program and legacy fighter jets [1][8]. Group 1: Company Performance - HWM's Engineered Structures segment reported a 9% year-over-year revenue growth in the first nine months of 2025, supported by a solid pipeline of military aircraft programs and a robust defense budget [2]. - The company's shares have gained 8.3% over the past three months, outperforming the industry growth of 1.9% [7]. Group 2: Market Environment - The House of Representatives passed the fiscal year 2026 Defense Appropriations Act in July 2025, providing strong budgetary support for defense, which is favorable for HWM's business focus [3]. - Favorable geopolitical developments and consistent government support are enhancing HWM's ability to secure new contracts in the defense aerospace market [4]. Group 3: Competitive Landscape - Honeywell International Inc. (HON) reported organic sales growth of 10%, 13%, and 10% in its defense and space business for the first three quarters of 2025, driven by stable defense spending [5]. - Parker-Hannifin Corp.'s Aerospace Systems segment saw a 13.3% year-over-year revenue increase in Q1 of fiscal 2026, benefiting from strong demand in both commercial and military markets [6]. Group 4: Valuation and Estimates - HWM is currently trading at a forward price-to-earnings ratio of 55.55X, which is above the industry average of 44.73X, indicating a relatively high valuation [9]. - The Zacks Consensus Estimate for HWM's 2025 earnings has increased by 2.8% over the past 60 days, reflecting positive market sentiment [10].

Core Insights - Howmet Aerospace Inc. (HWM) has acquired Consolidated Aerospace Manufacturing LLC (CAM) for approximately $1.8 billion, a strategic move to enhance its long-term growth strategy [1][8]. Group 1: Acquisition Details - CAM specializes in producing aerospace components such as fluid fittings and precision fasteners, which aligns with Howmet's strategy to bolster its market share and customer base [2]. - The acquisition is expected to close in the first half of 2026, subject to customary closing conditions, with CAM projected to generate revenues of $485-$495 million in 2026 and maintain an adjusted EBITDA margin above 20% [3][4]. Group 2: Strategic Benefits - By acquiring CAM, Howmet gains access to established brands, skilled engineering teams, and strong customer relationships, allowing for a broader range of products and services in the aerospace and defense sectors [4]. - The acquisition positions Howmet to enhance its fastening systems portfolio, capitalizing on robust global aircraft production and defense spending [4]. Group 3: Market Performance - Howmet's shares have increased by 90.7% over the past year, significantly outperforming the industry growth of 31.7% [7]. - The company is currently trading at a forward price-to-earnings ratio of 48.17X, which is above the industry average of 30.43X, indicating a premium valuation [10].