Core Viewpoint - Howmet (HWM) reported quarterly earnings of $0.86 per share, exceeding the Zacks Consensus Estimate of $0.77 per share, and showing an increase from $0.57 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was 11.69%, with the company having surpassed consensus EPS estimates in all four of the last quarters [2] - Howmet's revenues for the quarter reached $1.94 billion, surpassing the Zacks Consensus Estimate by 0.47%, and up from $1.82 billion year-over-year [3] - The company has also exceeded consensus revenue estimates three times in the last four quarters [3] Stock Performance - Howmet shares have increased approximately 26.7% since the beginning of the year, contrasting with a decline of -5.3% in the S&P 500 [4] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [4] Future Outlook - Current consensus EPS estimate for the upcoming quarter is $0.80 on revenues of $1.99 billion, and for the current fiscal year, it is $3.25 on revenues of $8.02 billion [8] - The estimate revisions trend for Howmet is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [7] Industry Context - The Aerospace - Defense industry, to which Howmet belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting potential challenges ahead [9] - The performance of Howmet's stock may be influenced by the overall outlook for the industry [9]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Howmet Aerospace reported record first quarter 2025 results, exceeding guidance with strong growth, strategic capital deployment, and an upgraded credit rating [First Quarter 2025 Performance Overview](index=1&type=section&id=First%20Quarter%202025%20Performance%20Overview) Howmet Aerospace reported record first quarter 2025 results, exceeding baseline guidance with significant year-over-year growth in revenue, profit, and adjusted metrics, primarily driven by strong performance in the commercial aerospace market Q1 2025 Performance Overview | Metric | Q1 2025 (GAAP) | Q1 2024 (GAAP) | YoY Change | Q1 2025 (Adj. Excl. Special Items) | Q1 2024 (Adj. Excl. Special Items) | YoY Change | | :-------------------------------- | :------------- | :------------- | :--------- | :--------------------------------- | :--------------------------------- | :--------- | | Revenue | $1.94B | $1.824B | +6% | - | - | - | | Operating Income | $494M | $369M | +34% | $491M | $369M | +33% | | Operating Income Margin | 25.4% | 20.2% | +520 bps | 25.3% | 20.3% | +500 bps | | Net Income | $344M | $243M | +42% | $351M | $238M | +47% | | Earnings per Share (Diluted) | $0.84 | $0.59 | +42% | $0.86 | $0.57 | +51% | | Adjusted EBITDA | - | - | - | $560M | $437M | +28% | | Adjusted EBITDA Margin | - | - | - | 28.8% | 24.0% | +480 bps | | Cash from Operations | $253M | $177M | +43% | - | - | - | | Free Cash Flow | $134M | $95M | +41% | - | - | - | - Record first quarter 2025 revenue of **$1.94 billion**, up **6% year over year**, primarily driven by **9% growth in the commercial aerospace market**[4](index=4&type=chunk) - Adjusted EBITDA excluding special items reached a record **$560 million**, up **28% year over year**, with margin increasing by **480 basis points to 28.8%**[7](index=7&type=chunk)[8](index=8&type=chunk) [Key Corporate Actions & Outlook](index=2&type=section&id=Key%20Corporate%20Actions%20%26%20Outlook) The company deployed significant capital through share repurchases and increased dividends, while receiving a credit rating upgrade. The outlook remains positive for commercial and defense aerospace, with some uncertainty in commercial transportation due to tariffs - Repurchased **$125 million** of common stock in Q1 2025 and an additional **$100 million** in April 2025[3](index=3&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk) - Paid a quarterly common stock dividend of **$0.10 per share** in Q1 2025, a **100% increase** from Q1 2024[3](index=3&type=chunk)[8](index=8&type=chunk)[9](index=9&type=chunk) - Fitch Ratings upgraded Howmet Aerospace's Long-Term Issuer Default Rating from **BBB to BBB+** on March 31, 2025, three notches into Investment Grade[8](index=8&type=chunk)[9](index=9&type=chunk) - Commercial aerospace market is poised for continued growth with record backlogs, and healthy growth is expected in defense aerospace and industrial gas turbine markets. Commercial transportation faces uncertainty due to tariffs[10](index=10&type=chunk) [2025 Financial Guidance](index=1&type=section&id=2025%20Financial%20Guidance) Howmet Aerospace updated its full-year 2025 guidance, widening the revenue range and increasing projections for Adjusted EBITDA, Adjusted EPS, and Free Cash Flow, while also providing Q2 2025 guidance 2025 Financial Guidance | Metric | Q2 2025 Low | Q2 2025 Baseline | Q2 2025 High | FY 2025 Low | FY 2025 Baseline | FY 2025 High | | :------------------ | :---------- | :--------------- | :----------- | :---------- | :--------------- | :----------- | | Revenue | $1.980B | $1.990B | $2.000B | $7.880B | $8.030B | $8.180B | | Adj. EBITDA | $555M | $560M | $565M | $2.225B | $2.250B | $2.275B | | Adj. EBITDA Margin | 28.0% | 28.1% | 28.3% | 28.2% | 28.0% | 27.8% | | Adj. Earnings per Share | $0.85 | $0.86 | $0.87 | $3.36 | $3.40 | $3.44 | | Free Cash Flow | - | - | - | $1.100B | $1.150B | $1.200B | - Full Year 2025 Guidance: Revenue range widened, with increases to Adjusted EBITDA, Adjusted EPS, and Free Cash Flow, including current assumptions of tariff impacts[2](index=2&type=chunk)[9](index=9&type=chunk)[10](index=10&type=chunk) [First Quarter 2025 Financial Results](index=2&type=section&id=First%20Quarter%202025%20Financial%20Results) This section details Howmet Aerospace's consolidated and segment-specific financial performance for Q1 2025, driven by strong aerospace market growth [Consolidated Financial Performance (GAAP & Adjusted)](index=2&type=section&id=Consolidated%20Financial%20Performance%20%28GAAP%20%26%20Adjusted%29) Howmet Aerospace achieved record consolidated financial performance in Q1 2025, with significant year-over-year increases across key GAAP and adjusted metrics, driven by strong market growth and operational efficiency Q1 2025 Consolidated Financial Performance | Metric | Q1 2025 (GAAP) | Q1 2024 (GAAP) | YoY Change | Q1 2025 (Adj. Excl. Special Items) | Q1 2024 (Adj. Excl. Special Items) | YoY Change | | :-------------------------------- | :------------- | :------------- | :--------- | :--------------------------------- | :--------------------------------- | :--------- | | Revenue | $1.94B | $1.824B | +6% | - | - | - | | Operating Income | $494M | $369M | +34% | $491M | $369M | +33% | | Operating Income Margin | 25.4% | 20.2% | +520 bps | 25.3% | 20.3% | +500 bps | | Net Income | $344M | $243M | +42% | $351M | $238M | +47% | | Earnings per Share (Diluted) | $0.84 | $0.59 | +42% | $0.86 | $0.57 | +51% | | Adjusted EBITDA | - | - | - | $560M | $437M | +28% | | Adjusted EBITDA Margin | - | - | - | 28.8% | 24.0% | +480 bps | - Operating Income Margin increased by approximately **520 basis points year over year to 25.4%**, with Adjusted Operating Income Margin up **500 basis points to 25.3%**[6](index=6&type=chunk) - Adjusted EBITDA growth was driven by strong performance in commercial and defense aerospace markets, partially offset by declines in commercial transportation[7](index=7&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) Segment performance in Q1 2025 showed strong growth in Engine Products, Fastening Systems, and Engineered Structures, primarily driven by aerospace markets, while Forged Wheels experienced a decline due to lower commercial transportation volumes [Engine Products](index=3&type=section&id=Engine%20Products) The Engine Products segment experienced significant growth in sales and Adjusted EBITDA, driven by strong demand across commercial and defense aerospace, industrial gas turbine, and oil and gas markets Engine Products Q1 2025 Performance | Metric | 1Q24 | 1Q25 | YoY Change | | :-------------------------- | :--- | :--- | :--------- | | Third-party sales | $885M | $996M | +13% | | Segment Adjusted EBITDA | $249M | $325M | +31% | | Segment Adjusted EBITDA Margin | 28.1% | 32.6% | +450 bps | | Capital expenditures | $55M | $86M | +56% | - Growth driven by commercial aerospace, defense aerospace, industrial gas turbine, and oil and gas markets. The segment absorbed approximately **500 net headcount** in support of expected revenue increases[11](index=11&type=chunk) [Fastening Systems](index=3&type=section&id=Fastening%20Systems) The Fastening Systems segment reported increased revenue and Adjusted EBITDA, primarily due to growth in the commercial aerospace market and productivity gains, despite some offset from commercial transportation declines Fastening Systems Q1 2025 Performance | Metric | 1Q24 | 1Q25 | YoY Change | | :-------------------------- | :--- | :--- | :--------- | | Third-party sales | $389M | $412M | +6% | | Segment Adjusted EBITDA | $92M | $127M | +38% | | Segment Adjusted EBITDA Margin | 23.7% | 30.8% | +710 bps | | Capital expenditures | $7M | $10M | +43% | - Revenue and EBITDA growth driven by the commercial aerospace market and productivity gains, partially offset by declines in the commercial transportation market[13](index=13&type=chunk) [Engineered Structures](index=4&type=section&id=Engineered%20Structures) The Engineered Structures segment achieved notable revenue and Adjusted EBITDA growth, primarily propelled by strong performance in the defense aerospace market and operational productivity improvements Engineered Structures Q1 2025 Performance | Metric | 1Q24 | 1Q25 | YoY Change | | :-------------------------- | :--- | :--- | :--------- | | Third-party sales | $262M | $282M | +8% | | Segment Adjusted EBITDA | $37M | $60M | +62% | | Segment Adjusted EBITDA Margin | 14.1% | 21.3% | +720 bps | | Capital expenditures | $6M | $5M | -17% | - Revenue and EBITDA growth driven by the defense aerospace market and productivity gains[14](index=14&type=chunk) [Forged Wheels](index=4&type=section&id=Forged%20Wheels) The Forged Wheels segment experienced a decline in revenue and Adjusted EBITDA due to lower volumes in the commercial transportation market, partially mitigated by cost pass-throughs Forged Wheels Q1 2025 Performance | Metric | 1Q24 | 1Q25 | YoY Change | | :-------------------------- | :--- | :--- | :--------- | | Third-party sales | $288M | $252M | -13% | | Segment Adjusted EBITDA | $82M | $68M | -17% | | Segment Adjusted EBITDA Margin | 28.5% | 27.0% | -150 bps | | Capital expenditures | $12M | $15M | +25% | - Revenue and EBITDA decreased due to lower volumes in the commercial transportation market, partially offset by aluminum and other inflationary cost pass-through[15](index=15&type=chunk) [Corporate & Financial Updates](index=4&type=section&id=Corporate%20%26%20Financial%20Updates) This section outlines Howmet Aerospace's strategic financial activities, including share repurchases, dividend increases, and a significant credit rating upgrade [Share Repurchase Program](index=4&type=section&id=Share%20Repurchase%20Program) Howmet Aerospace actively repurchased common stock in Q1 2025 and April 2025, demonstrating a commitment to returning capital to shareholders and reducing share count - Repurchased **$125 million** of common stock in Q1 2025 at an average price of **$124.24 per share**, retiring approximately **1.0 million shares**[3](index=3&type=chunk)[9](index=9&type=chunk)[16](index=16&type=chunk) - Repurchased an additional **$100 million** of common stock in April 2025 at an average price of **$125.61 per share**, retiring approximately **0.8 million shares**[8](index=8&type=chunk)[9](index=9&type=chunk)[16](index=16&type=chunk) - As of April 30, 2025, total share repurchase authorization available was **$1.972 billion**[16](index=16&type=chunk) [Common Stock Dividend](index=4&type=section&id=Common%20Stock%20Dividend) The company significantly increased its quarterly common stock dividend, reflecting strong financial performance and a commitment to shareholder returns - Paid a quarterly dividend of **$0.10 per share** on common stock in Q1 2025, a **100% increase** from the **$0.05 per share** dividend paid in Q1 2024[3](index=3&type=chunk)[9](index=9&type=chunk)[17](index=17&type=chunk) - The Board of Directors announced a quarterly dividend of **$0.10 per share** to be paid on May 27, 2025[17](index=17&type=chunk) [Credit Rating Upgrade](index=5&type=section&id=Credit%20Rating%20Upgrade) Fitch Ratings upgraded Howmet Aerospace's long-term credit rating, recognizing the company's strengthening balance sheet and financial stability - On March 31, 2025, Fitch Ratings upgraded Howmet Aerospace's Long-Term Issuer Default Rating from **BBB to BBB+**, placing it three notches into Investment Grade[8](index=8&type=chunk)[9](index=9&type=chunk)[18](index=18&type=chunk) [Company Information & Disclaimers](index=5&type=section&id=Company%20Information%20%26%20Disclaimers) This section provides an overview of Howmet Aerospace's business, along with standard disclaimers regarding forward-looking statements and non-GAAP financial measures [About Howmet Aerospace](index=5&type=section&id=About%20Howmet%20Aerospace) Howmet Aerospace is a global leader in advanced engineered solutions for the aerospace and transportation industries, focusing on critical components for jet engines, aerospace fastening systems, airframe structures, and forged aluminum wheels - Headquartered in Pittsburgh, Pennsylvania, Howmet Aerospace provides advanced engineered solutions for aerospace and transportation[21](index=21&type=chunk) - Primary businesses include jet engine components, aerospace fastening systems, airframe structural components, and forged aluminum wheels for commercial transportation[21](index=21&type=chunk) - The company holds approximately **1,170 granted and pending patents**, enabling lighter, more fuel-efficient aircraft and commercial trucks[21](index=21&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section contains standard forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from projections, including economic conditions, market changes, supply chain disruptions, and geopolitical risks - Statements relate to future events and expectations, constituting forward-looking statements under the Private Securities Litigation Reform Act of 1995[23](index=23&type=chunk) - Subject to risks and uncertainties such as global economic deterioration, cyber attacks, loss of significant customers, manufacturing difficulties, supply chain disruptions, workforce issues, competition, geopolitical risks, and legal contingencies[23](index=23&type=chunk) - The company disclaims any obligation to publicly update forward-looking statements, except as required by applicable law[23](index=23&type=chunk) [Non-GAAP Financial Measures](index=7&type=section&id=Non-GAAP%20Financial%20Measures) The report includes non-GAAP financial measures to supplement GAAP disclosures, providing additional insights into operating performance and financial obligations, with reconciliations provided in the schedules - Certain data are considered 'non-GAAP financial measures' under SEC rules, supplementing GAAP disclosures and not considered an alternative to GAAP measures[24](index=24&type=chunk) - Reconciliations to the most directly comparable GAAP financial measures and management's rationale for their use are provided in the schedules[24](index=24&type=chunk) [Unaudited Financial Statements](index=8&type=section&id=Unaudited%20Financial%20Statements) This section presents Howmet Aerospace's unaudited consolidated financial statements for Q1 2025, including the Statement of Operations, Balance Sheet, and Cash Flows [Statement of Consolidated Operations](index=8&type=section&id=Statement%20of%20Consolidated%20Operations) The unaudited Statement of Consolidated Operations details Howmet Aerospace's financial performance for the first quarter ended March 31, 2025, showing significant increases in sales, operating income, and net income compared to prior periods Statement of Consolidated Operations (Q1 2025 vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :------------------------------------ | :------ | :------ | | Sales | $1,942M | $1,824M | | Operating income | $494M | $369M | | Net income | $344M | $243M | | Earnings per share - diluted | $0.84 | $0.59 | [Consolidated Balance Sheet](index=9&type=section&id=Consolidated%20Balance%20Sheet) The unaudited Consolidated Balance Sheet as of March 31, 2025, shows the company's financial position, with an increase in total assets and total equity compared to December 31, 2024 Consolidated Balance Sheet (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Total current assets | $3,554M | $3,362M | | Total assets | $10,772M | $10,519M | | Total current liabilities | $1,548M | $1,549M | | Total liabilities | $5,980M | $5,965M | | Total equity | $4,792M | $4,554M | [Statement of Consolidated Cash Flows](index=10&type=section&id=Statement%20of%20Consolidated%20Cash%20Flows) The unaudited Statement of Consolidated Cash Flows for Q1 2025 indicates strong cash generation from operations, which was partially used for financing and investing activities, resulting in a net decrease in cash and cash equivalents Statement of Consolidated Cash Flows (Q1 2025 vs. Q1 2024) | Activity | Q1 2025 | Q1 2024 | | :------------------------------------ | :------ | :------ | | Cash provided from operations | $253M | $177M | | Cash used for financing activities | $(167)M | $(178)M | | Cash used for investing activities | $(115)M | $(75)M | | Net change in cash, cash equivalents and restricted cash | $(28)M | $(76)M | | Cash, cash equivalents and restricted cash at end of period | $537M | $534M | [Reconciliation of Non-GAAP Financial Measures](index=11&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of various non-GAAP financial measures to their most directly comparable GAAP counterparts [Total Segment Adjusted EBITDA Reconciliation](index=11&type=section&id=Total%20Segment%20Adjusted%20EBITDA%20Reconciliation) This section provides the reconciliation of Total Segment Adjusted EBITDA to Consolidated Income Before Income Taxes, highlighting the adjustments made for depreciation, amortization, restructuring, and corporate expenses to present a non-GAAP measure of operating performance Total Segment Adjusted EBITDA Reconciliation (Q1 2025 vs. Q1 2024) | Metric | 1Q25 | 1Q24 | | :------------------------------------ | :----- | :----- | | Income before income taxes | $446M | $303M | | Operating income | $494M | $369M | | Segment provision for depreciation and amortization | $68M | $65M | | Restructuring and other charges (credits) | $(4)M | $0M | | Corporate expense | $22M | $26M | | Total Segment Adjusted EBITDA | $580M | $460M | - Total Segment Adjusted EBITDA is a non-GAAP measure used by management to assess operating performance and ability to meet financial obligations, excluding special items[32](index=32&type=chunk) [Free Cash Flow Reconciliation](index=13&type=section&id=Free%20Cash%20Flow%20Reconciliation) This reconciliation details the calculation of Free Cash Flow, a non-GAAP measure, by subtracting capital expenditures from cash provided by operations, indicating the cash available after maintaining and expanding the asset base Free Cash Flow Reconciliation (Q1 2025 vs. Q1 2024) | Metric | 1Q25 | 1Q24 | | :-------------------------- | :----- | :----- | | Cash provided from operations | $253M | $177M | | Capital expenditures | $(119)M | $(82)M | | Free cash flow | $134M | $95M | - Free cash flow increased by **$39 million year-over-year**, from **$95 million in Q1 2024 to $134 million in Q1 2025**[34](index=34&type=chunk) - Free cash flow does not represent residual cash flow for discretionary expenditures as mandatory debt service is not deducted[35](index=35&type=chunk) [Net Income and EPS Excluding Special Items Reconciliation](index=14&type=section&id=Net%20Income%20and%20EPS%20Excluding%20Special%20Items%20Reconciliation) This reconciliation adjusts GAAP Net Income and Diluted EPS by excluding the impact of special items, such as restructuring credits, plant fire reimbursements, and discrete tax items, to provide a clearer view of underlying operating performance Net Income and EPS Excluding Special Items Reconciliation (Q1 2025 vs. Q1 2024) | Metric | 1Q25 | 1Q24 | | :------------------------------------ | :----- | :----- | | Net income | $344M | $243M | | Diluted earnings per share ("EPS") | $0.84 | $0.59 | | Total: After-tax special items | $7M | $(5)M | | Net income excluding Special items | $351M | $238M | | Diluted EPS excluding Special items | $0.86 | $0.57 | - Special items in Q1 2025 included restructuring and other credits (**$(4) million**), costs associated with closures, supply chain disruptions, and other items (**$1 million**), and discrete and other tax special items (**$9 million**)[36](index=36&type=chunk)[37](index=37&type=chunk) [Operational Tax Rate Reconciliation](index=15&type=section&id=Operational%20Tax%20Rate%20Reconciliation) This reconciliation presents the operational tax rate by adjusting the GAAP effective tax rate for the impact of special items, offering a more normalized view of the company's tax burden on its core operations Operational Tax Rate Reconciliation (Q1 2025) | Metric | Effective tax rate, as reported | Special items | Operational tax rate, as adjusted | | :-------------------------- | :------------------------------ | :------------ | :-------------------------------- | | Income before income taxes | $446M | $(3)M | $443M | | Provision for income taxes | $102M | $(10)M | $92M | | Tax rate | 22.9% | - | 20.8% | - Pre-tax special items for Q1 2025 included restructuring and other credits (**$(4) million**), partially offset by costs associated with closures, supply chain disruptions, and other items (**$1 million**)[39](index=39&type=chunk) - Discrete tax items for Q1 2025 included a net charge related to the expiration of a tax holiday in China (**$6 million**), a charge for a tax reserve established in Germany (**$2 million**), and a net charge for other small items (**$1 million**)[40](index=40&type=chunk) [Adjusted EBITDA and Margin Reconciliation](index=16&type=section&id=Adjusted%20EBITDA%20and%20Margin%20Reconciliation) This reconciliation provides Adjusted EBITDA and Adjusted EBITDA margin by adding back income taxes, interest, other expenses, restructuring credits, and depreciation/amortization to net income, and further adjusting for special items, to show core operational profitability Adjusted EBITDA and Margin Reconciliation (Q1 2025 vs. Q1 2024) | Metric | 1Q25 | 1Q24 | | :------------------------------------ | :----- | :----- | | Sales | $1,942M | $1,824M | | Operating income | $494M | $369M | | Adjusted EBITDA | $559M | $436M | | Adjusted EBITDA excluding Special items | $560M | $437M | | Adjusted EBITDA margin excluding Special items | 28.8% | 24.0% | | Incremental operating income margin | 106% | - | | Incremental margin | 104% | - | - Adjusted EBITDA excluding Special items increased by **$123 million year-over-year**, from **$437 million in Q1 2024 to $560 million in Q1 2025**[41](index=41&type=chunk) - The incremental operating income margin was **106%**, and the incremental margin (Adjusted EBITDA excluding Special items) was **104% year-over-year**[41](index=41&type=chunk) [Adjusted Operating Income and Margin Reconciliation](index=17&type=section&id=Adjusted%20Operating%20Income%20and%20Margin%20Reconciliation) This reconciliation adjusts GAAP Operating Income and Operating Income Margin by excluding special items, such as restructuring credits and costs associated with disruptions, to provide a clearer perspective on the company's core operational profitability Adjusted Operating Income and Margin Reconciliation (Q1 2025 vs. Q1 2024) | Metric | 1Q25 | 1Q24 | | :------------------------------------ | :----- | :----- | | Sales | $1,942M | $1,824M | | Operating income | $494M | $369M | | Operating income margin | 25.4% | 20.2% | | Adjusted operating income excluding Special items | $491M | $370M | | Adjusted operating income margin excluding Special items | 25.3% | 20.3% | - Adjusted operating income excluding Special items increased by **$121 million year-over-year**, from **$370 million in Q1 2024 to $491 million in Q1 2025**[42](index=42&type=chunk) - Adjusted operating income margin excluding Special items improved by **500 basis points year-over-year**, reaching **25.3% in Q1 2025**[42](index=42&type=chunk)

Analysts on Wall Street project that Howmet (HWM) will announce quarterly earnings of $0.77 per share in its forthcoming report, representing an increase of 35.1% year over year. Revenues are projected to reach $1.93 billion, increasing 6% from the same quarter last year. Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.5% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Ah ...

Core Viewpoint - Howmet Aerospace Inc. is set to release its first-quarter 2025 results, with earnings expected to show a significant year-over-year increase, despite facing challenges in the commercial transportation market and supply chain disruptions [1][4][5]. Financial Performance - The Zacks Consensus Estimate for earnings is 77 cents per share, reflecting a 35.1% increase from the previous year, while revenues are projected at $1.93 billion, indicating a 6% year-over-year growth [1]. - Earnings estimates have remained stable over the past 60 days, with the current quarter's estimate unchanged at 77 cents per share [2]. Earnings Surprise History - Howmet has a strong earnings surprise history, exceeding the Zacks Consensus Estimate in the last four quarters with an average surprise of 8.3% [2]. Market Conditions - The company is experiencing weakness in the commercial transportation market, particularly in the Forged Wheels segment, due to lower OEM builds [4]. - Production issues at Boeing are expected to negatively impact Howmet's sales, particularly in narrow-body and wide-body aircraft [4]. Supply Chain and Cost Challenges - Howmet has faced supply chain disruptions in the aerospace sector, leading to delays and increased costs, which are likely to affect its performance [5]. - High operating costs, labor shortages, and increased raw material costs are anticipated to hurt the company's bottom line in the upcoming quarter [6]. Positive Market Trends - Despite challenges, Howmet is witnessing strong demand in the commercial aerospace market, driven by increased air travel and OEM spending [7]. - The recovery of the Boeing 737 MAX production is expected to positively influence demand for Howmet's products [8]. - The defense business is also performing well, with robust orders for engine spares for the F-35 program contributing to top-line growth [8]. Stock Performance - Howmet's shares have increased by 9.4% over the past three months, outperforming the Zacks Aerospace - Defense industry, which declined by 4.3% [9]. Valuation Concerns - The company is trading at a forward P/E ratio of 38.62X, significantly higher than the industry average of 23.42X, which may pose risks if market sentiment declines [11]. Long-term Outlook - Howmet's diversified portfolio and strength in the commercial aerospace market suggest promising long-term growth potential [14].

Core Viewpoint - The article highlights the strong performance of Howmet Aerospace Inc. (NYSE: HWM.PR) with a reported return of 11.2% and a total return of 12.6% since the last analysis, indicating a positive investment opportunity in the aerospace sector [1]. Group 1: Company Performance - Howmet Aerospace Inc. has shown a strong buy rating, which has resulted in significant returns for investors [1]. - The company is part of a broader analysis focused on the aerospace, defense, and airline industries, which are expected to have substantial growth prospects [1]. Group 2: Analyst Insights - The analysis is conducted by an experienced analyst with a background in aerospace engineering, providing informed insights into the complexities of the industry [1]. - The investing group offers access to data analytics monitors, enhancing the investment decision-making process [1].

Company Performance - Howmet Aerospace Inc. (HWM) shares have surged 96.1% in the past year, significantly outperforming the industry and the S&P 500, which returned 4.9% and 8.1%, respectively [1] - The stock closed at $124.47, trading below its 52-week high of $140.55 but above its 52-week low of $62.80, indicating solid upward momentum and price stability [3] Market Drivers - The commercial aerospace market is the strongest driver of Howmet's business, with air travel demand continuing to rise through 2024, particularly for wide-body aircraft [5][8] - Revenues from the commercial aerospace market increased 12.9% year over year in Q4 2024, constituting 53% of Howmet's business, driven by demand for new, fuel-efficient aircraft [9] - The defense business is also experiencing positive momentum, with revenues increasing 22% year over year in Q4, making up 16% of the company's business [10] Financial Outlook - Howmet expects to generate revenues in the range of $7.93-$8.13 billion in 2025, indicating year-over-year growth of 8% at the midpoint [12] - The Zacks Consensus Estimate for Howmet's 2025 earnings has increased 1.6% to $3.25 per share, reflecting a year-over-year growth of 20.8% [16] Shareholder Returns - Howmet is committed to rewarding shareholders, having paid dividends worth $109 million and repurchased shares for $500 million in 2024 [13] - In January 2025, the company increased its dividend by 25% to 10 cents per share, and in July 2024, it approved an increase in the share repurchase program by $2 billion [13] Competitive Landscape - Howmet operates in a highly competitive aerospace and defense market, with peers like GE Aerospace and Textron also being significant players [15] - The company faces near-term concerns due to weakness in the commercial transportation market and production issues at Boeing [14]

For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Howmet (HWM) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.Howmet is a member of our Aerospace group, which includes 53 different companies and currently sits at #3 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks with ...

Core Insights - Recent economic uncertainty has slowed demand for new airplanes, but a midday tariff reprieve has positively impacted the stocks of commercial aerospace suppliers, with Boeing, Howmet Aerospace, GE Aerospace, and RTX seeing significant gains [1] - Boeing has faced challenges over the past five years due to engineering mishaps and regulatory scrutiny, affecting its delivery capabilities and supply chain [2] - Signs of recovery are emerging for Boeing, with 130 airplane deliveries in Q1, including 41 in March, compared to 83 in the same quarter last year and 29 in March 2024, alongside a backlog of 4,277 future orders [3] Industry Analysis - The aerospace industry is cyclical, and while airlines are cautious, they are not deferring orders significantly despite the current economic environment [4] - U.S. tariff policy remains a significant uncertainty, with potential impacts on consumer health and travel demand, which could influence airlines' order decisions [5] - For long-term investors, suppliers like Howmet, GE Aerospace, and RTX are seen as attractive candidates, while Boeing's recovery is expected to take years [6]

Defense and aerospace stocks have had a fairly strong first quarter of 2025. As of March 31, the benchmark iShares U.S. Aerospace & Defense ETF BATS: ITA has climbed 17% in the last year and nearly 6% year-to-date (YTD), beating the S&P 500 over both timeframes given the recent correction. But some individual names within the industry have outshone the benchmark, leading the way amid speculation that the Trump administration will lead to favorable regulatory and spending trends for defense. Howmet Aerospace ...

Howmet (HWM) closed at $132.43 in the latest trading session, marking a -1.27% move from the prior day. This change lagged the S&P 500's daily loss of 0.33%. Meanwhile, the Dow experienced a drop of 0.37%, and the technology-dominated Nasdaq saw a decrease of 0.53%.Shares of the maker of engineered products for the aerospace and other industries witnessed a gain of 1.64% over the previous month, trailing the performance of the Aerospace sector with its gain of 4.54% and outperforming the S&P 500's loss of 4 ...