Howmet Aerospace (NYSE:HWM) Releases Quarterly Earnings Results, Beats Expectations By $0.08 EPS

Howmet Aerospace (NYSE:HWM) announced its quarterly earnings results on Thursday. The company reported $1.05 EPS for the quarter, beating analysts’ consensus estimates of $0.97 by $0.08, FiscalAI reports. Howmet Aerospace had a net margin of 18.18% and a return on equity of 29.21%. The business had revenue of $2.17 billion during the quarter, compared to analyst estimates of $2.12 billion. Howmet Aerospace’s quarterly revenue was up 14.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.77 EPS. Howmet Aerospace updated its Q1 2026 guidance to 1.090-1.110 EPS and its FY 2026 guidance to 4.350-4.550 EPS.

Here are the key takeaways from Howmet Aerospace’s conference call:

• Howmet reported a strong Q4 and full‑year 2025 with Q4 revenue $2.17B (+15%), full‑year revenue +11%, Q4 EBITDA $653M (+29%) and record full‑year EBITDA of $2.42B, while free cash flow was a record $1.43B with 93% conversion of net income.
• Demand tailwinds across core markets — commercial aerospace, defense, and gas turbines — drove spares growth (spares up ~33% to $1.7B, now 21% of revenue) and strong gas turbine growth (Q4 +32%, FY +25%), supporting durable revenue upside.
• Company is investing heavily for growth — record 2025 CapEx of $453M (2026 midpoint ~ $470M), ~1,500 net new hires, multiple new/expanded plants and automation — which should boost long‑term capacity but may create short‑term startup friction and margin pressure.
• Capital allocation remains shareholder‑friendly and conservative: ~$1.2B deployed in 2025 (including ~$700M buybacks), debt reduced ~$265M to net leverage ~1x, cash balance $743M and ~ $1.35B share‑repurchase authorization remaining, preserving flexibility.
• Strategic M&A underway — acquired Bruner (bolts/long‑length capability) and agreed to buy CAM for <$strong> $1.8B to broaden fasteners/fittings exposure; transactions expand addressable market but carry integration and regulatory timing risk and the 2026 guide excludes CAM.

Howmet Aerospace Price Performance

NYSE:HWM traded up $14.48 during trading hours on Thursday, hitting $245.33. 3,389,428 shares of the company’s stock traded hands, compared to its average volume of 2,829,402. The business’s fifty day simple moving average is $210.36 and its two-hundred day simple moving average is $197.17. Howmet Aerospace has a 52 week low of $105.04 and a 52 week high of $256.70. The firm has a market cap of $98.64 billion, a P/E ratio of 68.92, a P/E/G ratio of 2.13 and a beta of 1.26. The company has a quick ratio of 1.14, a current ratio of 2.35 and a debt-to-equity ratio of 0.63.

Howmet Aerospace Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, February 25th. Investors of record on Friday, February 6th will be given a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date is Friday, February 6th. Howmet Aerospace’s dividend payout ratio (DPR) is 13.48%.

Hedge Funds Weigh In On Howmet Aerospace

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Newbridge Financial Services Group Inc. lifted its holdings in shares of Howmet Aerospace by 119.7% in the 2nd quarter. Newbridge Financial Services Group Inc. now owns 134 shares of the company’s stock worth $25,000 after acquiring an additional 73 shares during the last quarter. J.Safra Asset Management Corp bought a new position in shares of Howmet Aerospace in the 4th quarter worth about $30,000. Meeder Asset Management Inc. increased its stake in shares of Howmet Aerospace by 215.8% during the fourth quarter. Meeder Asset Management Inc. now owns 180 shares of the company’s stock valued at $37,000 after purchasing an additional 123 shares in the last quarter. Osterweis Capital Management Inc. purchased a new stake in shares of Howmet Aerospace in the second quarter worth $39,000. Finally, Rakuten Securities Inc. increased its position in shares of Howmet Aerospace by 151.1% during the second quarter. Rakuten Securities Inc. now owns 231 shares of the company’s stock valued at $43,000 after acquiring an additional 139 shares in the last quarter. 90.46% of the stock is currently owned by hedge funds and other institutional investors.

Key Howmet Aerospace News

Here are the key news stories impacting Howmet Aerospace this week:

• Positive Sentiment: Q4 beat on EPS and revenue, stronger margins and cash flow: Howmet reported $1.05 EPS vs. $0.97 consensus and revenue ahead of estimates, with higher adjusted margins and sizable operating cash flow—key fundamentals that support a higher stock multiple. Howmet Aerospace Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Management issued firm Q1 and FY2026 guidance above Street models: Q1 EPS 1.090–1.110 (consensus ~0.99) and FY EPS 4.350–4.550 with revenue guidance roughly $9.0–9.2B—guidance gives investors clear visibility into continued aerospace demand. Howmet’s Q4 Earnings & Revenues Surpass Estimates, Increase Y/Y
• Positive Sentiment: Operational strength tied to aerospace recovery: Reuters and company materials cite strong jet demand lifting castings/fasteners volumes, which underpins the above-guidance outlook and supports margin leverage. Howmet forecasts first-quarter profit above estimates on strong aerospace demand
• Positive Sentiment: Capital return and buybacks boost shareholder signal: FY2025 saw large buybacks ($700M) and ongoing repurchases in Q4, supporting EPS and investor confidence. Howmet Aerospace Reports Fourth Quarter and Full Year 2025 Results
• Neutral Sentiment: Earnings presentation and call available for deeper detail—useful for modeling but not a directional surprise beyond the release. Howmet Aerospace Inc. 2025 Q4 – Results – Earnings Call Presentation
• Neutral Sentiment: Broad market action (jobs/claims) is supportive of risk assets today, providing a friendly tape for industrial/aerospace names but not specific to Howmet. Continuing Claims Climb for a Second Week
• Negative Sentiment: Valuation scrutiny: some analysts/commentary flag a high P/E (50+ on certain metrics) and intrinsic value estimates below the current market price, which could cap upside if growth or margin assumptions slip. Howmet Aerospace: Earnings And Share Price Continue Skyward, 50+ P/E
• Negative Sentiment: Intrinsic-value takeaways: at least one valuation piece pegs fair value (~$231) below intraday trading levels, signaling potential downside risk for valuation-sensitive investors. Is Howmet Aerospace Inc. (NYSE:HWM) Worth US$231 Based On Its Intrinsic Value?

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on HWM shares. Sanford C. Bernstein reiterated an “outperform” rating and set a $247.00 price target on shares of Howmet Aerospace in a research note on Tuesday, January 6th. Weiss Ratings reissued a “buy (b)” rating on shares of Howmet Aerospace in a research report on Thursday, January 22nd. BTIG Research lifted their price target on Howmet Aerospace from $205.00 to $240.00 and gave the stock a “buy” rating in a report on Monday, November 3rd. iA Financial set a $240.00 price target on shares of Howmet Aerospace in a report on Monday, November 3rd. Finally, Wall Street Zen upgraded shares of Howmet Aerospace from a “hold” rating to a “buy” rating in a research note on Sunday, January 18th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, Howmet Aerospace has a consensus rating of “Moderate Buy” and an average target price of $224.53.

Howmet Aerospace Company Profile

Howmet Aerospace Inc is an industrial technology company that designs, manufactures and repairs engineered metal products for the aerospace, transportation and industrial markets. Its product portfolio includes precision castings and forgings, engineered fasteners, seamless rolled rings, and complex components for turbine engines, airframes and industrial gas turbines. The company also provides aftermarket services such as component repair, overhaul and parts distribution to support the operating fleet of commercial and military customers.

Howmet serves a global customer base of original equipment manufacturers (OEMs) and aftermarket operators, with manufacturing, service and distribution facilities across North America, Europe and Asia.