Howmet Aerospace (NYSE:HWM) Posts Strong Earnings With US$1,891M Sales

Ladies and gentlemen, buckle up! We're diving into the stratosphere of the aerospace industry to explore the meteoric rise of Howmet Aerospace Inc (HWM) in 2025. This stock is ON FIRE, and you need to know why!

Howmet Aerospace recently declared a regular cash dividend and reported strong fourth-quarter earnings, with sales rising to $1,891 million and net income increasing to $314 million. Despite these positive developments, the company's stock price remained flat over the last quarter. During this period, the broader market faced significant turmoil, including a 9.5% drop in major indexes due to global trade tensions and tariff announcements. Howmet's completed share buyback program may have been overshadowed by these broader economic pressures, which likely influenced investor behavior and kept share prices steady despite the company’s solid financial performance.



Over the past five years, Howmet Aerospace's total shareholder returns surged to a very large percentage, highlighting its impressive long-term growth. This dramatic increase in value reflects several key factors, including strategic investments and operational improvements. The company's proactive share repurchase program, which saw over 28 million shares repurchased for US$1.35 billion since August 2021, played a substantial role in this growth by enhancing shareholder value through reduced share count and increased earnings per share.

Further supporting this stellar performance was the company's robust expansion in the aerospace and engine spares segments. In 2024, Engine Spares revenue grew around 25%, significantly bolstering Howmet's top line. Additionally, strategic investments in industrial gas turbine capacity have opened new avenues for revenue growth. Howmet Aerospace's return also outpaced both the broader market and the US Aerospace & Defense industry over the past year, reinforcing its strong position in the sector.

The Rocket Fuel Behind HWM's Surge

1. Aerospace and Automotive Recovery: The aerospace and automotive sectors are back with a vengeance, and Howmet Aerospace is riding the wave. The rebound in air freight demand and overall economic recovery have created a perfect storm for revenue growth. Howmet's total operating revenue soared by 9.25% year-over-year, hitting $1.891 billion as of December 31, 2024. That's a BOOM in sales, folks!

2. Market Dominance: Howmet Aerospace is the king of the Miscellaneous Fabricated Products Industry, holding an 85.78% market share as of Q4 2024. That's a commanding lead over its competitors, including Innovate Corp, which trails at 14.22%. Within the Basic Materials Sector, Howmet maintains a 37.78% market share, outpacing Alcoa Corp and Innovate Corp. This dominance is a testament to Howmet's technological innovation, customer service, and market expansion strategies.

3. Financial Performance: Howmet's financials are as solid as a titanium alloy. The company's EPS for Q4 2024 was $0.32, and while it saw a slight quarter-over-quarter decline, earnings grew by 51.1% over the past year. The gross profit margin stood at 22%, with operating and net profit margins at 11% and 5%, respectively. Howmet's free cash flow of $200 million showcases its strong liquidity position. This is a company that knows how to make money and keep it!

The Future is Bright for HWM

Analysts are bullish on Howmet Aerospace, forecasting earnings growth of 15.36% per year. The company's strong market positioning and diverse product portfolio are expected to drive long-term growth. The 12-month stock price forecast is $124.19, which is a slight decrease from the current price of $129.69. But don't let that fool you—this stock is a value investment opportunity waiting to happen.

Why You Need to Own HWM

1. Growth, Growth, Growth!: Howmet Aerospace is positioned for durable growth in commercial aerospace and industrial gas turbines. The company saw a 13% increase in sales in Q4 2024, driven by robust demand in commercial aerospace and defense segments. This is a growth story you don't want to miss!

2. Strong Financials: Howmet's financial performance is rock-solid. The company's revenue growth, earnings, and profit margins are all on the rise. This is a company that knows how to make money and keep it!

3. Market Dominance: Howmet Aerospace is the king of the Miscellaneous Fabricated Products Industry. The company's market share and competitive advantages make it a no-brainer for investors.

Don't Miss Out on This Opportunity

Howmet Aerospace Inc (HWM) is surging in 2025, and you need to be a part of it. This stock is a growth machine, and it's poised for long-term success. Don't let this opportunity slip away—BUY NOW and watch your portfolio take off!