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Pittsburgh, Pennsylvania-based Howmet Aerospace Inc. (HWM) focuses on delivering advanced engineered solutions for the aerospace and transportation industries. The company, valued at a market cap of $51.4 billion, supplies components for jet engines, structural aerospace parts, and forged aluminum wheels, serving markets worldwide across defense, commercial aviation, and industrial applications.
Shares of HWM have significantly outperformed the broader market over the past 52 weeks. HWM has surged 119% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 20.9%. In 2025, shares of HWM are up 15.6%, compared to SPX’s 1.9% gain on a YTD basis.
Focusing more closely, Howmet Aerospace has also outpaced the SPDR S&P Aerospace & Defense ETF’s (XAR) 34.5% return over the past 52 weeks and a 5.5% YTD return.
Howmet Aerospace has outperformed the broader market over the past year, driven by strong demand for its aerospace components amid a recovery in commercial aircraft production and robust aftermarket growth. Diversified revenue streams, including contributions from the transportation and industrial sectors, have provided stability, while operational efficiencies and margin improvements have boosted profitability. Additionally, steady defense sector revenue further strengthens investor confidence, positioning the company for sustained growth.
The company released its third-quarter earnings on Nov. 6, and its shares jumped 12.1%. It reported strong financial results with a 10.7% year-over-year revenue growth, reaching $1.84 billion. The commercial aerospace sector was a major contributor, growing by 17%. Adjusted EBITDA, excluding special items, rose by 27% to $487 million, with a margin of 26.5%, highlighting strong operational performance. As a result, the company raised its full-year guidance for adjusted EBITDA and EPS, indicating continued growth despite broader industry challenges.
Ahead of its FY2024 earnings release next month, analysts expect HWM’s EPS to grow 44.6% year-over-year to $2.66. The company's earnings surprise history is promising. It topped the consensus estimates in all of the last four quarters.
Among the 21 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 17 “Strong Buy” ratings, one “Moderate Buy,” two “Holds,” and one “Strong Sell.”
This configuration has been fairly stable over the past months.
On January 14, Truist analyst Michael Ciarmoli raised the price target for Howmet Aerospace from $128 to $130 and maintained a “Buy” rating. In a broader Aerospace & Defense industry outlook for 2025, Ciarmoli noted that while optimism remains around aero OEM production recovery, concerns persist over the aftermarket rally. Although aircraft production is expected to improve in 2025, planned production rate increases are progressing slower than anticipated. The firm also highlighted opportunities in the Defense sector, where the November election and DOGE announcement had pressured performance but created an appealing entry point for investors.
While HWM currently trades above its mean price target of $125.77, its Street-high price target of $145 implies a potential upside of 14.7% from the current price levels.
