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    Is Howmet Aerospace's Strong Q2 Beat and Rising Demand Changing the Long-Term Case for HWM?

    Simply Wall St·09/14/2025 16:14:40
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    • Howmet Aerospace recently reported second quarter results, posting adjusted EPS of US$0.91 and revenue of US$2.1 billion, both of which surpassed analysts' forecasts.
    • This outperformance, largely fueled by growth in commercial aerospace and robust defense sector demand, underscores Howmet's strong position as upcoming defense budget allocations are anticipated to further support business growth.
    • We'll explore how Howmet's stronger-than-expected quarterly results and rising aerospace demand influence its long-term investment case.

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    Howmet Aerospace Investment Narrative Recap

    To be a Howmet Aerospace shareholder, you need to believe that global commercial and defense aerospace markets will keep growing, fueling long-term demand for the company's advanced components. While the recent earnings beat adds near-term momentum, the chief catalyst remains sustained aircraft builds, yet supply chain issues and heavy capital spending still loom as major risks. The latest results do not fundamentally change those dynamics, but do help reduce concerns around recent demand volatility.

    Among the company’s recent updates, the board’s decision to increase the quarterly common stock dividend to US$0.12 per share stands out. This move offers incremental value for shareholders and signals management’s confidence in ongoing cash flow, though it doesn’t directly address potential risks tied to rising capital expenditures or possible margin pressures if growth slows. For those watching catalysts, dividend growth may signal underlying business strength amid broader industry tailwinds.

    However, despite robust demand, investors should not overlook the risk if expanding production capacity...

    Read the full narrative on Howmet Aerospace (it's free!)

    Howmet Aerospace's outlook anticipates $10.3 billion in revenue and $2.2 billion in earnings by 2028. This is based on a forecasted annual revenue growth rate of 10.2% and represents an increase of $0.8 billion in earnings from the current $1.4 billion level.

    Uncover how Howmet Aerospace's forecasts yield a $204.31 fair value, a 10% upside to its current price.

    Exploring Other Perspectives

    HWM Community Fair Values as at Sep 2025
    HWM Community Fair Values as at Sep 2025

    Across 7 independent fair value estimates from the Simply Wall St Community, targets for Howmet range from US$124.85 to US$204.31 per share. While this sample signals wide disagreement, many participants are focused on risks like heavy capital spending, showing just how much opinions about the company's future can vary.

    Explore 7 other fair value estimates on Howmet Aerospace - why the stock might be worth as much as 10% more than the current price!

    Build Your Own Howmet Aerospace Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.