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    Earnings-Per-Share Surge Could Be A Game Changer For Howmet Aerospace (HWM)

    Simply Wall St·12/15/2025 04:25:19
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    • In recent years, Howmet Aerospace has grown annual revenue by 11.4% and lifted earnings per share by a very large 42.7%, helped by active share repurchases and rising market share for its lightweight, multi-material components across transportation applications.
    • This combination of solid top-line expansion and aggressive capital return suggests management has been effective at turning operational progress into faster per-share earnings growth.
    • Now we’ll explore how this powerful earnings-per-share acceleration influences Howmet’s existing investment narrative around future margin expansion.

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    Howmet Aerospace Investment Narrative Recap

    To own Howmet Aerospace, you need to believe that demand for lightweight, engineered components in commercial aerospace and transportation will keep supporting healthy revenue and margin growth. The recent confirmation of rapid earnings per share expansion, helped by buybacks, reinforces the short term catalyst of higher content per aircraft and vehicles, but it does not materially change the key near term risk that heavy capacity spending could run ahead of demand and pressure free cash flow.

    The most relevant recent announcement here is Howmet’s ongoing share repurchase activity, with over US$1,428,000,000 spent since 2021 to reduce the share count. This capital return amplifies the impact of operational gains on earnings per share, but it also raises the bar for future cash generation if large aerospace and industrial gas turbine expansions take longer than expected to ramp, making the sustainability of this approach an important question against those growth catalysts.

    Yet investors should also be aware that if new capacity outpaces actual orders, Howmet could face...

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

    Howmet Aerospace’s narrative projects $10.3 billion in revenue and $2.2 billion in earnings by 2028.

    Uncover how Howmet Aerospace's forecasts yield a $232.15 fair value, a 17% upside to its current price.

    Exploring Other Perspectives

    HWM 1-Year Stock Price Chart
    HWM 1-Year Stock Price Chart

    Six members of the Simply Wall St Community currently place Howmet’s fair value between US$130.02 and US$232.15, reflecting very different expectations. As you weigh those views against the company’s heavy capital spending plans, consider how any mismatch between new capacity and actual aerospace demand might affect margins and cash generation over time.

    Explore 6 other fair value estimates on Howmet Aerospace - why the stock might be worth as much as 17% more than the current price!

    Build Your Own Howmet Aerospace Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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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.