Howmet Aerospace’s Strong Growth Forecast Amid Impressive Earnings Records

With a market capitalization of $49.9 billion, Howmet Aerospace Inc. (HWM) provides advanced engineered solutions for the aerospace and transportation sectors. This Pittsburgh-based firm operates through four segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels.

Howmet is set to announce its Q1 2025 earnings on Thursday, May 1, before the market opens. Analysts predict a non-GAAP profit of $0.77 per share, reflecting a 35.1% increase from last year’s $0.57 per share. Notably, Howmet has exceeded Wall Street’s bottom-line estimates in each of the last four quarters.

Moving forward, analysts forecast that Howmet Aerospace will report an adjusted EPS of $3.25 for the full fiscal 2025, which indicates a 20.8% growth compared to the $2.69 reported in fiscal 2024. Additionally, projections for fiscal 2026 suggest earnings will rise by 20.3% year-over-year to $3.91 per share.

In the past year, HWM shares have surged by 88.4%, significantly outperforming the S&P 500 Index’s ($SPX) 3.8% gain and the Industrial Select Sector SPDR Fund’s (XLI) 1.7% increase during the same period.

Following its robust Q4 2024 results released on February 13, Howmet’s stock remained relatively stable. The company, benefitting from a 13% growth in the commercial aerospace market, recorded Q4 revenue of $1.9 billion, a 9% year-over-year increase. Operating income reached $445 million, reflecting a 37% rise from the same quarter last year. Adjusted EPS was reported at $0.74, a 40% year-over-year jump that comfortably surpassed expectations of $0.72.

For fiscal 2025, Howmet Aerospace projects revenues between $7.93 billion and $8.13 billion, with an adjusted EPS estimated to be between $3.13 and $3.21, marking a significant improvement over 2024 levels.

Analysts maintain a strong optimism regarding HWM, assigning an overall “Strong Buy” rating. Among the 21 analysts covering the stock, 16 are “Strong Buys,” one is rated as a “Moderate Buy,” and four have “Holds.” The mean price target stands at $137.68, suggesting a potential upside of 15.2% from current levels.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any of the securities mentioned in this article. The information and data in this article are for informational purposes only. For more details, please view the Barchart Disclosure Policy here.

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of Nasdaq, Inc.