| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 14 | 49.0x | 17.6x | Bottom tier | |
Growth | 86 | 18.1% | 7.1% | Top tier | |
Quality | 80 | 22.1% | 4.5% | Top tier | |
Safety | 76 | 1.5x | 2.6x | Top tier | |
Capital Return | 42 | 0.21% | 2.15% | Around median | |
Momentum | 56 | 56.1% | 2.3% | Around median | |
Sentiment | 73 | 14 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Howmet Aerospace produces advanced engineered components for the commercial aerospace, defense aerospace, industrial gas turbine, and commercial transportation markets, and generates revenue through four segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. Sources of demand include engines and their components, spare parts, aircraft fasteners, engineered structures, and aluminum wheels, while the company also benefits from selling gas turbine components used to generate electricity for data centers. In the first half of fiscal 2026, spare parts accounted for approximately 22% of total revenue, after their revenue grew 37% to nearly $460 million in fiscal Q2 2026.
Fiscal Q2 2026 revenue was approximately $2.55 billion according to the earnings call, up 24% year over year, while organic growth was 21%. Net income according to EDGAR data reached $534 million, and earnings per share were $1.33, up 46%, while adjusted EBITDA rose 39%, and its margin expanded 340 basis points to 32.1%. The adjusted operating margin was 28.8%, with free cash flow of $479 million during the quarter and approximately $840 million during the first half.
Engine Products was the largest segment, with revenue of $1.37 billion, or approximately 54% of quarterly revenue, after growing 32%, and its adjusted EBITDA margin rose to 37.7%. Fastening Systems recorded revenue of $589 million, up 37%, with a margin of 30.1%, while Engineered Structures revenue declined 13% to $269 million due to the sale of the Savannah facility and was approximately flat excluding the impact of the sale. Forged Wheels revenue increased 14% due to the pass-through of higher aluminum costs despite an 8% year-over-year decline in volumes.
The analyst consensus is “Buy,” with an average price target of $317.09, versus a high target of $370 and a low target of $270. The average target is slightly above the 52-week range high of $310, but the wide target range reflects meaningful differences in estimates of the sustainability of aerospace and gas turbine growth and margins. The available data do not include a usable price-to-earnings ratio, so the stock's valuation here is based on the target range, the 52-week range, and financial performance rather than an unavailable earnings multiple.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Revenue reached $2.55 billion, up 24% year over year, and organic growth was 21%. Earnings per share rose 46% to $1.33, while the adjusted EBITDA margin reached 32.1% after improving 340 basis points. Momentum came from 28% growth in commercial aerospace, 38% growth in gas turbines, and 37% growth in spare parts to nearly $460 million.
The company expects revenue of $10.05 billion, plus or minus $50 million. It is targeting adjusted EBITDA of $3.23 billion, earnings per share of $5.27, and free cash flow of $1.9 billion. For fiscal Q3 2026, it expects revenue of $2.575 billion and earnings per share of $1.35, with narrow ranges around each figure.
Gas turbine revenue grew 38% in fiscal Q2 2026, driven by the need for natural gas power generation for data centers. Howmet holds a global share exceeding 50% in gas turbine blades and completed negotiations with seven major customers. The company is investing in new capacity in Japan, Europe, and Virginia, but new commitments may require approximately two years before entering production in 2028 and beyond.
Automated analysis for informational purposes only — not investment advice.
Howmet completed the acquisition of CAM on April 6, 2026, for approximately $1.8 billion, and Fastening Systems revenue in fiscal Q2 2026 reached approximately $589 million, up 37%. Integrating CAM, which had a margin of approximately 20%, diluted the segment margin compared with Howmet's existing businesses, which had a margin near 30%. Management expects some operating savings to begin in the second half of fiscal 2026, but most savings and the positive impact on earnings per share are expected in 2027.
Commercial aerospace revenue rose 28% in fiscal Q2 2026 and 26% organically, supported by new aircraft and spare parts. Management expects higher production rates for the Boeing 787 and Airbus A350, along with increases in the 737 and A320, and the fasteners business has begun receiving demand supporting higher wide-body aircraft rates during 2027. Howmet is also building production of LEAP-1B and GTF Advantage components to meet original equipment and retrofit program needs during 2027.
Fiscal Q2 2026 generated free cash flow of $479 million, bringing the first-half total to approximately $840 million. The company repurchased $800 million of shares through July 2026 and raised the quarterly dividend for fiscal Q3 2026 to $0.14 per share. It also repaid a Japanese yen loan valued at $186 million and is targeting a return of net debt to approximately one times adjusted EBITDA by the end of fiscal 2026.
