Howmet Aerospace (NYSE:HWM) Hits New 12-Month High Following Strong Earnings

Key Points

• Howmet hit a 52-week high after beating Q1 expectations with adjusted EPS of $1.22 (vs. $1.11 est.) and revenue of $2.31B (vs. $2.24B), and it raised guidance for Q2 ($1.220–$1.240) and FY2026 ($4.880–$5.000).
• The company reported strong cash generation, deployed $300M to buybacks and announced a quarterly dividend of $0.12 (annualized $0.48, ~0.2% yield), while completing a $1.8B acquisition of Consolidated Aerospace Manufacturing that expands capabilities but increases leverage.

Howmet Aerospace Inc. (NYSE:HWM - Get Free Report) hit a new 52-week high during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $280.23 and last traded at $274.3160, with a volume of 650464 shares. The stock had previously closed at $256.43.

The company reported $1.22 EPS for the quarter, topping analysts' consensus estimates of $1.11 by $0.11. Howmet Aerospace had a return on equity of 30.41% and a net margin of 18.27%.The business had revenue of $2.31 billion for the quarter, compared to analysts' expectations of $2.24 billion. During the same quarter in the previous year, the firm earned $0.86 earnings per share. The business's revenue was up 19.1% compared to the same quarter last year. Howmet Aerospace has set its FY 2026 guidance at 4.880-5.000 EPS and its Q2 2026 guidance at 1.220-1.240 EPS.

Howmet Aerospace Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, May 26th. Stockholders of record on Friday, May 8th will be given a dividend of $0.12 per share. The ex-dividend date is Friday, May 8th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.2%. Howmet Aerospace's payout ratio is 12.94%.

Key Stories Impacting Howmet Aerospace

Here are the key news stories impacting Howmet Aerospace this week:

• Positive Sentiment: Q1 results beat and strong margins — Adjusted EPS $1.22 beat consensus (~$1.11) and revenue $2.31B topped estimates; operating margins and ROE improved meaningfully, supporting higher valuation multiples. Howmet Aerospace Reports First Quarter 2026 Results
• Positive Sentiment: Upgraded guidance — Q2 EPS guidance raised to $1.220–1.240 (vs. consensus ~$1.160) and FY2026 EPS raised to $4.880–5.000 (vs. consensus ~$4.64); revenue guide also above prior expectations, legitimizing the beat and supporting forward estimates. Guidance Detail
• Positive Sentiment: Strong cash generation and buybacks — record cash from operations and free cash flow, with $300M deployed to repurchases, which boosts return of capital and EPS support. Cash Flow & Buybacks
• Neutral Sentiment: Acquisition activity — completed the $1.8B acquisition of Consolidated Aerospace Manufacturing (CAM) and secured financing; expands capabilities but increases complexity and leverage. Acquisition Note
• Neutral Sentiment: Investor interest and coverage — mentions in IBD and analyst previews may draw buyer attention ahead of/after earnings. IBD Coverage
• Negative Sentiment: Lingering operational risks — analysts note ongoing supply-chain issues and transport softness that could pressure execution or near-term growth despite strong demand. Earnings Preview / Risks

Analyst Ratings Changes

A number of analysts have recently commented on HWM shares. KeyCorp started coverage on Howmet Aerospace in a research report on Wednesday, March 25th. They set a "sector weight" rating on the stock. UBS Group boosted their price target on Howmet Aerospace from $228.00 to $260.00 and gave the company a "neutral" rating in a research report on Tuesday, February 17th. Truist Financial set a $280.00 price target on Howmet Aerospace in a research report on Wednesday, March 11th. Citigroup dropped their price target on Howmet Aerospace from $283.00 to $271.00 and set a "buy" rating on the stock in a research report on Thursday, April 2nd. Finally, Royal Bank Of Canada boosted their price target on Howmet Aerospace from $275.00 to $300.00 and gave the company an "outperform" rating in a research report on Wednesday, March 11th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $266.89.

Insider Activity at Howmet Aerospace

In other Howmet Aerospace news, EVP Neil Edward Marchuk sold 45,150 shares of the business's stock in a transaction that occurred on Wednesday, February 18th. The stock was sold at an average price of $251.70, for a total transaction of $11,364,255.00. Following the transaction, the executive vice president owned 107,008 shares in the company, valued at approximately $26,933,913.60. The trade was a 29.67% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, VP Barbara Lou Shultz sold 1,000 shares of the business's stock in a transaction that occurred on Thursday, February 26th. The stock was sold at an average price of $260.00, for a total value of $260,000.00. Following the transaction, the vice president owned 23,874 shares in the company, valued at $6,207,240. The trade was a 4.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.85% of the company's stock.

Hedge Funds Weigh In On Howmet Aerospace

Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. SEB Asset Management AB acquired a new position in Howmet Aerospace during the 1st quarter worth approximately $15,019,000. Vision Retirement LLC increased its position in Howmet Aerospace by 27.3% during the 1st quarter. Vision Retirement LLC now owns 308 shares of the company's stock worth $71,000 after purchasing an additional 66 shares during the period. Swiss National Bank increased its position in Howmet Aerospace by 6.8% during the 1st quarter. Swiss National Bank now owns 1,120,884 shares of the company's stock worth $258,319,000 after purchasing an additional 71,500 shares during the period. Legacy Wealth Advisors LLC acquired a new position in Howmet Aerospace during the 1st quarter worth approximately $208,000. Finally, ANB Bank increased its position in Howmet Aerospace by 3.4% during the 1st quarter. ANB Bank now owns 2,818 shares of the company's stock worth $649,000 after purchasing an additional 92 shares during the period. Institutional investors and hedge funds own 90.46% of the company's stock.

Howmet Aerospace Price Performance

The company has a 50-day simple moving average of $245.66 and a 200-day simple moving average of $222.97. The company has a market cap of $110.70 billion, a price-to-earnings ratio of 74.65, a PEG ratio of 2.24 and a beta of 1.19. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.09 and a current ratio of 2.13.

Howmet Aerospace Company Profile

Howmet Aerospace Inc is an industrial technology company that designs, manufactures and repairs engineered metal products for the aerospace, transportation and industrial markets. Its product portfolio includes precision castings and forgings, engineered fasteners, seamless rolled rings, and complex components for turbine engines, airframes and industrial gas turbines. The company also provides aftermarket services such as component repair, overhaul and parts distribution to support the operating fleet of commercial and military customers.

Howmet serves a global customer base of original equipment manufacturers (OEMs) and aftermarket operators, with manufacturing, service and distribution facilities across North America, Europe and Asia.

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