Does Preferred Stock Redemption and CNBC Spotlight Signal a Strategic Shift for Howmet Aerospace (HWM)?

• On November 17, 2025, Howmet Aerospace Inc. announced it will redeem all outstanding shares of its $3.75 Cumulative Preferred Stock on December 17, 2025, at US$100 per share plus US$0.8125 in accrued but unpaid dividends per share, affecting 546,024 shares.
• A recent endorsement by Jim Cramer on CNBC’s ‘Mad Money’ attracted notable attention, possibly shaping investor perceptions of the company’s outlook and stability.
• We’ll explore how Jim Cramer's favorable comments may impact Howmet Aerospace’s investment case and future market position.

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Howmet Aerospace Investment Narrative Recap

The core belief for many Howmet Aerospace shareholders is continued robust demand for commercial and defense aircraft, which supports strong order backlogs and multi-year earnings visibility. The recent preferred stock redemption news is unlikely to materially affect the main near-term catalyst, which remains healthy production rates from key OEM customers; however, the greatest risk continues to be any disruption to OEM supply chains or changes in build rates, which could directly impact Howmet’s revenue trajectory.

Among recent company developments, the completed share repurchase program that retired 31.58 million shares stands out as particularly relevant. Such actions can support shareholder value and reinforce confidence, especially as the company manages major new capacity expansions that aim to tap into growing aerospace demand. But while these initiatives can strengthen Howmet's position, investors should stay mindful of potential margin pressure if demand softens or if industry overcapacity emerges.

By contrast, it’s important for investors to also keep in mind the risks tied to OEM customer concentration, as any unexpected contract renegotiations or destocking could...

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

Howmet Aerospace's narrative projects $10.3 billion revenue and $2.2 billion earnings by 2028. This requires 10.2% yearly revenue growth and a $0.8 billion increase in earnings from $1.4 billion today.

Uncover how Howmet Aerospace's forecasts yield a $232.15 fair value, a 13% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members supplied 7 fair value estimates for Howmet Aerospace, ranging from US$130.02 to US$232.15 per share. Many see potential in robust aircraft backlogs but concerns about OEM reliance remain central to broader earnings stability debates, explore alternative viewpoints for a broader picture.

Explore 7 other fair value estimates on Howmet Aerospace - why the stock might be worth as much as 13% 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.

• A great starting point for your Howmet Aerospace research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Howmet Aerospace research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Howmet Aerospace's overall financial health at a glance.

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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.

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