How Rising Aircraft Production Could Reshape Howmet Aerospace’s (HWM) Investment Narrative and Earnings Outlook

• In recent days, Howmet Aerospace has capitalized on robust growth in the commercial aerospace sector, with rising aircraft production by major manufacturers such as Boeing and Airbus increasing demand for Howmet's engine spares and components.
• This continued strength in air travel demand has reinforced Howmet's position among key peers, supporting a positive outlook for its sales and operations.
• Given this acceleration in aircraft production, we will examine how it could alter the company's investment narrative and future earnings outlook.

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Howmet Aerospace Investment Narrative Recap

To own Howmet Aerospace, you need to believe that continued momentum in global air travel and climbing aircraft production rates will sustain strong demand for advanced engine components, a trend reinforced by the recent ramp-up at Boeing and Airbus. The latest news meaningfully boosts the short-term catalyst of elevated order flow and sales visibility, but it does not erase Howmet’s biggest risk: potential disruptions or slowdowns in OEM production schedules, which could quickly ripple through to future revenue.

One of the most relevant recent announcements was Howmet's upward revision of its 2025 revenue guidance to a range of US$8.08 billion–US$8.18 billion, shortly after posting another quarter of robust year-over-year earnings growth. This financial update closely ties into the positive production trends in commercial aerospace, directly supporting the current growth narrative amid stronger manufacturer demand.

However, should key aircraft manufacturers cut build rates or experience unexpected bottlenecks, investors need to be aware that…

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

Howmet Aerospace's outlook anticipates $10.3 billion in revenue and $2.2 billion in earnings by 2028. This implies a 10.2% annual revenue growth and a $0.8 billion increase in earnings from the current $1.4 billion.

Uncover how Howmet Aerospace's forecasts yield a $202.34 fair value, a 14% upside to its current price.

Exploring Other Perspectives

Seven recent Community estimates place Howmet’s fair value between US$124.85 and US$202.34 per share, reflecting a wide span of investor outlooks. While aircraft production is rising, the potential for OEM disruptions remains a key factor affecting both consensus and independent valuations, see how other investors view the company’s prospects.

Explore 7 other fair value estimates on Howmet Aerospace - why the stock might be worth as much as 14% 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 2 important warning signs 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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