How Strong Q3 Results and Raised Guidance at Howmet Aerospace (HWM) Have Changed Its Investment Story

• Howmet Aerospace reported strong third quarter 2025 results, with sales rising to US$2.09 billion and net income reaching US$385 million, supported by robust performance in the commercial and defense aerospace sectors.
• The company reinforced shareholder confidence by raising full-year guidance, executing further stock buybacks, and increasing its quarterly dividend amid ongoing demand momentum and profitability improvements.
• We'll explore how Howmet's upgraded full-year outlook and expanded capital returns may influence its longer-term investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

Howmet Aerospace Investment Narrative Recap

To own Howmet Aerospace, you need to believe in sustained global air travel growth, rising commercial aircraft production, and ongoing defense modernization fueling consistent demand for Howmet’s advanced components. The strong Q3 results and raised guidance affirm the positive momentum in demand, however, they do not materially reduce the company’s reliance on major OEM customers, which remains the most immediate risk to growth if procurement or build rates shift unexpectedly.

Amidst these strong business results, the announcement of continued share repurchases, US$300 million in Q3 alone, directly ties capital deployment to improving shareholder returns. This move reinforces Howmet’s short-term catalyst: robust free cash flow generation linked closely to healthy aerospace sector demand.

Yet investors should also know: in contrast to Howmet’s current earnings strength, concentrated exposure to a small set of large customers remains a risk if contract dynamics suddenly change...

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

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

Uncover how Howmet Aerospace's forecasts yield a $211.99 fair value, a 3% upside to its current price.

Exploring Other Perspectives

Six Simply Wall St Community contributors estimate Howmet’s fair value between US$130.02 and US$211.99 per share. While expectations for robust demand support the company’s outlook, readers should explore how differing assumptions about OEM supply chain stability can shape valuation.

Explore 6 other fair value estimates on Howmet Aerospace - why the stock might be worth as much as $211.99!

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.

Ready For A Different Approach?

Our daily scans reveal stocks with breakout potential. Don't miss this chance:

• This technology could replace computers: discover 28 stocks that are working to make quantum computing a reality.
• We've found 20 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• Uncover the next big thing with financially sound penny stocks that balance risk and reward.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com