HWM raises 2025 EPS outlook as Q1 earnings jump 51%, fueled by pricing power, cost control and strength in the aerospace markets.
Here is how Howmet (HWM) and Rolls-Royce Holdings PLC (RYCEY) have performed compared to their sector so far this year.
Howmet Aerospace Inc. is a critical, near-monopoly supplier of essential aircraft components, benefiting from high barriers to entry and surging demand from Boeing and Airbus. HWM financials are robust: Q1 '25 revenues up 6.5%, net income up 41.5%, and significant margin expansion across all business segments signal strong operational execution. Aggressive share buybacks, a doubled dividend, and powerful cash flow generation directly reward shareholders and reflect management's confidence in future growth.
HWM gains altitude as booming commercial aerospace sales drive 9% revenue growth and 104% stock surge year over year.
HWM nears its 52-week high after a 100% surge, backed by strong aerospace demand and robust defense spending.
Howmet Aerospace will need to produce more parts this year for engines used in Boeing and Airbus narrowbody jets, as the planemakers ramp up output and the need for spares grows, the parts supplier's CEO John Plant said on Friday.
Among the Zacks Rank #1 (Strong Buy) list, several Aerospace Defense stocks are standing out and have reached new 52-week highs this week.
These three market leaders are showing strong growth metrics and are poised to continue their outperformance.
Downgrading HWM to hold as valuation at 28x forward EBITDA now fully reflects near-term upside, making risk-reward less attractive. Strong Q1 results driven by aerospace spares and defense, with aftermarket sales boosting margins and long-term growth runway from F-35 spares. Industrial Gas Turbine segment benefits from global energy demand and AI/data center growth, with capacity expansions underway to capture more upside.
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Howmet (HWM) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.
Does Howmet (HWM) have what it takes to be a top stock pick for momentum investors? Let's find out.