Howmet Aerospace (HWM) Stock Forecast & Price Target

Howmet Aerospace Inc. reported a 9% year-over-year revenue growth in the fourth quarter of 2025, driven largely by increased sales in the spares segment, which grew approximately 33% year-over-year, highlighting the strong demand for its products. The company's defense aerospace structures witnessed remarkable performance, with fourth-quarter sales rising 37% year-over-year and full-year growth of 41%, reflecting a significant ascent in capital expenditures supported by rising orders in the aerospace and gas turbine sectors. Furthermore, with engine spares sales projected to reach around $1.6 billion for 2025—25% higher than the previous year—Howmet's financial outlook appears robust, bolstered by increasing maintenance needs of the existing fleet and continued strength in the commercial aftermarket and defense markets.

Howmet Aerospace Inc has experienced a significant decline in its Forged Wheels segment, with volumes dropping 10% year-over-year in the fourth quarter of 2025 and 13% for the full fiscal year, primarily due to challenges in the commercial truck market amid economic uncertainty. Additionally, commercial aerospace structures have also seen a decrease of 6% year-over-year in the fourth quarter, reflecting the company's strategic decision to exit lower-margin programs and optimize its portfolio, which may hinder short-term revenue growth. Furthermore, the anticipated near-term margin pressure at Engine Products, coupled with the costs associated with new manufacturing facility start-ups, suggests that operating performance may remain weak through 2026, limiting potential recovery and profitability.