Howmet Aerospace (HWM) Stock Forecast & Price Target

Howmet Aerospace Inc has demonstrated strong revenue growth, with a 9% year-over-year increase in 4Q25, driven by various factors such as higher aluminum costs and favorable foreign exchange, despite a slight decline in fiscal year 2025. The company has experienced significant growth in its spares segment, particularly in defense aerospace structures, which saw a remarkable 41% increase in FY25, underlining the company's robust positioning in the aerospace sector. Furthermore, the upward trend in capital expenditures, fueled by rising customer orders in aerospace and gas turbines, suggests a positive trajectory for future financial performance and supports sustained demand for commercial and defense aftermarket services.

Howmet Aerospace Inc has experienced a notable decline in its Forged Wheels segment, with volumes decreasing 10% year-over-year in the fourth quarter of fiscal year 2025 and a cumulative decline of 13% for the full year, attributed to economic uncertainty and market pressures. Additionally, the company reported a 6% year-over-year decline in commercial aerospace structures for the fourth quarter, indicating challenges in its product rationalization efforts and the optimization of its structures portfolio. Amid these declines, management anticipates continued margin pressure within its Engine Products segment due to start-up costs from new manufacturing facilities, leading to a negative outlook for 2026 as productivity gains and operational efficiencies are not expected to materialize until 2027.