- In the past week, Howmet Aerospace reported its second quarter 2025 earnings, showing year-over-year increases in sales to US$2.05 billion and net income to US$407 million, while also raising its full-year revenue guidance to US$8.08–8.18 billion.
- An interesting aspect is that these robust results and the improved outlook came alongside the completion of a major US$1.70 billion share repurchase program covering more than 30 million shares.
- We’ll examine how Howmet’s upgraded revenue guidance and ongoing strong earnings performance influence the investment narrative for the company.
Uncover the next big thing with financially sound penny stocks that balance risk and reward.
Howmet Aerospace Investment Narrative Recap
To own shares in Howmet Aerospace, an investor needs to believe in the ongoing momentum in global aerospace demand and the company’s ability to translate production ramp-ups into sustained profits. The recent earnings beat and higher revenue guidance reinforce the short-term catalyst of rising aircraft builds, but do not fully offset the key risk: potential disruptions in the aerospace supply chain or shifts in OEM production schedules that could impact growth rates.
Among recent announcements, Howmet’s completion of its extended US$1.70 billion share buyback program stands out, reducing the share count and potentially enhancing future per-share earnings. While this move is supportive for existing shareholders, its impact on core business growth and exposure to OEM supply chain volatility, still the most important risk, remains indirect at best.
Yet even as recent results have been strong, investors should be especially alert to the possibility of aircraft OEMs adjusting build rates or procurement, since...
Read the full narrative on Howmet Aerospace (it's free!)
Howmet Aerospace's narrative projects $10.3 billion revenue and $2.2 billion earnings by 2028. This requires 10.1% yearly revenue growth and a $0.8 billion earnings increase from $1.4 billion.
Uncover how Howmet Aerospace's forecasts yield a $201.95 fair value, a 12% upside to its current price.
Exploring Other Perspectives
Six fair value views from the Simply Wall St Community show estimates between US$130.02 and US$201.95 per share. While supply chain bottlenecks remain a real risk to near-term growth, these varied perspectives invite you to compare many possible scenarios for Howmet’s future performance.
Explore 6 other fair value estimates on Howmet Aerospace - why the stock might be worth 28% less 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.
Ready For A Different Approach?
The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:
- We've found 19 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
- These 14 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
- The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 18 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.
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