Recent News
On December 22, 2025 Howmet announced a definitive agreement to acquire Consolidated Aerospace Manufacturing (CAM) from Stanley Black & Decker for approximately $1.8 billion; the company projected CAM revenue of $485–$495 million for FY2026 and adjusted EBITDA margin above 20%.
On February 17, 2026 Howmet priced a $1.2 billion multi‑tranche public notes offering to finance the planned CAM acquisition, consisting of three tranches maturing from 2028–2036 with coupons in the mid‑3% to mid‑4% range.
Company filings note a small bolt‑on purchase—Brunner Manufacturing Co., Inc.—closed on February 6, 2026, and reiterate the CAM transaction’s expected close in the first half of 2026, subject to customary approvals.
Technical Analysis
ADX at 33.39 indicates a strong trend; directional indicators show DI+ 33.50 rising while DI‑ 13.56 falls, creating a bullish directional profile that supports a continued upside bias into near‑term catalysts.
MACD sits at 10.93, above its signal line at 7.69 and trending higher, which represents a bullish momentum cross above the signal line and confirms the current positive momentum phase.
Price trades above the 20‑/50‑/200‑day averages (price close $260.95 vs 20‑day $239.01, 50‑day $218.68, 200‑day $192.89), with the close near and slightly above the reported 52‑week high; the placement above key averages reinforces upside bias but increases sensitivity to mean reversion.
MRO registers 31.19 (positive), signaling price sits above the model target and therefore carries contraction risk consistent with an elevated valuation posture.
RSI at 63.28 and rising shows momentum strength without reaching classic overbought extremes; short‑term strength remains intact while watches for RSI >70 as a nearer‑term exhaustion cue.
Fundamental Analysis
Revenue reached $2.168 billion for the period ending 2025‑12‑31 with reported record fourth quarter revenue and notable year‑over‑year gains; net income totaled $372 million. The company cited stronger commercial and defense aerospace demand and noted a one‑time pension annuitization charge in the quarter.
Profitability: operating margin at 25.923% and EBIT margin at 21.541% sit above the industry peer mean EBIT margin of 16.707%, indicating superior near‑term operating conversion versus the industry peer mean. QoQ EBIT margin contracted roughly 15.42% while YoY EBIT margin fell about 5.71%, reflecting recent cost or mix pressures despite strong absolute margins.
Growth: revenue growth YoY equals 23.92% and revenue growth QoQ equals 115.62%, signaling significant recent top‑line acceleration; earnings growth shows strong QoQ and YoY jumps (earnings growth QoQ ~139.45%, YoY ~149.14%).
Cash and leverage: operating cash flow $564 million and free cash flow $530 million produce a free cash flow yield of 0.63%. Net debt stands near $2.308 billion with debt/EBITDA of 5.95; the company proceeded with a targeted $1.2 billion debt issuance to help fund the CAM acquisition. The incremental debt program plus $600 million planned borrowings and cash on hand tie directly to the acquisition financing plan.
Capital markets multiples: P/E at 199.20, P/B at 15.71, and P/S at 38.78 sit noticeably above their respective industry peer means (P/E industry peer mean ~98.93; P/B industry peer mean ~5.11; P/S industry peer mean ~12.04), reflecting rich market pricing and elevated expectations. WMDST values the stock as over‑valued based on its composite valuation framework and the current multiple expansion.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-12 |
| NEXT REPORT DATE: | 2026-05-14 |
| CASH FLOW | Begin Period Cash Flow | $ 660.0 M |
| Operating Cash Flow | $ 564.0 M | |
| Capital Expenditures | $ -124.00 M | |
| Change In Working Capital | $ 169.0 M | |
| Dividends Paid | $ -50.00 M | |
| Cash Flow Delta | $ 83.0 M | |
| End Period Cash Flow | $ 743.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 2.2 B | |
| Forward Revenue | $ 785.5 M | |
| COSTS | ||
| Cost Of Revenue | $ 1.4 B | |
| Depreciation | $ 73.0 M | |
| Depreciation and Amortization | $ 73.0 M | |
| Research and Development | $ 10.0 M | |
| Total Operating Expenses | $ 1.6 B | |
| PROFITABILITY | ||
| Gross Profit | $ 756.0 M | |
| EBITDA | $ 540.0 M | |
| EBIT | $ 467.0 M | |
| Operating Income | $ 562.0 M | |
| Interest Income | $ 7.0 M | |
| Interest Expense | $ 37.0 M | |
| Net Interest Income | $ -30.00 M | |
| Income Before Tax | $ 430.0 M | |
| Tax Provision | $ 58.0 M | |
| Tax Rate | 13.488 % | |
| Net Income | $ 372.0 M | |
| Net Income From Continuing Operations | $ 372.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.97 | |
| EPS Actual | $ 1.05 | |
| EPS Difference | $ 0.08 | |
| EPS Surprise | 8.247 % | |
| Forward EPS | $ 1.34 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 11.2 B | |
| Intangible Assets | $ 4.5 B | |
| Net Tangible Assets | $ 874.0 M | |
| Total Current Assets | $ 3.8 B | |
| Cash and Short-Term Investments | $ 742.0 M | |
| Cash | $ 742.0 M | |
| Net Receivables | $ 779.0 M | |
| Inventory | $ 1.8 B | |
| Long-Term Investments | $ 126.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 845.0 M | |
| Short-Term Debt | $ 191.0 M | |
| Total Current Liabilities | $ 1.8 B | |
| Net Debt | $ 2.3 B | |
| Total Debt | $ 3.2 B | |
| Total Liabilities | $ 5.8 B | |
| EQUITY | ||
| Total Equity | $ 5.4 B | |
| Retained Earnings | $ 4.1 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 13.32 | |
| Shares Outstanding | 402.000 M | |
| Revenue Per-Share | $ 5.39 | |
| VALUATION | Market Capitalization | $ 84.1 B |
| Enterprise Value | $ 86.6 B | |
| Enterprise Multiple | 160.281 | |
| Enterprise Multiple QoQ | 23.97 % | |
| Enterprise Multiple YoY | 71.511 % | |
| Enterprise Multiple IPRWA | HWM: 160.281 high: 137.577 mean: 62.021 median: 59.052 low: 0.356 |
|
| EV/R | 39.922 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.088 | |
| Asset To Liability | 1.919 | |
| Debt To Capital | 0.375 | |
| Debt To Assets | 0.287 | |
| Debt To Assets QoQ | -4.165 % | |
| Debt To Assets YoY | 50322.807 % | |
| Debt To Assets IPRWA | high: 0.367 HWM: 0.287 mean: 0.271 median: 0.258 low: 0.003 |
|
| Debt To Equity | 0.6 | |
| Debt To Equity QoQ | -8.893 % | |
| Debt To Equity YoY | 45029.323 % | |
| Debt To Equity IPRWA | high: 1.021 median: 0.606 HWM: 0.6 mean: 0.593 low: 0.003 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 15.707 | |
| Price To Book QoQ | 5.995 % | |
| Price To Book YoY | 47.989 % | |
| Price To Book IPRWA | high: 17.452 HWM: 15.707 mean: 5.111 median: 3.738 low: -8.298 |
|
| Price To Earnings (P/E) | 199.196 | |
| Price To Earnings QoQ | 1.146 % | |
| Price To Earnings YoY | 25.154 % | |
| Price To Earnings IPRWA | high: 235.389 HWM: 199.196 mean: 98.935 median: 84.204 low: 22.275 |
|
| PE/G Ratio | 18.924 | |
| Price To Sales (P/S) | 38.783 | |
| Price To Sales QoQ | 7.452 % | |
| Price To Sales YoY | 53.583 % | |
| Price To Sales IPRWA | high: 43.211 HWM: 38.783 mean: 12.036 median: 7.253 low: 1.653 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 147.454 | |
| Forward PE/G | 14.009 | |
| Forward P/S | 107.039 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -3.231 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.194 | |
| Asset Turnover Ratio QoQ | 3.165 % | |
| Asset Turnover Ratio YoY | 8.086 % | |
| Asset Turnover Ratio IPRWA | high: 0.432 HWM: 0.194 mean: 0.186 median: 0.15 low: 0.007 |
|
| Receivables Turnover | 2.607 | |
| Receivables Turnover Ratio QoQ | 10.584 % | |
| Receivables Turnover Ratio YoY | -0.312 % | |
| Receivables Turnover Ratio IPRWA | high: 9.75 mean: 4.246 median: 3.897 HWM: 2.607 low: 0.608 |
|
| Inventory Turnover | 0.738 | |
| Inventory Turnover Ratio QoQ | 1.214 % | |
| Inventory Turnover Ratio YoY | 7.192 % | |
| Inventory Turnover Ratio IPRWA | high: 6.44 mean: 2.031 median: 1.437 HWM: 0.738 low: 0.041 |
|
| Days Sales Outstanding (DSO) | 34.997 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 102.583 | |
| Cash Conversion Cycle Days QoQ | 1.697 % | |
| Cash Conversion Cycle Days YoY | -0.632 % | |
| Cash Conversion Cycle Days IPRWA | high: 264.697 HWM: 102.583 mean: 100.222 median: 43.483 low: -6.466 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 1.08 | |
| CapEx To Revenue | -0.057 | |
| CapEx To Depreciation | -1.699 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 8.2 B | |
| Net Invested Capital | $ 8.4 B | |
| Invested Capital | $ 8.4 B | |
| Net Tangible Assets | $ 874.0 M | |
| Net Working Capital | $ 2.0 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.419 | |
| Current Ratio | 2.134 | |
| Current Ratio QoQ | -9.324 % | |
| Current Ratio YoY | -1.687 % | |
| Current Ratio IPRWA | high: 7.56 HWM: 2.134 mean: 1.449 median: 1.188 low: 0.914 |
|
| Quick Ratio | 1.09 | |
| Quick Ratio QoQ | -4.225 % | |
| Quick Ratio YoY | 10.911 % | |
| Quick Ratio IPRWA | high: 4.29 HWM: 1.09 mean: 0.964 median: 0.894 low: 0.405 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 5.95 | |
| Cost Of Debt | 0.975 % | |
| Interest Coverage Ratio | 12.622 | |
| Interest Coverage Ratio QoQ | -12.218 % | |
| Interest Coverage Ratio YoY | 16.867 % | |
| Interest Coverage Ratio IPRWA | high: 20.526 HWM: 12.622 mean: 9.483 median: 7.208 low: -4.154 |
|
| Operating Cash Flow Ratio | 0.318 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 60.232 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 7.44 | |
| Dividend Payout Ratio | 0.134 | |
| Dividend Rate | $ 0.12 | |
| Dividend Yield | 0.001 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.018 % | |
| Revenue Growth | 3.782 % | |
| Revenue Growth QoQ | 115.621 % | |
| Revenue Growth YoY | 23.919 % | |
| Revenue Growth IPRWA | high: 25.079 % median: 7.83 % mean: 6.105 % HWM: 3.782 % low: -6.237 % |
|
| Earnings Growth | 10.526 % | |
| Earnings Growth QoQ | 139.445 % | |
| Earnings Growth YoY | 149.136 % | |
| Earnings Growth IPRWA | high: 47.826 % HWM: 10.526 % mean: -0.672 % median: -8.156 % low: -16.547 % |
|
| MARGINS | ||
| Gross Margin | 34.871 % | |
| Gross Margin QoQ | 11.727 % | |
| Gross Margin YoY | 9.537 % | |
| Gross Margin IPRWA | high: 59.751 % HWM: 34.871 % mean: 20.967 % median: 19.461 % low: 5.405 % |
|
| EBIT Margin | 21.541 % | |
| EBIT Margin QoQ | -15.416 % | |
| EBIT Margin YoY | -5.708 % | |
| EBIT Margin IPRWA | high: 37.49 % HWM: 21.541 % mean: 16.707 % median: 11.003 % low: -6.397 % |
|
| Return On Sales (ROS) | 25.923 % | |
| Return On Sales QoQ | -0.085 % | |
| Return On Sales YoY | 13.473 % | |
| Return On Sales IPRWA | HWM: 25.923 % high: 23.071 % median: 10.71 % mean: 8.328 % low: -6.397 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 530.0 M | |
| Free Cash Flow Yield | 0.63 % | |
| Free Cash Flow Yield QoQ | 12.299 % | |
| Free Cash Flow Yield YoY | -20.455 % | |
| Free Cash Flow Yield IPRWA | high: 3.808 % mean: 1.51 % median: 1.251 % HWM: 0.63 % low: -0.544 % |
|
| Free Cash Growth | 25.296 % | |
| Free Cash Growth QoQ | 10.15 % | |
| Free Cash Growth YoY | -81.028 % | |
| Free Cash Growth IPRWA | high: 322.482 % mean: 39.593 % HWM: 25.296 % median: -17.658 % low: -285.652 % |
|
| Free Cash To Net Income | 1.425 | |
| Cash Flow Margin | 26.015 % | |
| Cash Flow To Earnings | 1.516 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 3.328 % | |
| Return On Assets QoQ | -3.954 % | |
| Return On Assets YoY | 11.678 % | |
| Return On Assets IPRWA | high: 5.166 % HWM: 3.328 % mean: 2.282 % median: 1.99 % low: -0.304 % |
|
| Return On Capital Employed (ROCE) | 4.964 % | |
| Return On Equity (ROE) | 0.069 | |
| Return On Equity QoQ | -8.167 % | |
| Return On Equity YoY | -0.43 % | |
| Return On Equity IPRWA | high: 0.086 HWM: 0.069 mean: 0.029 median: 0.025 low: -0.048 |
|
| DuPont ROE | 7.126 % | |
| Return On Invested Capital (ROIC) | 4.808 % | |
| Return On Invested Capital QoQ | -3.859 % | |
| Return On Invested Capital YoY | -107.753 % | |
| Return On Invested Capital IPRWA | high: 5.625 % HWM: 4.808 % median: 3.889 % mean: 3.3 % low: -0.522 % |
|