Howmet Aerospace (HWM) Stock Forecast & Price Target

Howmet Aerospace Inc. experienced a 9% year-over-year revenue growth in the fourth quarter of 2025, driven primarily by strong performance in defense aerospace structures, which saw a 37% increase year-over-year. Notably, spares sales surged, with commercial and defense spares growing approximately 31% and 33% year-over-year, respectively, indicating sustained demand in the aerospace sector. Additionally, record levels of capital expenditure in 2025, alongside increasing customer orders in aerospace and gas turbines, further underpin the company’s promising financial outlook.

Howmet Aerospace Inc experienced a significant decline in its Forged Wheels segment, with volumes decreasing by 10% year-over-year in the fourth quarter of 2025 and a total decline of 13% for the fiscal year, primarily attributed to economic uncertainties and tariff concerns impacting the commercial truck market. Additionally, while the company is rationalizing its commercial aerospace structures portfolio to focus on higher-margin programs, it still faced a 6% decline in this segment for the fourth quarter of 2025, indicating challenges in maintaining overall sales momentum. Lastly, management anticipates continued margin pressure within the Engine Products segment due to startup costs from new manufacturing facilities, projecting that operating leverage benefits will not materialize until 2027, which raises concerns over the short-term financial outlook.