Howmet operates a vertically integrated business model centered on "high-moat" components that are mission-critical, with parts that must withstand extreme temperatures (over 3,000°F) and pressures that would melt standard metals. Howmet provides over 90% of the structural and rotating parts for modern jet engines, including those for the CFM LEAP and Pratt & Whitney GTF engines.
Cyborg Score Rationale
Howmet shares have surged approximately 85% over one year, far outstripping the S&P 500's performance. The company reported record FY2025 results with $8.3B revenue (+11% YoY), GAAP EPS $3.71, and $1.9B cash from operations. Analysts point to three aligned growth engines (commercial aerospace, aftermarket/spare parts mix and gas-turbine demand) and strong incremental margins that support a premium multiple.
Top Insights
Record FY2025 results: $8.3B revenue (+11% YoY), GAAP EPS $3.71, and $1.9B cash from operations.
Fastening Systems has become a major growth engine following the 2025-2026 acquisition of Consolidated Aerospace Manufacturing (CAM).
The gas turbines business is entering its largest growth phase in years, with extremely high demand for electricity generation, especially from natural gas for data centers.
At 72 years old, CEO John Plant's eventual retirement is a focal point for institutional investors, as much of the stock's current "premium" valuation is tied to his management style.
Named Competitors
Precision Castparts — Casting and aerospace components provider
TransDigm Group — Aerospace components and systems