Howmet Aerospace Inc

Howmet Aerospace maintains a capital structure with $5.35 billion in total equity and $2.86 billion in long-term debt, resulting in a debt-to-equity ratio of 0.53. The balance sheet holds $742 million in cash and equivalents against total liabilities of $5.83 billion. Operating cash flow stands at $1.88 billion, which comfortably covers capital expenditures of $453 million, indicating strong internal cash generation despite a negative net cash position after debt subtraction.

Profitability metrics show a return on equity of 32.58% and a return on assets of 15.6%, reflecting efficient use of its $11.18 billion asset base. The company generated $1.51 billion in net income on $8.25 billion in revenue, yielding a net margin of approximately 18.3%. These returns are supported by an operating income of $2.05 billion, demonstrating robust operational leverage in its manufacturing processes.

Revenue concentration is not detailed in segment or geographic breakdowns within the available data, but the company’s activity is centered on aerospace and defense applications. The lack of specific segment disclosure in the input prevents a granular analysis of revenue mix, though the industry classification confirms a focus on high-value aerospace components.

Growth trajectory analysis is limited by the absence of historical period data in the input. However, the current revenue base of $8.25 billion and strong operating cash flow suggest a mature, cash-generative business model. The valuation multiples, including a P/E of 56.33 and EV/EBITDA of 43.82, imply that the market prices in significant future growth expectations relative to current earnings.

Risk assessment indicates medium liquidity risk and low dilution risk. A key flag notes that net cash is negative after subtracting total debt, which requires monitoring of debt service capabilities. The company’s share count remains stable with 401.6 million basic and diluted shares outstanding, supporting the low dilution rating.

Recent observations include analyst consensus with a mean price target of $307.63 and a mean recommendation of 1.83, indicating strong buy sentiment. News event logs show technical processing errors related to data re-driving, which do not reflect fundamental business events but indicate data pipeline issues rather than corporate actions.

Revenue is projected to grow 13.5% annually through 2026, reaching $8.25 billion from $4.97 billion in 2022.

Net income is expected to surge 55.5% annually, rising from $258 million in 2022 to $1.51 billion in 2026.

Analysts project 13.6% upside to a mean price target of $278.00, reflecting strong consensus buy ratings.

The company faces medium liquidity risk, indicating potential challenges in meeting short-term financial obligations despite strong profitability.

Debt-to-equity ratio of 0.53 is higher than the 0.27 cohort median, suggesting relatively higher leverage compared to peers.

Capital expenditure intensity is below the cohort median, which may limit future capacity expansion or innovation capabilities.

Revenue $2.31B, +19,1% YoY; Operating income +52,4% YoY.

• ▍Revenue $2.31B, +19,1% YoY
• ▍Operating income +52,4% YoY
• ▍Net income +68,6% YoY
• ▍Free cash flow +104,0% YoY
• ▍Net margin 25.1%

Revenue $2.17B, +14,7% YoY; Operating income +6,5% YoY.

• ▍Revenue $2.17B, +14,7% YoY
• ▍Operating income +6,5% YoY
• ▍Net income +18,5% YoY
• ▍Free cash flow +7,5% YoY
• ▍Net margin 17.2%

Revenue $2.09B, +13,8% YoY; Operating income +30,6% YoY.

• ▍Revenue $2.09B, +13,8% YoY
• ▍Operating income +30,6% YoY
• ▍Net income +16,0% YoY
• ▍Free cash flow +6,0% YoY
• ▍Net margin 18.4%

Revenue $2.05B, +9,2% YoY; Operating income +30,9% YoY.

• ▍Revenue $2.05B, +9,2% YoY
• ▍Operating income +30,9% YoY
• ▍Net income +53,0% YoY
• ▍Free cash flow +28,6% YoY
• ▍Net margin 19.8%

Revenue $1.94B; Operating income $494.0M.

• ▍Revenue $1.94B
• ▍Operating income $494.0M
• ▍Net margin 17.7%

Revenue $1.89B; Operating income $445.0M.

• ▍Revenue $1.89B
• ▍Operating income $445.0M
• ▍Net margin 16.6%

Revenue $1.83B; Operating income $415.0M.

• ▍Revenue $1.83B
• ▍Operating income $415.0M
• ▍Net margin 18.1%

Revenue $1.88B; Operating income $398.0M.

• ▍Revenue $1.88B
• ▍Operating income $398.0M
• ▍Net margin 14.1%

Revenue $8.25B, +11,1% YoY; Operating income +24,8% YoY.

• ▍Revenue $8.25B, +11,1% YoY
• ▍Operating income +24,8% YoY
• ▍Net income +30,6% YoY
• ▍Free cash flow +15,5% YoY
• ▍Net margin 18.3%

Revenue $7.43B, +11,9% YoY; Operating income +32,7% YoY.

• ▍Revenue $7.43B, +11,9% YoY
• ▍Operating income +32,7% YoY
• ▍Net income +51,0% YoY
• ▍Free cash flow +34,6% YoY
• ▍Net margin 15.5%

Revenue $6.64B, +17,2% YoY; Operating income +43,9% YoY.

• ▍Revenue $6.64B, +17,2% YoY
• ▍Operating income +43,9% YoY
• ▍Net income +63,1% YoY
• ▍Free cash flow +50,1% YoY
• ▍Net margin 11.5%

Revenue $5.66B, +13,9% YoY; Operating income +41,5% YoY.

• ▍Revenue $5.66B, +13,9% YoY
• ▍Operating income +41,5% YoY
• ▍Net income +81,8% YoY
• ▍Free cash flow +60,7% YoY
• ▍Net margin 8.3%