Latest news with #HowmetAerospace
Globe and Mail
2 days ago
- Business
- Globe and Mail
Strength in Aerospace Technologies Unit Drives Honeywell: Can It Sustain?
Honeywell International Inc. HON is thriving on the back of persistent strength in its Aerospace Technologies segment. The company continues to witness strong momentum in its commercial aviation aftermarket business, driven by solid demand in the air transport market. In the second quarter of 2025, organic sales from its commercial aviation aftermarket business increased 7% year over year. Strength in HON's defense and space business, owing to stable U.S. and international defense spending volumes and sustained demand from the current geopolitical climate, has also been proving beneficial. In the second quarter, organic sales from its defense and space business surged 13% year over year. Driven by strength across these businesses, the Aerospace Technologies segment's organic sales grew 6% year over year in the quarter. In the quarters ahead, Honeywell expects the Aerospace Technologies segment to benefit from robust demand in commercial aviation, growth in air transport flight hours, higher shipset deliveries and strong defense spend volumes. For 2025, it expects sales in the Aerospace Technologies segment to be up in the high single digits, driven by continued momentum in both commercial aviation aftermarket and defense and space businesses. Business Performance of HON's Peers Among its major peers, Howmet Aerospace Inc. 's HWM defense aerospace market is playing an important role in driving its overall growth. In the second quarter of 2025, Howmet's revenues from the defense aerospace market jumped 21% year over year, which accounted for 17% of its total sales. The surge in revenues was fueled by robust demand for Howmet's engine spares, particularly related to the F-35 program and an increase in orders for new builds and legacy fighter jet parts. Another peer, GE Aerospace GE, is gaining from strong demand for LEAP, GEnx & GE9X engines and services within the Commercial Engines & Services business. The Commercial Engines & Services business' revenues and orders jumped 30% and 28%, respectively, on a year-over-year basis in the second quarter. GE Aerospace's growth is also supported by increasing air traffic, fleet renewal and expansion activities. During the second quarter of 2025, GE Aerospace inked a deal with Qatar Airways to supply more than 400 GE9X and GEnx engines. HON's Price Performance, Valuation and Estimates Shares of Honeywell have gained 11.7% in the past year compared with the industry 's growth of 3.2%. From a valuation standpoint, HON is trading at a forward price-to-earnings ratio of 20.08X, above the industry's average of 16.55X. Honeywell carries a Value Score of D. The Zacks Consensus Estimate for HON's 2025 earnings has been on the rise over the past 60 days. Honeywell currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Picks Stock Most Likely to "At Least Double" Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren't winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%. See Our Top Stock to Double (Plus 4 Runners Up) >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GE Aerospace (GE): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report Howmet Aerospace Inc. (HWM): Free Stock Analysis Report
Yahoo
5 days ago
- Business
- Yahoo
Are Wall Street Analysts Predicting Howmet Aerospace Stock Will Climb or Sink?
Howmet Aerospace Inc. (HWM) is a major global supplier of engineered aerospace and transportation components. Headquartered in Pittsburgh, Pennsylvania, it operates through four key segments: Engine Products, Fastening Systems, Engineered Structures, and Forged Wheels. With a market cap of $74.4 billion, the company provides critical components such as jet engine parts, structural aerospace assemblies, and forged aluminum wheels. Its global customer base spans commercial aviation, defense, and various industrial markets. Shares of HWM have substantially outperformed the broader market over the past 52 weeks. HWM has surged 94.2% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 14.5%. In 2025, shares of HWM are up 68.5%, compared to SPX's 6.1% rise on a YTD basis. More News from Barchart Find Winning Momentum Trades With This Moving Average Stock Screener Tariffs, Earnings and Other Can't Miss Items this Week This Blue-Chip Dividend Stock Is Stuck in the Tariff Crosshairs. Can Cost Cuts Save the Day? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Focusing more closely, Howmet Aerospace has also outpaced the SPDR S&P Aerospace & Defense ETF's (XAR) 44.6% return over the past 52 weeks and a 29.2% YTD return. On July 31, Howmet Aerospace shares fell 6.4% despite reporting strong fiscal Q2 2025 results. The company delivered record revenue of $2.05 billion, up 9% year-over-year, and exceeded expectations with adjusted EPS of $0.91, alongside notable margin expansion. It also generated $344 million in free cash flow, repurchased $275 million in stock, raised its dividend by 20%, and reduced debt. However, the market reaction was tempered by softness in the commercial transportation segment and concerns over the stock's elevated valuation. Analysts expect HWM's EPS to grow 36.4% year-over-year to $3.67 in the current year ending in December 2025. The company's earnings surprise history is auspicious, as it topped the consensus estimates in all of the last four quarters. Among the 23 analysts covering the stock, the consensus rating is a 'Strong Buy.' That's based on 18 'Strong Buy' ratings, one 'Moderate Buy,' and four 'Holds.' This configuration is more bullish than two months ago, with 17 'Strong Buy' ratings. On Jul. 17, Morgan Stanley (MS) analyst Kristine Liwag raised the price target on Howmet Aerospace from $170 to $210 while maintaining an 'Overweight' rating. The firm highlighted that aerospace stocks are trading at record-high multiples, reflecting the sector's resilience. Citing improving supply chains and steady air traffic demand, Morgan Stanley remains bullish on aerospace names with a balanced mix of aftermarket and original equipment exposure, positioning Howmet favorably within the industry. While HWM currently trades above its mean price target of $179.76, its Street-high price target of $220 implies a potential upside of 19.4% from the current price levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
6 days ago
- Business
- Forbes
6 Best Growth Stocks To Buy For August 2025
Bullish about stocks for the rest of 2025? You're not alone. Even as the August 1 start date for higher tariffs has arrived, the S&P 500, Dow Jones Industrial Average and Nasdaq Composite are trending up and flirting with new highs. Plus, analysts from Oppenheimer Asset Management, Goldman Sachs, Bank of America and RBC Capital Markets have raised their 2025 S&P 500 targets. When market optimism is high, growth stocks can pad your wealth quickly. Let's meet six top growth stocks that deserve a closer look. How These Growth Stocks Were Chosen The best growth stocks to buy for August are S&P 500 constituents that meet these criteria: The resulting stock list was ordered from highest to lowest EPS growth expectation, and the top six were chosen for inclusion. The 6 Best Growth Stocks To Buy For August 2025 The table below identifies six growth stocks that fit the parameters noted above. Two of these stocks are also featured in: best stocks for 2025. A review of each company follows. Metrics are sourced from company reports and unless noted otherwise. 1. Howmet Aerospace (HWM) Howmet Aerospace by the numbers: Howmet Aerospace provides jet engine components, fastening systems and structural components for aerospace and defense applications. The company also serves the commercial transportation industry with forged aluminum wheels. HWM stock is up 72.1% for the year, thanks to strong earnings and an upbeat outlook for 2025. Howmet specializes in parts that support lightweight, fuel-efficient designs for aircraft and commercial trucks. This is an advantage in the current environment. Airline manufacturing activity has been light in recent years and fleets are aging. As a result, demand is growing for low-maintenance, fuel-efficient aircraft. Howmet is relying on efficient operational execution to leverage the strong demand for its technology. This shows up in the financial statements as higher adjusted operating income margin and free cash flow. Some excess cash remains on the balance sheet, and some was used for debt repayment. Improved liquidity and lower debt have strengthened Howmet's financial position. Fitch recently confirmed this by raising the company's long-term issuer default rating from BBB to BBB+. After delivering a 46% increase to adjusted EPS in 2024, Howmet expects a 26.4% gain in 2025. 2. Nvidia (NVDA) Nvidia by the numbers: Nvidia designs high-powered GPUs and related hardware and software. The company earns most of its revenue from data center infrastructure products, including AI-capable GPUs. Since 2024, Nvidia has been the dominant market-share leader in the high-growth AI chips segment. NVDA stock is up 31.6% for the year and 1,601.8% over the past five years. Now the world's most valuable company, Nvidia has been delivering impressive quarter-over-quarter revenue gains since the second quarter of fiscal 2024—when AI chip demand began to skyrocket. Nvidia's market position, client list and technological prowess put the company in a class by itself. While anything's possible, it's hard to imagine a competitor taking a meaningful share of Nvidia's business. That's an enviable position because the demand outlook for AI infrastructure remains quite strong. Citigroup analyst Atif Malik recently projected the 2028 total addressable market for AI chips to reach $563 billion, up 13% from a prior outlook. And Google parent Alphabet has said it will invest $75 billion in its data centers this year. For the quarter ended in April 2025, Nvidia reported 69% revenue growth and 33% non-GAAP diluted EPS growth versus the prior-year quarter. 3. Motorola Solutions (MSI) Motorola Solutions by the numbers: Motorola provides video security, land mobile radio communication and command center solutions and technology. Most of the company's revenue, 70%, comes from public safety customers, including police forces and 911 centers. The remaining 30% is split among enterprise customers in various industries, including utilities, hospitality, manufacturing and retail. MSI stock is down 7.4% this year after two positive earnings surprises. Investors may have been put off by the company's conservative guidance for 2025's first and second quarters. A lower-growth expectation for two quarters isn't a dealbreaker for MSI because there are other things to like about this company: In the quarter ending May 1, 2025, MSI delivered 6% revenue growth and 13% non-GAAP EPS growth compared to the prior-year quarter. 4. Amazon (AMZN) Amazon by the numbers: Amazon is the world's largest e-commerce retailer and the global market-share leader in cloud computing services. E-commerce delivers most of Amazon's revenue, but the higher-margin AWS cloud computing business provides higher operating income. AMZN stock is up 6.1% for the year after recovering from a dip from March through May. Over the past 12 months, AMZN has gained 28%. Amazon's diversified business model has delivered revenue growth for years. Diluted EPS has been less consistent, but the 2024 result of $5.53 versus $2.90 in the prior year did make a statement. Based on announcements made in Amazon's first quarter report, the company is firing on multiple cylinders. It's using AI to enhance the shopping experience as it expands the product set and geographic reach. The company is also growing its entertainment business and audience, with successful launches of Reacher Season 3 and LeBron James' Mind the Game podcast. And AWS is broadening its AI and computing capabilities as it secures new contract wins with premier customers like Adobe and Nasdaq. In the quarter ending on May 1, Amazon increased net revenue 9% and diluted 47.5% compared to the year-ago quarter. 5. Mastercard Incorporated (MA) Mastercard Incorporated by the numbers: Mastercard processes digital payments in the U.S. and internationally. The per-transaction revenue model creates gains when spending across the Mastercard network increases or prices rise. Mastercard also has a growing services business encompassing security, marketing and other value-added services. MA stock is up 7.9% this year after two positive earnings surprises. Mastercard has the second-largest market share in U.S. credit card processing after Visa. According to Capital One Shopping, consumers charged $2.78 trillion to their Mastercards in 2024. Looking ahead, the outlook for consumer spending for 2025 is mixed, with some analysts predicting a slowdown in the second half. So far, Mastercard's results show no signs of a spending slowdown. The company's last earnings report noted higher gross dollar volume and higher cross-border volume. Mastercard has also made strides diversifying its business model with initiatives like: Mastercard's high operating margin in the upper 50s provides flexibility to pursue these and other growth initiatives. For the quarter ending on May 1, Mastercard reported constant-currency revenue and EPS growth of 17% and 15%, respectively. 6. Microsoft (MSFT) Disclosure: Author owns Microsoft stock. Microsoft by the numbers: Microsoft develops and maintains productivity software, sells cloud computing services and provides gaming hardware and content. MSFT stock is up 21.6% for the year after two positive earnings surprises and several analyst price target increases. Microsoft is the number two player in the cloud computing space, behind Amazon's AWS. Modern platforms provide the environment for AI application development, training and deployment—so this high-margin space benefits directly from the AI revolution. It's not surprising that Microsoft's ongoing investments in its cloud and AI offerings are driving profitable growth and substantial operating cash flow. The cash performance continues to provide the tech company with ample funding for growth initiatives and its modest dividend yield of 0.65%. (For higher-yielding dividend-payers, see best dividend stocks.) For the quarter ending on March 31, Microsoft reported constant-currency revenue and diluted EPS growth of 15% and 19%, respectively. Bottom Line High-flying growth stocks can produce quick gains in your portfolio—if you time things right. But because the stock market always has surprises on tap, make sure you're diversified and prepared financially for long holding periods. If you need help diversifying, see this list of best ETFs for 2025.
Yahoo
31-07-2025
- Business
- Yahoo
Howmet Aerospace Posts Record Profit, Raises 2025 Outlook
Howmet Aerospace Inc. (NYSE:HWM) announced its second-quarter 2025 financial results on Thursday. The company exceeded all guidance and strengthened its position in the aerospace and defense sectors. The company reported record revenue and profit, driven by robust demand, prompting an upward revision of its full-year 2025 outlook. Howmet Aerospace achieved record revenue of $2.05 billion, a 9% year-over-year increase, fueled by strong growth in commercial aerospace (up 8%), defense aerospace (up 21%), and industrial and other markets (up 17%), surpassing consensus estimates of $2.007 Income reached $407 million, or $1.00 per share. Adjusted earnings per share rose 36% year over year to 91 cents, beating the consensus estimate of 87 cents. Adjusted EBITDA (excluding special items) surged 22% to $589 million, with the margin expanding 300 basis points to 28.7%. Adjusted operating income margin expanded 330 bps to 25.3%. The company generated a record $344 million in free cash flow, marking its ninth consecutive positive quarter. Operating cash flow totaled $446 million, with a quarter-end cash balance of $546 million. In the second quarter, Engine Products led segment performance with a 13% year-over-year revenue increase to $1.1 billion, fueled by strength in aerospace, industrial gas turbines, and the oil and gas markets. The segment delivered a 20% rise in adjusted EBITDA, reaching $349 million, representing a healthy margin of 33.0%. Fastening Systems followed with a 9% revenue increase to $431 million, supported by robust demand in both commercial and defense aerospace. Adjusted EBITDA for the segment climbed 25% to $126 million, translating to a margin of 29.2%. Engineered Structures saw revenue grow 5% to $290 million, primarily driven by gains in defense aerospace. The segment's adjusted EBITDA surged 55% to $62 million, reflecting a margin of 21.4%, the strongest year-over-year EBITDA growth among all divisions. View more earnings on HWM Meanwhile, Forged Wheels was the only segment to post a decline in revenue, which edged down 1% to $276 million due to softer commercial transportation volumes. However, this was partially offset by favorable aluminum cost pass-throughs. Despite the top-line pressure, the segment's adjusted EBITDA rose 1% to $76 million, yielding a 27.5% margin. Howmet Aerospace repurchased $175 million of common stock in the quarter and an additional $100 million in July 2025. Year-to-date, $400 million in stock has been repurchased, with $1.797 billion remaining under authorization. The Board increased the quarterly common stock dividend by 20% to 12 cents per share, to be paid on August 25, 2025, to holders of record as of the close of business on August 8, 2025 The company also paid down $76 million of its U.S. dollar-denominated Term Loan, reducing annualized interest expense and bringing the net debt-to-LTM EBITDA ratio to a record low of 1.3x. Howmet Aerospace Executive Chairman and Chief Executive Officer John Plant commented, 'Turning to the outlook, the commercial aerospace market should continue to grow, driven by healthy passenger traffic, extraordinarily high OEM backlogs and the desire for new, fuel-efficient aircraft. We acknowledge positive signs for narrow body build rate increases, particularly on the Boeing 737MAX. Demand for engine spares also remains robust across all markets. The defense aerospace market continues to show strength that should carry through 2025.' 'Additionally, demand for industrial gas turbines fueled by significant data center expansion should remain strong for the balance of the year. The commercial transportation market remains weak. Taking these factors into account, the overall picture appears healthy, and we are increasing our full year 2025 guidance on all metrics.' Outlook For the third quarter, the company expects revenue between $2.02 billion and $2.04 billion versus the consensus of $2.027 billion, with adjusted earnings per share projected between 89 and 91 cents versus the consensus of 87 cents. Adjusted EBITDA is forecast between $575 million and $585 million, representing a margin of 28.5% to 28.7%. The company raised its full-year 2025 outlook, now expecting revenue of $8.08 billion to $8.18 billion, up $100 million from the prior baseline versus the consensus of $8.084 billion. Adjusted EPS is projected at $3.56 to $3.64, a 20-cent increase versus the consensus of $3.51. Adjusted EBITDA is guided between $2.3 billion and $2.34 billion, up $70 million, with a margin of approximately 28.5% to 28.6%, up 50 basis points. Free cash flow is now expected to range from $1.175 billion to $1.275 billion, an increase of $75 million. Price Action: HWM shares are trading lower by 6.53% to $179.75 at Thursday's last check. Read Next:Photo by T. Schneider via Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? This article Howmet Aerospace Posts Record Profit, Raises 2025 Outlook originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
31-07-2025
- Business
- Yahoo
Howmet raises 2025 forecast on robust aerospace demand
(Reuters) -Howmet Aerospace raised full-year forecast for profit and revenue on Thursday, betting on strong demand for its fasteners and engine components as plane makers ramp up jet production. Shares of the aerospace supplier, which counts Airbus and Boeing as its customers, jumped 3.5% in premarket trading. Growing demand for air travel has led airlines to order more new jets, prompting plane makers to accelerate production, benefiting suppliers such as Howmet. "We acknowledge positive signs for narrow-body build rate increases, particularly on the Boeing 737 MAX," Howmet CEO John Plant said in a statement. Boeing delivered 206 737 MAX jets through the first half of the year, compared with 135 a year earlier. Some prior delays as a result of supply-chain bottlenecks has also forced airlines to extend the lifespan of older aircraft, resulting in a surge in orders for aftermarket parts. However, U.S. President Donald Trump's broad tariffs on aluminum and steel, alongside levies on trading partners, have stressed the fragile aerospace supply chain and pushed up costs. Pennsylvania-based Howmet has said it intends to pass on inflated costs to customers through price hikes in an attempt to cushion the hit from tariffs. It expects 2025 revenue to be between $8.08 billion and $8.18 billion, compared with its earlier forecast of $7.88 billion and $8.18 billion. Howmet also raised its 2025 adjusted profit forecast to between $3.56 and $3.64 per share, compared with its previous range of $3.36 to $3.44 per share. Second-quarter revenue rose 9.2% to $2.05 billion, driven by an 8% increase in commercial aerospace sales. On an adjusted basis, the company earned 91 cents per share, up from 67 cents per share a year ago. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
