Is HWM a good stock to buy? We came across a bullish thesis on Howmet Aerospace Inc. on MTC’s Substack. In this article, we will summarize the bulls’ thesis on HWM. Howmet Aerospace Inc.’s share was trading at $240.24 as of March 17th. HWM’s trailing and forward P/E were 64.89 and 53.48, respectively according to Yahoo Finance.
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Howmet Aerospace Inc. provides advanced engineered solutions for the aerospace and transportation industries in the United States and internationally. HWM emerges as a high-quality aerospace and defense supplier positioned at the center of long-term aviation and defense growth, combining a century-old industrial heritage with a modern, high-margin operating model.
Formed in 2020 from a broader industrial transformation, the company operates across four core segments—engine products, fastening systems, engineered structures, and forged wheels—each holding strong market positions and supplying mission-critical components used across commercial aircraft, defense platforms, and heavy-duty vehicles.
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The business has demonstrated exceptional financial performance, with Q3 2025 revenue of $2.09 billion growing 14% year-over-year, operating margins expanding to 25.9%, and adjusted EBITDA rising 26%, reflecting strong pricing power, operational efficiency, and favorable end-market demand. Growth is being driven by both commercial aerospace, which is benefiting from production backlogs and fleet modernization, and defense aerospace, where revenues grew 24% amid increasing global military spending and improving program dynamics such as the F-35.
The company’s margin expansion highlights its differentiated positioning as a supplier of highly engineered, hard-to-replace components, enabling consistent profitability gains. Capital allocation remains disciplined, with ongoing share buybacks, debt reduction, and strategic acquisitions, including the planned $1.8 billion purchase of Consolidated Aerospace Manufacturing, reinforcing its growth outlook.
Despite a 703% stock appreciation over five years, the company continues to benefit from strong secular tailwinds, including rising air travel demand, fuel efficiency requirements, and defense modernization. With ~10% revenue growth expected in 2026 and continued margin strength, Howmet offers investors leveraged exposure to aerospace recovery through a resilient, cash-generative, and structurally advantaged business model.
Previously, we covered a bullish thesis on TransDigm Group Incorporated (TDG) by Summit Stocks in May 2025, which highlighted the company’s proprietary aerospace components, strong pricing power, high-margin aftermarket exposure, and disciplined acquisition-driven growth strategy. TDG’s stock price has depreciated by approximately 12.28% since our coverage on multiple compression and investor concern around softer OEM trends and some near-term margin dilution. MTC shares a similar view but emphasizes Howmet Aerospace’s margin expansion and diversified aerospace exposure.
Howmet Aerospace Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 71 hedge fund portfolios held HWM at the end of the fourth quarter which was 57 in the previous quarter. While we acknowledge the risk and potential of HWM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than HWM and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
