Jefferies Backs Howmet (HWM) Acquisition, Sees EPS Lift into 2026

Howmet Aerospace Inc. (NYSE:HWM) is included among the 20 Best Performing Dividend Stocks in 2025.

On December 22, Jefferies analyst Sheila Kahyaoglu said Howmet Aerospace Inc. (NYSE:HWM) is acquiring Consolidated Aerospace Manufacturing from Stanley Black & Decker in an all-cash deal valued at $1.8 billion. Jefferies assumes the transaction closes around mid-Q2, with roughly half of the purchase funded through new debt. Under those assumptions, the firm estimates the deal could add about 2% to 2026 EPS and more than 3% in the first full year after closing. Management expects Consolidated Aerospace Manufacturing to generate FY26 revenue between $485 million and $495 million. That compares with Stanley Black & Decker’s outlook of $405 million to $415 million in FY25 sales. Jefferies notes the gap implies close to 20% year-over-year growth. The firm maintains a Buy rating on Howmet and a $245 price target.

Howmet Aerospace Inc. (NYSE:HWM) confirmed the transaction the same day, saying it will buy aircraft fastener maker Consolidated Aerospace Manufacturing for about $1.8 billion in cash.

Earlier, the company also lifted its 2025 revenue forecast to a range of $8.18 billion to $8.2 billion, up from its prior outlook of $8.08 billion to $8.18 billion. Profit expectations also moved higher. Howmet now sees adjusted earnings of $3.66 to $3.68 per share, compared with $3.56 to $3.64 previously. For the third quarter, Howmet Aerospace Inc. (NYSE:HWM) reported adjusted earnings of $0.95 per share, ahead of Wall Street’s $0.91 estimate. Revenue reached $2.09 billion, topping the $2.04 billion analysts were expecting.

Howmet Aerospace Inc. (NYSE:HWM) produces advanced, engineered components used across the aerospace, defense, and commercial transportation markets.

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