Howmet Aerospace Gains 1.05% as Trading Volume Plummets 31.08% to 236th in $0.39 Billion Liquidity Rankings

On August 18, 2025, Howmet Aerospace (HWM) closed with a 1.05% gain, despite a 31.08% drop in trading volume to $0.39 billion, ranking it 236th in market liquidity. The stock’s performance aligns with its strategic position in a recovering global aviation sector and strong operational metrics.

Howmet reported Q2 2025 revenue of $2.05 billion, reflecting 9% year-over-year growth, driven by 8% expansion in commercial aerospace and 21% defense segment growth. EBITDA margins reached 28.7%, a 300-basis-point increase, while free cash flow hit $344 million. The company’s focus on high-margin aerospace and industrial markets, including defense programs and gas turbines, underscores its diversified revenue streams.

Valuation concerns persist due to a P/E range of 51.16–62.59, yet this is justified by 7–8% projected earnings growth and a PEG ratio of 2.07. Howmet’s EV/EBITDA of 39.91x reflects its 33% EBITDA margins, well above the industry average of 7.42%, supported by long-term contracts and proprietary technologies. Share repurchases totaling $400 million and a 20% dividend hike highlight disciplined capital allocation, bolstering a balance sheet described as “the strongest in its history.”

Risks include cyclicality in commercial transportation, though this segment accounts for a minor portion of revenue. Defense and industrial growth, coupled with $1.797 billion in remaining buyback authority, mitigate macroeconomic volatility. Analysts project 2025 revenue of $8.13 billion and $3.60 in adjusted EPS, up from $3.48 in 2024.

The strategy of buying the top 500 stocks by daily trading volume and holding them for one day yielded a total profit of $2,340 from 2022 to the present, achieving a cumulative return of 23.4%. This indicates moderate performance for volume-based trading approaches.