Howmet Aerospace Shares Slide as 36% Volume Drop Affects Top 500 Ranking Amid Earnings Optimism

Howmet Aerospace (HWM) closed August 14 with a 0.46% decline, trading at $176.80 as daily trading volume fell to $0.35 billion, a 36.53% drop from the prior day’s activity. The stock remains 84.9% above its 12-month low but trades below its 52-week high of $193.26.

Commercial aerospace demand continues to drive the company’s performance, with second-quarter revenues up 8% year-over-year, accounting for 52% of total business. Rising air travel and demand for fuel-efficient aircraft have boosted OEM spending and spare parts requirements. Defense aerospace also contributed 17% of Q2 revenue, up 21% annually, supported by the House’s $831.5 billion FY2026 Defense Appropriations Act, which could expand government contracts for HWM.

Shareholder returns remain a focus, with $83 million in dividends and $300 million in buybacks in 2025’s first half. The company’s liquidity position remains strong, with $545 million in cash and receivables and $478 million in free cash flow generated in the first six months of 2025. Analysts have raised 2025 earnings estimates to $3.57 per share, reflecting 32.7% year-over-year growth expectations.

Despite robust fundamentals, valuation concerns persist. HWM trades at a forward P/E of 44.09X, well above the industry average of 27.88X, making it vulnerable to market sentiment shifts. Peers like GE Aerospace and RTX Corp. trade at lower multiples, highlighting relative premium pricing.

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