Why Howmet Aerospace Stock Jumped 70%?
Howmet Aerospace (HWM)’s stock soared 69%, fueled by a sharp rise in profits and a market re-rating. Behind the surge: stellar Q3 results, steady earnings, an aerospace boom, upgraded credit ratings, and shareholder rewards—all setting the stage for a remarkable rally. Let’s unpack the story.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 11242024 | 11242025 | Change | |
|---|---|---|---|
| Stock Price ($) | 118.1 | 200.1 | 69.4% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 7,270.0 | 7,721.0 | 6.2% |
| Net Income Margin (%) | 14.8% | 18.1% | 22.1% |
| P/E Multiple | 44.7 | 57.9 | 29.3% |
| Shares Outstanding (Mil) | 408.0 | 404.0 | 1.0% |
| Cumulative Contribution | 69.4% |
So what is happening here? The stock surged 69%, driven by a 6.2% revenue increase, a 22% boost in net margin, and a 29% rise in its P/E multiple. Let’s dive into the events behind these shifts.
Here Is Why Howmet Aerospace Stock Moved
- The Next Big Rally in Ford Motor Stock Could Start Like This
- The Risk Factors to Watch Out For in NVIDIA Stock
- Intuitive Surgical Stock Now 16% Cheaper, Time To Buy
- AT&T Stock Pays Out $85 Bil – Investors Take Note
- Intel Stock Pays Out $92 Bil – Investors Take Note
- Comcast Stock Capital Return Hits $44 Bil
- Strong Q3 2025 Results: Record revenue $2.09B (+14% YoY), EPS $0.95 beat estimates, driven by commercial aerospace.
- Consistent Earnings: Q4 2024, Q1, Q2 2025 results consistently beat estimates with strong growth.
- Aerospace Market Boom: Strong demand in commercial and defense aerospace fueled revenue growth across segments.
- Shareholder Returns: Significant share repurchases and increased dividends boosted investor confidence.
- Credit Rating Upgrades: S&P and Fitch upgraded ratings, reflecting strong financial health and debt reduction.
Our Current Assesment Of HWM Stock
Opinion: We currently find HWM stock unattractive. Why so? Have a look at the full story. Read Buy or Sell HWM Stock to see what drives our current opinion.
Risk: A solid way to gauge risk with HWM is to check how much it has fallen in major market selloffs. It dropped nearly 88% in the Global Financial Crisis, about 92% in the 2018 correction, and around 65% during the Covid pandemic. Even the more recent inflation shock led to a 23% dip. The numbers show that despite an otherwise strong outlook, HWM can suffer steep losses when markets turn. Quality matters, but pullbacks hit hard across the board.
HWM stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.