We came across an upward thesis on Howmet Aerospace Inc. on X.com by Qualitybargain. In this article, we will summarize the thesis of Bulls on HWM. The action of Howmet Aerospace Inc. was negotiated at $ 178.98 in September 9. The monitoring and p / e of HWM were 52.33 and 41.15 respectively according to Yahoo Finance.
Jordan Tan / Shuttersock.com
The recent results of the T2 have highlighted both positive points and temporary opposite winds for the company, finally strengthening a history of long -term growth. Right up, spare income has increased by 40%, now representing 20% of total income, while engine products have experienced industrial acceleration drawn by O&G and IGT. The engineering structures have benefited from the consolidation of the footprint and the rationalization of the mixture of products, support margins and forged wheels are better than expected. The company has also increased CAPEX guidance for the financial year 25 of $ 40 million, reflecting increased reinvestment of the capacity sustained by the expected cash tax benefits.
Certain short-term pressures were obvious, including de-stocking in the commercial aerospace affecting the income of engineering structures and sequential reduction in fixing margins, largely due to the tariff trail. While the incremental margin of the T2 reached 61.3%, below the 66.9%model and market expectations of 69%, BPA income and beats indicate overall resilience. The guidelines suggest that the incremental margins of the mid -1940s for 2 hours FY25, reflecting a recovery of fasteners as the effects of synchronization and tariff are normalized.
In the future, the company’s investment in a new capacity, the effect of operational leverage of the productive productivity, the essential role in the supply chain of the hot LLP section and the early growth of the IGT Blades indicate a structurally improving margin profile. As construction rates are increasing, pricing benefits are continuing and revenue growth is accelerating, progressive margins could lasting the mid-40 year old by 26 to 28 exercises on high-turn income growth, above consensual expectations.
For investors, this positions action as a long -term convincing opportunity, with a potential to reach ~ 30x at the multiple front by Fy27, taken both by high -line acceleration and the expansion of the margin. Short short of short-term noise, the underlying fundamentals support a strong sustainable growth trajectory.
Previously, we have covered a Haussier thesis On Axon Enterprise, Inc. (AXON) by Radnourcapital in March 2025, which highlighted rapid income, solid business reservations and customer approval with net retention of 123%. The stock appreciated approximately 46.5% from our coverage while the thesis took place. The thesis is still located as anxon extends its market with drones and AI solutions. The quality of the quality shares a counter-contract, but emphasizes Howmet Aerospace’s capacity investments, operational execution and expansion of margins, highlighting long-term growth despite the short-term aerospace opposite.
