HWMMEDIUM SIGNALOPPORTUNITY10-K

HWM announced a $1.8 billion acquisition of Consolidated Aerospace Manufacturing while delivering strong financial performance with 31% net income growth and robust cash generation.

The CAM acquisition represents a significant strategic expansion that should strengthen HWM's aerospace manufacturing capabilities, though at a substantial cost requiring careful integration execution. The strong underlying financial performance provides a solid foundation for funding this growth initiative while continuing aggressive capital returns to shareholders.

Comparing 2026-02-12 vs 2025-02-14View on EDGAR →
FINANCIAL ANALYSIS

HWM delivered exceptionally strong financial performance across all metrics, with net income growing 31% to $1.5B and operating cash flow surging 45% to $1.9B, demonstrating robust operational execution. The company simultaneously increased capital investments by 41% and share buybacks by 40% to $700M, while building cash reserves to $742M and growing stockholders' equity to $5.4B. This combination of strong earnings growth, increased investments, and enhanced capital returns signals a company generating substantial cash flow while positioning for future growth through both organic investments and the pending acquisition.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
+45.1%
$1.3B→$1.9B

Operating cash flow surged 45.1% — exceptional cash generation, highest quality earnings signal.

Capital Expenditure
Cash Flow
+41.1%
$321.0M→$453.0M

Capital expenditure jumped 41.1% — major investment cycle underway; assess returns on deployment.

Share Buybacks
Cash Flow
+40%
$500.0M→$700.0M

Share repurchases increased 40% — management returning capital, signals confidence in intrinsic value.

Cash & Equivalents
Balance Sheet
+31.6%
$564.0M→$742.0M

Cash position surged 31.6% — strong cash generation or capital raise providing significant financial cushion.

Net Income
P&L
+30.6%
$1.2B→$1.5B

Net income grew 30.6% — bottom-line growth signals improving overall business health.

Operating Income
P&L
+25.3%
$1.6B→$2.0B

Operating income improving — cost discipline or growing revenue base absorbing fixed costs.

Stockholders Equity
Balance Sheet
+17.5%
$4.6B→$5.4B

Equity base grew 17.5% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Current Liabilities
Balance Sheet
+14.3%
$1.5B→$1.8B

Current liabilities rose 14.3% — increased short-term obligations, watch current ratio.

Accounts Receivable
Balance Sheet
+13.1%
$689.0M→$779.0M

Receivables grew 13.1% — monitor days sales outstanding for collection efficiency.

Current Assets
Balance Sheet
+12.4%
$3.4B→$3.8B

Current assets grew 12.4% — improving short-term liquidity or inventory/receivables build.

LANGUAGE CHANGES
NEW — 2026-02-12
PRIOR — 2025-02-14
ADDED
As of February 9, 2026, there were 400,940,063 shares of common stock, par value $1.00 per share, of the registrant outstanding.
and the expected financing, benefits and timing of such planned acquisition.
Recent Developments Consolidated Aerospace Manufacturing, LLC Acquisition Transaction .
On December 22, 2025, the Company entered into an agreement with Stanley Black Decker, Inc.
( Stanley Black Decker ) to acquire Consolidated Aerospace Manufacturing, LLC ( CAM ), a wholly owned subsidiary of Stanley Black Decker, for a cash purchase price of approximately $1.8 billion (the Proposed CAM Acquisition ).
The Proposed CAM Acquisition is expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals.
See also Liquidity and Capital Resources Planned Financing for the Proposed CAM Acquisition in Part II, Item 7 (Management s Discussion and Analysis of Financial Condition and Results of Operations).
On February 6, 2026, the Company acquired Brunner Manufacturing Co.
Inc., a small privately-held manufacturer of high-quality fastener products located in the U.S., for an all-cash purchase price (the Brunner acquisition ).
Based upon the country where the point of shipment occurred, North America and Europe generated 72% and 22%, respectively, of Howmet s sales in 2025.
REMOVED
As of February 10, 2025, there were 405,022,519 shares of common stock, par value $1.00 per share, of the registrant outstanding.
All statements that reflect Howmet s expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements, forecasts and outlook relating to the condition of end markets; future financial results, operating performance, or estimated or expected future capital expenditures; future strategic actions; Howmet's strategies, outlook, and business and financial prospects; and any future dividends, debt issuances, debt reduction and repurchases of its common stock.
Based upon the country where the point of shipment occurred, North America and Europe generated 71% and 23%, respectively, of Howmet s sales in 2024.
Howmet s largest market is aerospace, which represented approximately 68% of the Company s revenue in 2024.
The commercial transportation market represented approximately 17% of the Company s revenue in 2024.
Industrial and other markets include industrial gas turbines, oil and gas, and other industrials, which represented approximately 15% of the Company s revenue in 2024.
Engine Products principally serves the commercial and defense aerospace, industrial gas turbine, and oil and gas markets.
Engineered Structures Engineered Structures produces titanium ingots and mill products for aerospace and defense applications and is vertically integrated to produce titanium forgings, titanium extrusions, and machining services for airframe, wing, aero-engine, and landing gear components.
Sales by Market and Significant Customer Revenue Sales by market for the years ended December 31, 2024, 2023, and 2022, were: For the Year Ended December 31, 2024 2023 2022 Aerospace - Commercial 52 % 49 % 46 % Aerospace - Defense 16 % 15 % 16 % Commercial Transportation 17 % 21 % 23 % Industrial and Other (1) 15 % 15 % 15 % (1) Industrial and Other comprise industrial gas turbine (approximately 45%), general industrial (approximately 30%), and oil and gas (approximately 25%).
On April 2, 2024, General Electric Company, one of our largest customers, completed the spin-off of its energy-focused business into GE Vernova, a new publicly traded company.
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