Howmet Aerospace Forecasts 31% EPS Growth on $2.14B Q4 Revenues
Howmet Aerospace projects Q4 EPS of $0.97 on $2.14 billion revenue, up 31.1% and 13.2% year-over-year, with commercial aerospace at $1.14 billion and defense at $365 million. The company has beaten consensus in four straight quarters (avg surprise 5.9%) and trades at a forward P/E of 49.7× versus 32.6× industry average.
1. Q4 Estimates and Growth
Howmet Aerospace is set to report Q4 2025 results on Feb. 12, with consensus estimates of $0.97 EPS on $2.14 billion revenue. These figures represent year-over-year increases of 31.1% in earnings and 13.2% in revenue, driven by robust aerospace demand.
2. Earnings Surprise Performance
The company has outpaced analyst forecasts in each of the past four quarters, delivering an average earnings surprise of 5.9%, including a 4.4% beat in the last period. Its Earnings ESP stands at +0.38%, indicating a continued likelihood of another upside surprise.
3. Segment Outlook
Commercial aerospace revenue is expected to reach $1.14 billion, up 14%, supported by strong OEM spending on wide-body aircraft, while defense aerospace is forecast at $365 million, up 19.7%, boosted by orders for engine spares on legacy fighters. The Forged Wheels segment faces a 6.4% revenue decline due to lower OEM builds and tariffs.
4. Valuation and Risks
Howmet trades at a forward P/E of 49.7×, well above the 32.6× industry average, which may pressure the stock if sentiment shifts. Ongoing global supply-chain disruptions in aerospace pose risks of delays and cost increases that could temper performance.