Howmet Aerospace Prices $1.2 Billion Debt, UBS Raises Target to $260
Howmet Aerospace priced $1.2 billion of debt—$400 million of 3.750% 2028 notes, $300 million of 3.900% 2029 notes and $500 million of 4.750% 2036 notes—to fund its $1.8 billion acquisition of Consolidated Aerospace Manufacturing. UBS raised Howmet’s price target to $260 from $228, citing EBITDA margins driven by pricing.
1. Debt Offering and Acquisition Financing
Howmet Aerospace announced pricing of a $1.2 billion underwritten public offering comprising $400 million of 3.750% notes due 2028, $300 million of 3.900% notes due 2029 and $500 million of 4.750% notes due 2036. The company intends to combine net proceeds with $600 million of borrowings under its commercial paper program and cash on hand to fund its $1.8 billion acquisition of Consolidated Aerospace Manufacturing, expected to close on March 3, 2026, subject to customary closing conditions.
2. UBS Price Target Revision
UBS raised its price target on Howmet Aerospace to $260 from $228 while maintaining a Neutral rating. The firm highlighted Howmet’s record EBITDA margins supported by pricing strength, increased content per aircraft and volume growth, and noted that the current 36× projected 2026 EBITDA multiple already reflects much of the upside relative to peers.