Howmet Aerospace: Flying Too High, Some Turbulence To Be Expected

The Value InvestorInvesting Group LeaderFollow5ShareSavePlay(8min)CommentsSummaryHowmet Aerospace announced a $1.8 billion cash acquisition of Consolidated Aerospace Manufacturing, expanding its aerospace and defense portfolio.The deal is expected to contribute $490 million in 2026 sales and over 20% EBITDA margin pre-synergies, implying EBITDA of around $100 million.Acquisition multiples are about 3.6x sales, 18x EBITDA, and 13x EBITDA post-synergies—reasonable within aerospace sector valuations.In 2025, Howmet reported 11% revenue growth to $8.25 billion and net earnings of $1.51 billion ($3.71/share), reflecting strong profitability.Looking for more investing ideas like this one? Get them exclusively at Value In Corporate Events. Learn More »EXTREME-PHOTOGRAPHER/E+ via Getty Images Shares of Howmet Aerospace (HWM) have been on a huge momentum run in recent times, with volatility being on the increase as of late. Shares are down 15% from the highs, but continue to trade at real elevated multiples, following strongThis article was written byThe Value Investor27.69K FollowersFollowThe Value Investor has a Master of Science with specialization in financial markets and a decade of experience tracking companies via catalytic company events. As the leader of the investing group Value In Corporate Events they provide members with opportunities to capitalize on IPOs, mergers & acquisitions, earnings reports and changes in corporate capital allocation. Coverage includes 10 major events a month with an eye towards finding the best opportunities. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.