5 Must-Read Analyst Questions From Howmet’s Q4 Earnings Call

5 Must-Read Analyst Questions From Howmet’s Q4 Earnings Call

Adam Hejl

Thu, February 19, 2026 at 2:38 PM GMT+9 4 min read

In this article:

•                                       StockStory Top Pick 
  

  HWM

  -1.27%

Howmet’s fourth quarter saw a strong positive market reaction, reflecting performance that surpassed Wall Street’s revenue and profit expectations. Management attributed this to robust demand in commercial and defense aerospace, alongside accelerating growth in gas turbines. CEO John Plant highlighted the significant contribution of engine spares and the company’s ability to outpace broader market trends in premium product segments. Notably, commercial aerospace engine spares and gas turbine orders were major revenue drivers, supported by ongoing investments in manufacturing capacity and operational improvements.

Is now the time to buy HWM? Find out in our full research report (it’s free).

Howmet (HWM) Q4 CY2025 Highlights:

**Revenue:** $2.17 billion vs analyst estimates of $2.12 billion (14.6% year-on-year growth, 2.3% beat)

**Adjusted EPS:** $1.05 vs analyst estimates of $0.97 (8.7% beat)

**Adjusted EBITDA:** $653 million vs analyst estimates of $623.2 million (30.1% margin, 4.8% beat)

**Revenue Guidance for Q1 CY2026** is $2.24 billion at the midpoint, above analyst estimates of $2.16 billion

**Adjusted EPS guidance for the upcoming financial year 2026** is $4.45 at the midpoint, in line with analyst estimates

**EBITDA guidance for the upcoming financial year 2026** is $2.76 billion at the midpoint, in line with analyst expectations

**Operating Margin:** 22.6%, in line with the same quarter last year

**Market Capitalization:** $99.97 billion

While we enjoy listening to the management’s commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Howmet’s Q4 Earnings Call

**Douglas Harned (Bernstein)** asked about the long-term growth outlook for engine products across commercial, defense, and gas turbines. CEO John Plant explained that commercial aerospace and defense will remain robust, while gas turbines are entering a sustained growth phase due to data center power needs.

**Alex (JPMorgan, for Seth Seifman)** questioned the minimal improvement in full-year margin guidance despite Q1 strength. Plant responded that start-up friction from new capacity and acquisitions could weigh on margins, but emphasized the company’s “balanced view” given multiple ongoing initiatives.

**Robert Stallard (Vertical Research)** inquired about return on invested capital (ROIC) in the gas turbine segment. Plant stated that margins and ROIC are similar to aerospace, although large new capital deployments may temporarily lower returns until capacity is fully utilized.

**John Godyn (Citi)** probed capital allocation priorities between M&A and buybacks. Plant said Howmet is managing to fund both, noting that current leverage allows for ongoing share repurchases even as it completes sizable acquisitions.

**Sheila Kahyaoglu (Jefferies)** sought details on the market opportunities from recent acquisitions. Plant explained that the new deals expand Howmet’s fastener and fittings capabilities, enabling entry into adjacent aerospace and industrial markets.

 






Story Continues  

Catalysts in Upcoming Quarters

Looking ahead, the StockStory team will closely watch (1) the ramp-up and output of new manufacturing facilities, (2) integration progress and revenue contribution from recent acquisitions, and (3) sustained demand for spares and gas turbine products, particularly as utility and data center clients expand. Automation milestones and margin stabilization will also be key indicators of execution.

Howmet currently trades at $249.44, up from $230.85 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members).

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