Is the business good?
How good a business is HWM?
Howmet Aerospace earns 20% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
20%
Return on invested capital · cost of capital 9.0% · 11 points above what the capital costs: growth creates value
- Operating margin
- 27%
Operating margin · Aerospace & Defense median 9.6% · 12 months to Q2 2026
- Cash conversion
- 0.96×
Cash conversion · 0.73× a year ago · some of the reported profit has not turned into cash yet
- Share count, year on year
- −0.99%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 12% |
| FY2021 | 15% |
| FY2022 | 16% |
| FY2023 | 18% |
| FY2024 | 22% |
| FY2025 | 25% |
Details›
- Gross margin12 months to Q2 2026
- 36%
- Operating margin12 months to Q2 2026
- 27%
- Net margin12 months to Q2 2026
- 21%
- Free cash flow margin
- 20%
- R&D as % of revenue
- 0.41%
- Revenue, trailing twelve months
- $9.12B
- Free cash flow, trailing twelve months
- $1.79B
- Net income, trailing twelve months
- $1.87B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 20%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Aerospace & Defense
Ranks #2 of 48 by Smart Score