# Howmet Aerospace (HWM) Forecast Calculator

Interactive five-year financial forecast and DCF for Howmet Aerospace. Adjust revenue growth, margins, capex, and WACC to update revenue, free cash flow, and enterprise value.

- Canonical: https://finamodel.com/companies/howmet-aerospace/forecast
- Industry: Industrials
- Forecast start year: 2026

## Historical data

| Year | Revenue | Free cash flow | EBITDA | Net income |
|---:|---:|---:|---:|---:|
| 2021 | 7098000000 | -180000000 | 1115000000 | 470000000 |
| 2022 | 5259000000 | -258000000 | 964000000 | 261000000 |
| 2023 | 4972000000 | 250000000 | 1018000000 | 258000000 |
| 2024 | 5663000000 | 540000000 | 1184000000 | 469000000 |
| 2025 | 6640000000 | 682000000 | 1475000000 | 765000000 |

## Frequently asked questions

### What does Howmet Aerospace do and what industries does it serve?

Howmet Aerospace manufactures engineered metal products, specializing in jet engine components, aerospace fastening systems, and titanium structural parts. The company primarily serves the aerospace and commercial transportation industries, holding a dominant competitive position as a sole or dual source supplier for critical components.

### What are the primary revenue drivers for Howmet Aerospace's Engine Products segment?

Revenue for the Engine Products segment is driven by commercial OEM build rates, aftermarket spares growth from the installed base, and defense volumes. Growth is particularly influenced by LEAP and GTF engine production and highly profitable aftermarket spares, which approach 20% of total company revenue.

### What is Howmet Aerospace's capital expenditure strategy and typical capex as a percentage of revenue?

Howmet Aerospace's capital expenditure is approximately 4% to 5% of revenue, with roughly 60% allocated to growth capex and 40% to maintenance. Major programs focus on expanding production capacity for engine airfoils, supported by long-term customer agreements.

### What are the key assumptions for revenue growth and operating margins in a financial model for Howmet Aerospace?

A financial model for Howmet Aerospace incorporates assumptions about revenue growth, driven by factors like commercial aerospace build rates and aftermarket spares. It also assumes operating margin expansion, reflecting the company's strong pricing power, particularly in its profitable spares business.

### What are the main inputs for valuing Howmet Aerospace using a Discounted Cash Flow (DCF) model?

A DCF model for Howmet Aerospace primarily relies on projected future cash flows, which are influenced by commercial aerospace build rates, aftermarket spares growth, and operating margin expansion. These projections help an equity research analyst determine an equity valuation and price target.

### Can I download an Excel financial model for Howmet Aerospace and what is its forecast horizon?

Yes, an Excel financial model for Howmet Aerospace is available for download. This model projects the company's future cash flows and equity valuation with a forecast horizon from FY2026 to FY2030.