Howmet Aerospace Advances Growth Strategy with Major Acquisition and Shareholder Returns

Howmet Aerospace US4432011082

Howmet Aerospace is moving forward with its planned multi-billion dollar acquisition of Consolidated Aerospace Manufacturing (CAM), a strategic move designed to enhance its product offerings and drive future revenue. The company is simultaneously reinforcing its commitment to shareholder value through a consistent dividend policy.

The aerospace supplier announced the all-cash $1.8 billion purchase of CAM in December 2025, with the transaction expected to finalize in the first half of 2026. Howmet projects that the newly acquired unit will generate sales in the range of $485 to $495 million during the 2026 fiscal year. CAM is also anticipated to deliver an adjusted EBITDA margin exceeding 20% before any synergies are realized. This acquisition is central to Howmet's strategy of broadening its portfolio of high-technology, mission-critical fastening solutions for the aerospace and defense industries while expanding its customer relationships.

In a separate announcement on January 20, 2026, the company's board declared a regular quarterly cash dividend of $0.12 per share. The payment will be distributed on February 25 to shareholders of record as of February 6.

Market Performance and Institutional Activity

Howmet Aerospace continues to receive favorable coverage from equity researchers, who maintain a consensus "Moderate Buy" recommendation on the stock. Recent analyst actions include Citigroup raising its price target to $255 from $246 and reiterating a "Buy" rating. Similarly, Bank of America increased its target price to $250 from $215 in November 2025.

The stock is also seeing notable movement among major institutional investors. Activity in the third quarter of 2025 saw UniSuper Management Pty Ltd boost its stake by 15.8%. More recently, the Goldman Sachs Strategic Factor Allocation Fund established a new position in Howmet shares as of January 24. Conversely, Strs Ohio reduced its holdings by 42.2% during the same period.

The company's operational performance remains solid, supported by robust demand in the defense and aerospace aftermarket, including parts for engines used in the F-35 program. This strength has helped offset softer conditions in the commercial transport sector, where revenues declined by 3% year-over-year in the third quarter of 2025. Overall, Howmet surpassed market expectations for Q3 2025, reporting earnings per share of $0.95 on revenue of $2.09 billion.

Investors are awaiting the company's fourth-quarter and full-year 2025 results, scheduled for release on February 12, 2026. This report will include an updated financial outlook for 2026, providing further clarity on the anticipated contribution from the CAM acquisition.