Howmet Aerospace Inc. (HWM) exhibits rare alignment of growth engines, strong incremental margins, and rising spare parts demand, supported by multi-year visibility from defense, aerospace, and data center gas turbine demand. Despite a demanding valuation, its durable growth, backlog extending to 2030, and expanding turbine exposure justify a “Buy” rating for risk-aware investors. The company maintains a conservative balance sheet and disciplined capital allocation.
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Howmet Aerospace: Premium Valuation Justified By Rare Multi-Year Growth (NYSE:HWM)
Howmet Aerospace Inc. (HWM) exhibits rare alignment of growth engines, strong incremental margins, and rising spare parts demand, supported by multi-year visibility from defense, aerospace, and data center gas turbine demand. Despite a demanding valuation, its durable growth, backlog extending to 2030, and expanding turbine exposure justify a “Buy” rating for risk-aware investors. The company maintains a conservative balance sheet and disciplined capital allocation.