Howmet Aerospace recently declared a regular cash dividend and reported strong fourth-quarter earnings, with sales rising to $1,891 million and net income increasing to $314 million. Despite these positive developments, the company's stock price remained flat over the last quarter. During this period, the broader market faced significant turmoil, including a 9.5% drop in major indexes due to global trade tensions and tariff announcements. Howmet's completed share buyback program may have been overshadowed by these broader economic pressures, which likely influenced investor behavior and kept share prices steady despite the company’s solid financial performance.

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Over the past five years, Howmet Aerospace's total shareholder returns surged to a very large percentage, highlighting its impressive long-term growth. This dramatic increase in value reflects several key factors, including strategic investments and operational improvements. The company's proactive share repurchase program, which saw over 28 million shares repurchased for US$1.35 billion since August 2021, played a substantial role in this growth by enhancing shareholder value through reduced share count and increased earnings per share.

Further supporting this stellar performance was the company's robust expansion in the aerospace and engine spares segments. In 2024, Engine Spares revenue grew around 25%, significantly bolstering Howmet's top line. Additionally, strategic investments in industrial gas turbine capacity have opened new avenues for revenue growth. Howmet Aerospace's return also outpaced both the broader market and the US Aerospace & Defense industry over the past year, reinforcing its strong position in the sector.

Our expertly prepared valuation report Howmet Aerospace implies its share price may be lower than expected.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:HWM.

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