Howmet Aerospace Inc.
HWM Industrials Aerospace & Defense
Howmet Aerospace Inc.’s revenue for fiscal 2025 (year ended December 2025) was $8.3 billion, up 11.1% from fiscal 2024. In the quarter to June 2026, revenue grew 24.1%, EPS grew 31.7%, free cash flow grew 38.0% and total debt rose 24.3%, each against the same quarter a year earlier. Member of the S&P 500; dividend growth for five consecutive years, revenue growth for three, operating cash flow growth for five.
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Howmet Aerospace Inc. (HWM) Altman Z-score
Howmet Aerospace Inc.'s Altman Z-score for fiscal 2025 is 10.60, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 10.60 | 4.32 |
| FY2024 | 6.28 | 2.76 |
| FY2023 | 3.52 | 0.86 |
| FY2022 | 2.66 | 0.45 |
| FY2021 | 2.21 | 0.37 |
| FY2020 | 1.84 | 0.72 |
| FY2019 | 1.13 | 0.17 |
| FY2018 | 0.96 | (0.37) |
| FY2017 | 1.32 | 0.18 |
| FY2016 | 1.14 | — |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.18 | — | 0.22 | |
| Retained earnings / total assets | 0.37 | — | 0.51 | |
| EBIT / total assets | 0.18 | — | 0.60 | |
| Market value of equity / total liabilities | 14.22 | — | 8.53 | |
| Sales / total assets | 0.74 | — | 0.74 | |
| Altman Z-score | Safe zone | 10.60 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 4.57 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| RKLB Rocket Lab Corporation compare | 36.7× |
| HWM Howmet Aerospace Inc. | 10.6× |
| HEI Heico Corporation compare | 8.2× |
| GD General Dynamics Corporation compare | 4.2× |
| LMT Lockheed Martin Corporation compare | 3.3× |
| NOC Northrop Grumman Corporation compare | 3.0× |
| LHX L3Harris Technologies Inc compare | 2.4× |
| TDG Transdigm Group Incorporated compare | 2.0× |
| BA The Boeing Company compare | 1.5× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets
More on HWM
- Revenue
- Net income
- EPS (diluted)
- EBITDA
- Free cash flow
- Operating cash flow
- Gross margin
- Operating margin
- Net margin
- Free cash flow margin
- P/E ratio
- P/S ratio
- P/B ratio
- Price to free cash flow
- EV/EBITDA
- EV/Sales
- EV/FCF
- Return on equity
- Return on assets
- Return on invested capital
- Debt to equity
- Current ratio
- Total debt
- Shares outstanding
- Book value per share
- Revenue growth
- Piotroski F-score
- Beneish M-score
- The full statement