How Does Howmet Aerospace Make its Money?
Howmet Aerospace is a leading manufacturer of advanced engineered components for the aerospace and transportation industries, specializing in aero engine parts, structural components, and fastening systems. The company produces some of the most critical and difficult-to-manufacture parts in a jet engine — turbine blades, vanes, structural castings, and forged rings — using proprietary metallurgy and manufacturing processes. Howmet was formed from the 2020 separation of Arconic and is the legacy Alcoa aerospace parts business. The company’s products are on virtually every commercial aircraft engine platform (CFM LEAP, Pratt & Whitney GTF, GE9X, Rolls-Royce Trent) and are qualified through multi-year certification processes, creating enormous barriers to entry.
Howmet Aerospace (HWM) Business Model
Howmet Aerospace operates in the aerospace & defense sector. Below is a summary of Howmet Aerospace’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from Howmet Aerospace’s 2024 fiscal year filings with the SEC.
Howmet Aerospace Competitors
Howmet Aerospace’s key competitors and comparable public companies in the aerospace & defense sector include RTX Corporation, GE Aerospace, Boeing, and Northrop Grumman. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Howmet Aerospace stacks up by comparing their revenue breakdown, margins, and growth metrics.
Howmet Aerospace Competitors
Howmet Aerospace’s key competitors and comparable public companies in the aerospace & defense sector include RTX Corporation, GE Aerospace, Boeing, and Northrop Grumman. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Howmet Aerospace stacks up by comparing their revenue breakdown, margins, and growth metrics.
Howmet Aerospace Competitors
Howmet Aerospace’s key competitors and comparable public companies in the aerospace & defense sector include RTX Corporation, GE Aerospace, Boeing, and Northrop Grumman. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how Howmet Aerospace stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Engine Products (Turbine Blades, Vanes, Structural Castings) | $3,400 | $3,000 | +13.3% |
| Fastening Systems (Aerospace Fasteners, Latches) | $1,700 | $1,500 | +13.3% |
| Engineered Structures (Titanium & Aluminum Forgings) | $1,100 | $1,000 | +10.0% |
| Forged Wheels (Commercial Trucks) | $1,200 | $1,100 | +9.1% |
| Total Revenue | $7,400 | $6,600 | +12.1% |
Engine Products (Turbine Blades, Vanes, Structural Castings) — 46% of Revenue
Fastening Systems (Aerospace Fasteners, Latches) — 23% of Revenue
Engineered Structures (Titanium & Aluminum Forgings) — 15% of Revenue
Forged Wheels (Commercial Trucks) — 16% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $7,400 | $6,600 |
| Cost of Revenue | $4,800 | $4,500 |
| Gross Profit | $2,600 | $2,100 |
| Operating Expenses | $800 | $750 |
| Operating Income | $1,800 | $1,350 |
| Net Income | $1,200 | $900 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 35.1%
- Operating Margin: 24.3%
- Revenue Growth: 12.1%
Is Howmet Aerospace Profitable?
Yes, Howmet Aerospace is profitable. The company reported net income of $1,200 on total revenue of $7,400. With an operating margin of 24.3%, Howmet Aerospace demonstrates solid profitability for the aerospace & defense sector. The gross margin of 35.1% reflects Howmet Aerospace’s pricing power and cost structure.
What to Watch
- Commercial aerospace OEM production rate increases at Boeing and Airbus
- Aftermarket engine parts demand as global flight hours exceed pre-COVID levels
- Margin expansion from operating leverage and pricing on long-term agreements
- Defense budget growth and opportunities in next-gen engine programs
Howmet Aerospace (HWM) Financial Summary
Howmet Aerospace (HWM) is an aerospace & defense company that generated $7,400 in total revenue in fiscal year 2024. Revenue grew 12.1% year-over-year. The company earned $1,200 in net income, making it profitable. For a deeper look at Howmet Aerospace’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.