HWMHowmet Aerospace Inc.

Rolling Drawing & Extruding Of Nonferrous Metals

Revenue: $8.3B; 11% YoY
Operating margin: 24.8%; 13% YoY
EBITDA: $2.3B; 22% YoY
Market cap: $79.3B
Employees: 25,430; $324K revenue each
Net debt / EBITDA: 1.7×; $3.9B net debt
AI in 10-K: 2.3; mentions per 10K words

Takeover score 3 of 13

Fixable underperformance 1 of 7

TSR below peersNo
1 of 5 years
3+ of last 5 years
High CEO pay despite TSRNo
—
Median CEO pay ≥ $15M while TSR trails
Earnings not backed by cashNo
125% of net income
Cash flow under 80% of net income
Dilutive SBCNo
1% of revenue
Over 10% of revenue
Payouts exceed cash flowNo
49% of cash flow
Buybacks + dividends over cash flow
Goodwill-heavyNo
38% of assets
Over 40% of assets
Shareholder dissentYes
71% lowest support
Any vote under 80% support

Buyer economics 1 of 4

Low revenue per employeeYes
$324K · 13th pct
Bottom quartile of its SIC industry
Quiet on AINo
2.3 per 10K words · 60th pct
Bottom quartile of AI mentions in 10-Ks
Net cashNo
1.7× EBITDA net debt
More cash than debt, positive EBITDA
Buyout-sizedNo
$79.3B market cap
Market cap $500M–$5B

Catalysts 1 of 2

Active 13DNo
0 filings
Active-intent 13D in 18 months
Net insider sellingYes
−$23M net
Net sales over $10M in 12 months

Financials

Metric	FY2021	FY2022	FY2023	FY2024	FY2025	YoY	Trend
Revenue	$5.0B	$5.7B	$6.6B	$7.4B	$8.3B	11%
Operating income	$748M	$919M	$1.2B	$1.6B	$2.0B	25%
Net income	$258M	$469M	$765M	$1.2B	$1.5B	31%
Operating cash flow	$449M	$733M	$901M	$1.3B	$1.9B	45%
Capex	$199M	$193M	$219M	$321M	$453M	41%
Stock-based comp	$40M	$54M	$50M	$63M	$73M	16%
Buybacks	$430M	$400M	$250M	$500M	$700M	40%

Deal filings

None.

13D filers

Filed	Filer	Form	Stake	Intent
Jun 2, 2023	Elliott Investment Management L.P.	SC 13D/A	4.2%	Passive
May 8, 2023	Elliott Investment Management L.P.	SC 13D/A	5.4%	Passive
Feb 23, 2023	Elliott Investment Management L.P.	SC 13D/A	7.6%	Passive
Aug 31, 2022	Elliott Investment Management L.P.	SC 13D/A	8.8%	Passive
Jun 3, 2021	Elliott Investment Management L.P.	SC 13D/A	9.7%	Passive
Dec 2, 2020	Elliott Investment Management L.P.	SC 13D/A	9.6%	Passive
Jan 13, 2020	Elliott Investment Management L.P.	SC 13D/A	9.6%	Passive
Aug 28, 2019	ELLIOTT ASSOCIATES, L.P.	SC 13D/A	9.6%	Passive

Insider trading

Open-market buys, 12 mo: $0 · 0
Open-market sells, 12 mo: $23M · 3
Net: −$23M

Pay vs performance

Year	CEO total comp	Comp actually paid	TSR (indexed)	Peer TSR
FY2025	—	—	728	230
FY2024	—	—	387	162
FY2023	—	—	191	142
FY2022	—	—	139	133
FY2021	—	—	112	113