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Reading: Jefferies Backs Howmet (HWM) Acquisition, Sees EPS Elevate into 2026
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Jefferies Backs Howmet (HWM) Acquisition, Sees EPS Elevate into 2026

Madisony
Last updated: January 4, 2026 6:19 am
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Jefferies Backs Howmet (HWM) Acquisition, Sees EPS Elevate into 2026
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Howmet Aerospace Inc. (NYSE:HWM) is included among the many 20 Greatest Performing Dividend Shares in 2025.

Jefferies Backs Howmet (HWM) Acquisition, Sees EPS Elevate into 2026

On December 22, Jefferies analyst Sheila Kahyaoglu stated Howmet Aerospace Inc. (NYSE:HWM) is buying Consolidated Aerospace Manufacturing from Stanley Black & Decker in an all-cash deal valued at $1.8 billion. Jefferies assumes the transaction closes round mid-Q2, with roughly half of the acquisition funded by way of new debt. Underneath these assumptions, the agency estimates the deal may add about 2% to 2026 EPS and greater than 3% within the first full yr after closing. Administration expects Consolidated Aerospace Manufacturing to generate FY26 income between $485 million and $495 million. That compares with Stanley Black & Decker’s outlook of $405 million to $415 million in FY25 gross sales. Jefferies notes the hole implies shut to twenty% year-over-year progress. The agency maintains a Purchase score on Howmet and a $245 value goal.

Howmet Aerospace Inc. (NYSE:HWM) confirmed the transaction the identical day, saying it’s going to purchase plane fastener maker Consolidated Aerospace Manufacturing for about $1.8 billion in money.

Earlier, the corporate additionally lifted its 2025 income forecast to a spread of $8.18 billion to $8.2 billion, up from its prior outlook of $8.08 billion to $8.18 billion. Revenue expectations additionally moved greater. Howmet now sees adjusted earnings of $3.66 to $3.68 per share, in contrast with $3.56 to $3.64 beforehand. For the third quarter, Howmet Aerospace Inc. (NYSE:HWM) reported adjusted earnings of $0.95 per share, forward of Wall Avenue’s $0.91 estimate. Income reached $2.09 billion, topping the $2.04 billion analysts have been anticipating.

Howmet Aerospace Inc. (NYSE:HWM) produces superior, engineered parts used throughout the aerospace, protection, and business transportation markets.

Whereas we acknowledge the potential of HWM as an funding, we consider sure AI shares provide larger upside potential and carry much less draw back threat. In the event you’re searching for a particularly undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring pattern, see our free report on the finest short-term AI inventory.

READ NEXT: 14 Greatest Pharma Dividend Shares to Purchase in 2026 and 14 Greatest Dividend Aristocrats to Put money into Heading into 2026.

Disclosure: None.

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