A Giant Leap for Howmet Aerospace: Jefferies Backs $1.8 Billion Acquisition, Sees Major Earnings Boost
The aerospace sector is buzzing with a fresh piece of high-flying financial news, as industry supplier Howmet Aerospace Inc. (HWM) announced a significant acquisition that has immediately earned a hearty endorsement from Wall Street. Howmet is set to acquire Consolidated Aerospace Manufacturing (CAM) from Stanley Black & Decker in an all-cash deal valued at approximately $1.8 billion, a move that analysts say will give Howmet’s earnings per share (EPS) a meaningful lift well into 2026.
The deal is a clear strategic play for Howmet, which already specializes in engineered components like jet engine parts and fastening systems. CAM is a leading global designer and manufacturer of precision fasteners and fluid fittings for the aerospace and defense markets. By bringing CAM into the fold, Howmet’s leadership, including Executive Chairman and CEO John C. Plant, says the company is taking a major step in building out its differentiated fastener portfolio and deepening its exposure to critical aerospace and defense platforms.
The Analyst’s View: A Clear Financial Tailwind
One of the loudest cheerleaders for the transaction is investment bank Jefferies. Analyst Sheila Kahyaoglu and her team maintain a “Buy” rating on Howmet and have set an impressive price target of $245 for the stock. They estimate that, assuming the deal closes around the middle of the second quarter of the year and is partly financed through new debt, the acquisition could be about 2% accretive to Howmet’s EPS for the full year 2026. Looking further out, Jefferies suggests the boost could exceed 3% in the first full year of operations following the close.
The financial math behind the optimism is compelling. CAM is projected to generate between $485 million and $495 million in revenue for fiscal year 2026. This is a noticeable jump from its previous owner’s guidance, suggesting a robust year-over-year growth rate approaching 20%, which Jefferies points out implies strong momentum for the business Howmet is acquiring.
A Company on Solid Ground
The acquisition comes at a time when Howmet is already flying high on its own. The company has been performing well, reporting strong third-quarter 2025 results with an adjusted EPS of $0.95, which surpassed Wall Street expectations. Following this strong performance, Howmet’s management raised its full-year 2025 revenue and profit expectations. The new guidance projects adjusted earnings for the year to land between $3.66 and $3.68 per share.
Looking ahead, Howmet has also been vocal about its expectations for continued expansion, projecting a healthy 10% revenue increase for 2026, pushing its top line to roughly $9 billion. The CAM acquisition is perfectly timed to capitalize on this broader industry upcycle. With the transaction expected to finalize in the first half of 2026, pending regulatory approval, it will seamlessly integrate into an already accelerating business, giving Howmet a wider array of mission-critical solutions for its global defense and aviation customers.
For investors, the consensus is clear: Howmet’s strategic decision to strengthen its core fastener business with this major purchase has created a compelling growth story for the immediate future.
