Howmet AerospaceBUE:HWM +0.04%68 Operating Margin % is 28.53% as of Mar. 2026, which is 74% above its 10-year median of 16.36. GuruFocus rates BUE:HWM with a GF Score™ of 68/100 and a GF Value™ of ARS215,828.42 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 347 Aerospace & Defense companies, Howmet Aerospace ranks better than 93.95% on this metric.
Howmet Aerospace Inc operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Howmet Aerospace's Operating Margin % or its related term are showing as below:
BUE:HWM'
s Operating Margin % Range Over the Past 10 Years
Min: 8.95 Med: 16.36 Max: 26.42
Current: 26.42
BUE:HWM's Operating Margin % is ranked better than 93.95% of 347
companies
in the Aerospace & Defense industry
Industry Median: 7.75
vs BUE:HWM: 26.42
Howmet Aerospace's 5-Year Average Operating Margin % Growth Rate was 10.60% per year.
Howmet Aerospace's Operating Income for the
three
months ended in Mar. 2026 was ARS922,842 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was ARS3,084,859 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Howmet Aerospace Operating Margin % Related Terms
Howmet Aerospace Operating Margin % Historical Data
* Premium members only.
The historical data trend for Howmet Aerospace's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BUE:HWM vs GD, LMT, RKLB: Operating Margin % Comparison
For the Aerospace & Defense subindustry, Howmet Aerospace's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Howmet Aerospace Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Howmet Aerospace's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Howmet Aerospace's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Howmet Aerospace's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Howmet Aerospace (BUE:HWM) has a Operating Margin % of 28.53% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Howmet Aerospace and its competitors. This is 74% above median its historical median of 16.36. Over the past decade, Howmet Aerospace's Operating Margin % has ranged from 8.95 to 26.42. According to the industry distribution chart, Howmet Aerospace ranks #21 out of 347 companies in the Aerospace & Defense industry, placing it in the top 6.1%.
Is Howmet Aerospace's Operating Margin % too high?
Howmet Aerospace's current Operating Margin % of 28.53% is 74% above median its 10-year median of 16.36. Over the past 10 years, this metric has ranged from a low of 8.95 to a high of 26.42. The Aerospace & Defense industry median Operating Margin % is 7.75. Howmet Aerospace's value of 28.53% is 268.1% above this industry median. Based on the distribution chart, Howmet Aerospace ranks #21 out of 347 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Howmet Aerospace has a GF Score™ of 68/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Howmet Aerospace's Operating Margin % compare to GD and LMT?
According to the Aerospace & Defense industry distribution chart, Howmet Aerospace ranks #21 out of 347 companies for Operating Margin %. This places Howmet Aerospace in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.75. Howmet Aerospace's value of 28.53% is 268.1% above this benchmark. Historically, Howmet Aerospace's own Operating Margin % has ranged from 8.95 to 26.42 over the past decade. While the company's 10-year median is 16.36 vs. the industry median of 7.75, Howmet Aerospace has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.75, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Howmet Aerospace's current Operating Margin % of 28.53% is 268.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Howmet Aerospace and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Howmet Aerospace's current Operating Margin % is 28.53%, which is 74% above median its own 10-year median of 16.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Howmet Aerospace stock overvalued right now?
Based on GuruFocus' analysis, Howmet Aerospace (BUE:HWM) is currently considered Significantly Overvalued. The stock's GF Value™ is ARS215,828.42, compared to a current price of ARS427,875.00 — trading 98.2% above its estimated fair value. The current Operating Margin % is 28.53%, which is 74% above median its 10-year median of 16.36 and 268.1% above the Aerospace & Defense industry median of 7.75. Howmet Aerospace's overall GF Score™ is 68/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Howmet Aerospace (BUE:HWM), the current Operating Margin % is 28.53% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Howmet Aerospace (BUE:HWM) Overvalued in 2026?
Based on GuruFocus' analysis, Howmet Aerospace stock appears to be overvalued.
The current stock price of ARS427,875.00 is trading 98.2% above its estimated GF Value™ of ARS215,828.42.
GuruFocus considers Howmet Aerospace to be Significantly Overvalued.
Key valuation signals for BUE:HWM:
Operating Margin %: 28.53% (74% above median its 10-year median of 16.36)
GF Value™: ARS215,828.42 vs. price of ARS427,875.00 (98.2% above fair value)
Industry Position: 268.1% above the Aerospace & Defense median (#21 of 347)
No single metric tells the full story. See the BUE:HWM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Howmet Aerospace Inc offers engineered solutions for the aerospace and transportation industries. The company's products and solutions include investment castings for jet engines and industrial gas turbines; seamless rolled rings for jet engines; fastening systems for aerospace, industrial and commercial transportation applications; forged jet engine components (e.g., jet engine disks); machined and forged aircraft parts; and forged aluminum commercial vehicle wheels, all of which are sold directly to customers or through distributors. It has four reportable segments: Engine Products, which derives key revenue, Fastening Systems, Engineered Structures, and Forged Wheels. Geographically, the company derives maximum revenue from the USA, followed by France, Japan, Germany, and other markets.
68GF Score
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