Howmet Aerospace vs StandardAero
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KIRA’s take AI analyst
I put Howmet Aerospace and StandardAero side by side, using each one’s latest annual report. Here is what stands out:
- Howmet Aerospace is the larger business, with $8.3B of revenue in fiscal 2025 against $6.1B for StandardAero.
- StandardAero grew revenue faster (15.8%, against 11.1%).
- Howmet Aerospace kept more of each dollar of sales as operating profit (24.8% operating margin, against 9.1%).
- Howmet Aerospace turned more of its sales into free cash flow (17.3% FCF margin, against 3.9%).
- Howmet Aerospace earned a higher return on the capital invested in it (22.4%, against 8.9%).
- Investors pay more for each dollar of Howmet Aerospace’s earnings: a P/E of 41.9x against 23.1x for StandardAero.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
Howmet Aerospace
HWM
7/9
Operating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
StandardAero
SARO
2/9
Revenue growthPiotroski F-score
Side by side
Best in the row
| Latest fiscal year | HWM FY25 | SARO FY25 |
|---|---|---|
| Size | ||
| Market cap | $78.1B | $7.5B |
| Revenue | $8.3B | $6.1B |
| Free cash flow | $1.4B | $234M |
| Net income | $1.5B | $277M |
| Growth | ||
| Revenue growth | 11.1% | 15.8% |
| 5-year growth | 9.4% | — |
| Share count change | −1.0% | 15.4% |
| Profitability | ||
| Gross margin | — | 14.8% |
| Operating margin | 24.8% | 9.1% |
| Net margin | 18.3% | 4.6% |
| FCF margin | 17.3% | 3.9% |
| Return on capital | 22.4% | 8.9% |
| Return on equity | 30.4% | 11.0% |
| Balance sheet | ||
| Net debt | $2.3B | $1.9B |
| Net debt / EBITDA | 1.0x | 2.6x |
| Dividends and buybacks | $881M | $0.0M |
| Valuation & quality | ||
| P/E | 41.9x | 23.1x |
| Piotroski F-score | 7 | 8 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.