We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Howmet's CAM Acquisition is Strategically Important
Read MoreHide Full Article
Key Takeaways
Howmet Aerospace will acquire Consolidated Aerospace Manufacturing for $1.8B.
CAM's brands and engineering expertise will expand HWM's aerospace fastening portfolio.
CAM is expected to generate $485-$495M in 2026 revenues, with margins above 20%.
Howmet Aerospace Inc. (HWM - Free Report) recently inked a deal with Stanley Black & Decker, Inc. (SWK - Free Report) to acquire its business unit, Consolidated Aerospace Manufacturing LLC (“CAM”). The deal carries a cash value of about $1.8 billion. This move marks a pivotal move in strengthening HWM’s long-term growth strategy.
CAM is engaged in producing and supplying aerospace components, including fluid fittings, precision fasteners and other advanced engineered products, for aerospace and defense platforms. The latest buyout is in sync with Howmet’s policy of acquiring businesses to strengthen its market share and customer base. CAM’s well-known brands, engineering expertise and strong customer relationships are expected to strengthen HWM’s aerospace fastening solutions portfolio. By adding CAM, Howmet will be able to offer more comprehensive solutions to the aerospace and defense customers.
In 2026, CAM is expected to post revenues of about $485-$495 million and maintain adjusted EBITDA margin above 20% before the acquisition completes. Subject to customary closing conditions, the acquisition is expected to close in the first half of 2026.
The CAM acquisition is expected to give Howmet access to well-known brands, skilled engineering teams and strong customer relationships, allowing it to offer a wider range of products and services. As global aircraft production and defense spending remain robust, the addition of CAM positions HWM to enhance its fastening systems portfolio and strengthen its competitive position in the aerospace and defense industry.
Expansion Efforts of HWM’s Peers
Among its major peers, in July 2025, RBC Bearings Incorporated (RBC - Free Report) completed the acquisition of VACCO Industries from ESCO Technologies for about $275 million in cash. The inclusion of VACCO’s expertise in engineered valves, regulators and manifolds, supported by its strong designing, engineering and production capabilities, enables RBC Bearings to expand its customer offerings in the defense, space and commercial markets. In the fiscal second quarter of 2026 (ended September 2025), VACCO contributed $24.7 million in net sales to the RBC Bearings’ Aerospace & Defense segment.
Its another peer, HEICO Corp.’s (HEI - Free Report) disciplined acquisition strategy has been driving its overall performance. In November 2025, HEICO agreed to acquire Axillon Aerospace's Fuel Containment Business from affiliates of SK Capital Partners, LP. This buyout is expected to strengthen HEICO’s position across key U.S. military and commercial aircraft platforms.
HWM's Price Performance, Valuation and Estimates
Shares of Howmet have surged 90.7% in the past year compared with the industry’s growth of 31.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 48.17X, above the industry’s average of 30.43X. Howmet carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s 2025 earnings has remained steady over the past 30 days.
Image: Bigstock
Here's Why Howmet's CAM Acquisition is Strategically Important
Key Takeaways
Howmet Aerospace Inc. (HWM - Free Report) recently inked a deal with Stanley Black & Decker, Inc. (SWK - Free Report) to acquire its business unit, Consolidated Aerospace Manufacturing LLC (“CAM”). The deal carries a cash value of about $1.8 billion. This move marks a pivotal move in strengthening HWM’s long-term growth strategy.
CAM is engaged in producing and supplying aerospace components, including fluid fittings, precision fasteners and other advanced engineered products, for aerospace and defense platforms. The latest buyout is in sync with Howmet’s policy of acquiring businesses to strengthen its market share and customer base. CAM’s well-known brands, engineering expertise and strong customer relationships are expected to strengthen HWM’s aerospace fastening solutions portfolio. By adding CAM, Howmet will be able to offer more comprehensive solutions to the aerospace and defense customers.
In 2026, CAM is expected to post revenues of about $485-$495 million and maintain adjusted EBITDA margin above 20% before the acquisition completes. Subject to customary closing conditions, the acquisition is expected to close in the first half of 2026.
The CAM acquisition is expected to give Howmet access to well-known brands, skilled engineering teams and strong customer relationships, allowing it to offer a wider range of products and services. As global aircraft production and defense spending remain robust, the addition of CAM positions HWM to enhance its fastening systems portfolio and strengthen its competitive position in the aerospace and defense industry.
Expansion Efforts of HWM’s Peers
Among its major peers, in July 2025, RBC Bearings Incorporated (RBC - Free Report) completed the acquisition of VACCO Industries from ESCO Technologies for about $275 million in cash. The inclusion of VACCO’s expertise in engineered valves, regulators and manifolds, supported by its strong designing, engineering and production capabilities, enables RBC Bearings to expand its customer offerings in the defense, space and commercial markets. In the fiscal second quarter of 2026 (ended September 2025), VACCO contributed $24.7 million in net sales to the RBC Bearings’ Aerospace & Defense segment.
Its another peer, HEICO Corp.’s (HEI - Free Report) disciplined acquisition strategy has been driving its overall performance. In November 2025, HEICO agreed to acquire Axillon Aerospace's Fuel Containment Business from affiliates of SK Capital Partners, LP. This buyout is expected to strengthen HEICO’s position across key U.S. military and commercial aircraft platforms.
HWM's Price Performance, Valuation and Estimates
Shares of Howmet have surged 90.7% in the past year compared with the industry’s growth of 31.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, HWM is trading at a forward price-to-earnings ratio of 48.17X, above the industry’s average of 30.43X. Howmet carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HWM’s 2025 earnings has remained steady over the past 30 days.
Image Source: Zacks Investment Research
Howmet currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.