Howmet Aerospace's share value more than doubled in 2024

Howmet Aerospace is an interesting option for investors looking for stability and strong performance. The company's shares more than doubled in 2024, and it appears ready to keep growing. Howmet manufactures fasteners and other specialized products for big customers, including Boeing and Airbus. There is a rising demand for more fuel-efficient airplanes, and Howmet's lightweight products are essential to these designs. Spare part sales are especially profitable for the company. As Boeing struggles to increase production, airlines have turned to maintaining their existing aircraft, boosting the need for replacement parts. In 2024, Howmet's revenue increased by 12%, and it generated nearly $1 billion in free cash flow. This strong cash flow has allowed CEO John Plant to keep the balance sheet healthy and reward shareholders with nearly $975 million spent on stock buybacks, dividends, and paying down debt. The company is also investing in new materials and improving its manufacturing processes. However, it is important to consider that the aerospace industry is cyclical. During tough economic times, airlines may need fewer aircraft, affecting demand for parts. Although demand surged after the pandemic, this growth may not last indefinitely. Howmet may also face issues like supply chain disruptions. Despite these challenges, Howmet has a strong management team and a history of weathering economic cycles. While it may not double in value each year, Howmet Aerospace could be a solid option for those seeking long-term stability in their investment portfolio.