Howmet Aerospace to Acquire Consolidated Aerospace Manufacturing from Stanley Black & Decker for approximately $1.8 Billion

Rhea-AI Summary

Howmet Aerospace (NYSE: HWM) agreed to acquire Consolidated Aerospace Manufacturing (CAM) from Stanley Black & Decker for an all-cash $1.8 billion purchase price. Howmet expects CAM to generate FY2026 revenue of $485–$495 million with an adjusted EBITDA margin above 20% before synergies. The deal will receive favorable federal tax treatment, producing a significant tax benefit for Howmet. Combined synergies and the tax benefit are expected to yield a FY2026 adjusted EBITDA transaction multiple of ~13x. Closing is targeted in first half of 2026, subject to customary conditions and regulatory approvals.

J.P. Morgan served as financial advisor and Cleary Gottlieb as legal counsel.

Positive

• All-cash purchase price of $1.8 billion
• Expected FY2026 revenue $485–495M from CAM
• Adjusted EBITDA margin >20% for FY2026 before synergies
• Transaction receives favorable federal tax treatment increasing deal economics
• Strategic fit expands Howmet's high-tech aerospace fastening portfolio

Negative

• Implied ~13x FY2026 adjusted EBITDA transaction multiple
• Deal closing subject to regulatory approvals and customary conditions

Key Figures

Acquisition price $1.8 billion All-cash purchase price for CAM

FY 2026 CAM revenue approximately $485 to $495 million Howmet expectation for CAM FY 2026 revenue

Adjusted EBITDA margin in excess of 20% Expected FY 2026 CAM adjusted EBITDA margin before synergies

EBITDA multiple approximately 13x FY 2026 adjusted EBITDA transaction multiple including synergies and tax benefit

Expected closing first half of 2026 Target closing window for CAM acquisition

Current share price $203.49 Price prior to publication of acquisition news

52-week range $105.0401–$211.95 Pre-news 52-week low and high for HWM

Market cap $79,695,000,000 Pre-news market capitalization

Market Reality Check

$75.24 Last Close

Volume Volume 3,158,825 vs 20-day average 2,427,260 (relative volume 1.3x). normal

Technical Price 203.49 is trading above 200-day MA at 173.41, near 52-week high 211.95.

Peers on Argus

Key aerospace & defense peers (e.g., TDG, NOC, LMT) show modest gains between 0.44% and 1.79%, but sector momentum scanners did not flag a broad move, suggesting today’s reaction in HWM is more company-specific around the CAM acquisition.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Nov 03	Debt offering	Positive	-0.8%	Priced $500M 4.550% notes to refinance higher-cost 2027 debt.
Oct 30	Earnings report	Positive	-0.8%	Record Q3 2025 results, margin expansion, raised FY2025 and FY2026 outlook.
Oct 22	Leadership change	Neutral	+4.6%	CFO retirement and appointment of new EVP & CFO Patrick Winterlich.
Oct 01	Earnings webcast	Neutral	-0.7%	Scheduled Q3 2025 earnings release and investor conference call details.
Sep 30	Dividend declaration	Positive	-0.7%	Board approved quarterly dividend of $0.12 per share on common stock.

Pattern Detected

Recent history shows several instances where positive financial or capital structure news was followed by modest share price declines, indicating a tendency toward short-term sell-the-news behavior.

Recent Company History

Over the past few months, Howmet reported record Q3 2025 results with revenue of $2.09B, strong margins, and raised FY2025 guidance, yet the stock fell slightly after that news. The company also executed a $500M debt refinancing and announced a quarterly dividend of $0.12 per share, both followed by small negative moves. Leadership changes with a new CFO on October 22, 2025 were better received, with the stock rising. Against this backdrop, the CAM acquisition continues a pattern of active capital deployment and portfolio refinement.

Market Pulse Summary

This announcement outlines Howmet’s plan to acquire CAM for about $1.8 billion, adding expected FY 2026 revenue of $485–$495 million at an adjusted EBITDA margin above 20%. The indicated adjusted EBITDA transaction multiple of roughly 13x, including synergies and tax benefits, frames how the company values CAM’s contribution. In context of recent strong Q3 results and active balance sheet management, key factors to watch include regulatory approvals, closing timing in the first half of 2026, and future updates on synergy realization.

Key Terms

all-cash transaction financial

"from Stanley Black & Decker, Inc. (NYSE: SWK) for an all-cash purchase price of approximately"

An all-cash transaction is a deal where the full purchase price is paid immediately in cash or cash equivalents, rather than through financing or installment payments. For investors, this type of transaction often indicates a quick, straightforward sale and can signal confidence from the buyer, potentially affecting the value and perception of the involved assets.

adjusted EBITDA margin financial

"expects CAM to generate FY 2026 revenue of approximately $485 to $495 million, with adjusted EBITDA margin in excess of 20% before"

Adjusted EBITDA margin shows how much profit a company makes from its core operations, expressed as a percentage of its total revenue, after removing certain one-time or unusual expenses and income. It helps investors understand the company's true earning ability from regular business activities, making it easier to compare performance over time or with other companies. Think of it as measuring the efficiency of a business in turning sales into profits, excluding irregular adjustments.

adjusted EBITDA financial

"tax benefit is expected to result in a FY 2026 adjusted EBITDA transaction multiple of approximately 13x."

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

definitive agreement regulatory

"today announced it has entered into a definitive agreement to acquire Consolidated Aerospace"

A definitive agreement is a formal, legally binding document that outlines the final terms and conditions of a deal or transaction, such as a sale or partnership. It acts like a detailed contract that confirms all parties have agreed on the key details, making the deal official. For investors, it signals that the agreement is settled and moving toward completion, providing clarity and security about the transaction.

AI-generated analysis. Not financial advice.

• Acquisition valued at approximately $1.8 billion and strengthens Howmet Aerospace's portfolio of high-tech, mission-critical aerospace fastening solutions
• All-cash transaction deepens exposure to key aerospace and defense platforms

PITTSBURGH, Dec. 22, 2025 /PRNewswire/ -- Howmet Aerospace Inc. (NYSE: HWM) today announced it has entered into a definitive agreement to acquire Consolidated Aerospace Manufacturing, LLC (CAM), a leading global designer and manufacturer of precision fasteners, fluid fittings, and other complex, highly engineered products for demanding aerospace and defense applications, from Stanley Black & Decker, Inc. (NYSE: SWK) for an all-cash purchase price of approximately $1.8 billion. The transaction will receive favorable treatment for federal tax purposes, which will result in a significant tax benefit for Howmet.

Howmet expects CAM to generate FY 2026 revenue of approximately $485 to $495 million, with adjusted EBITDA margin in excess of 20% before synergies.  The combination of synergies and the aforementioned tax benefit is expected to result in a FY 2026 adjusted EBITDA transaction multiple of approximately 13x.

"The acquisition of CAM is a major step in our strategy to build out our differentiated fastener portfolio," said John C. Plant, Executive Chairman and Chief Executive Officer of Howmet Aerospace. "CAM's established brands, engineering prowess, and deep customer relationships are a perfect complement to our existing business. This transaction will allow us to better serve our aerospace and defense customers with a broader offering of mission-critical fastening solutions and represents a compelling use of capital to drive value for our shareholders."

The transaction is expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals.

J.P. Morgan Securities LLC is serving as financial advisor to Howmet Aerospace, and Cleary Gottlieb Steen & Hamilton LLP is serving as legal counsel.

About Howmet Aerospace
Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace and transportation industries. The Company's primary businesses focus on jet engine components, aerospace fastening systems, and airframe structural components necessary for mission-critical performance and efficiency in aerospace and defense applications, as well as forged aluminum wheels for commercial transportation. With approximately 1,170 granted and pending patents, the Company's differentiated technologies enable lighter, more fuel-efficient aircraft and commercial trucks to operate with a lower carbon footprint. For more information, visit www.howmet.com.

Forward-Looking Statements
This press release contains statements that relate to future events and expectations and as such constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goal," "guidance," "intends," "may," "outlook," "plans," "projects," "seeks," "sees," "should," "targets," "will," "would," or other words of similar meaning. All statements that reflect Howmet Aerospace's expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements regarding the planned acquisition of Consolidated Aerospace Manufacturing, LLC from Stanley Black & Decker, Inc. and the expected benefits and timing of the transaction. These statements reflect beliefs and assumptions that are based on Howmet Aerospace's perception of historical trends, current conditions and expected future developments, as well as other factors Howmet Aerospace believes are appropriate in the circumstances. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and changes in circumstances that are difficult to predict, which could cause actual results to differ materially from those indicated by these statements. Such risks and uncertainties include, but are not limited to: the ability to consummate the proposed acquisition on the expected terms and within the anticipated closing time period or at all because required regulatory approval or other conditions to closing are not received or satisfied on a timely basis or at all; the occurrence of any event, change or other circumstance that could give rise to the termination of the transaction agreement entered into with respect to the proposed acquisition; the ability to realize the expected benefits of the proposed acquisition, including the anticipated synergies and favorable tax treatment of the proposed transaction and the anticipated broader offering of fastening solutions; the impact of a delay in completing the proposed acquisition or in integrating the Consolidated Aerospace Manufacturing, LLC business, which may be more difficult, time consuming or costly than expected; operating costs, customer loss and business disruption (including, without limitation, difficulties in retaining or maintaining relationships with employees, customers or suppliers) that may be greater than expected following the proposed acquisition or the public announcement of the proposed acquisition; and the other risk factors summarized in Howmet Aerospace's Annual Report on Form 10-K for the year ended December 31, 2024 and other reports filed with the U.S. Securities and Exchange Commission. The statements in this release are made as of the date of this release, even if subsequently made available by Howmet Aerospace on its website or otherwise. Howmet Aerospace disclaims any intention or obligation to update publicly any forward-looking statements, whether in response to new information, future events, or otherwise, except as required by applicable law.

 

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SOURCE Howmet Aerospace Inc.

FAQ

What is Howmet Aerospace paying for Consolidated Aerospace Manufacturing (HWM)?

Howmet agreed to acquire CAM for an all-cash purchase price of approximately $1.8 billion.

What revenue and margin does Howmet expect from CAM in FY2026 (HWM)?

Howmet expects CAM to generate $485–$495 million in FY2026 revenue with an adjusted EBITDA margin above 20% before synergies.

When is the Howmet (HWM) acquisition of CAM expected to close?

The transaction is expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals.

How does the tax treatment affect Howmet's (HWM) acquisition economics?

The deal will receive favorable federal tax treatment, which Howmet says will produce a significant tax benefit and improve transaction economics.

What valuation metric did Howmet (HWM) disclose for the CAM deal?

Howmet cited an adjusted EBITDA transaction multiple of approximately 13x on FY2026 estimates after synergies and tax benefit.

Who advised Howmet (HWM) on the CAM acquisition?

J.P. Morgan Securities served as financial advisor and Cleary Gottlieb Steen & Hamilton served as legal counsel.