Howmet Is Buying Stanley Black & Decker's Aerospace Unit — What Did Jefferies Say About Its EPS?

• Howmet Aerospace announced on Monday that it will acquire Stanley Black & Decker’s CAM unit for approximately $1.8 billion in an all-cash transaction. 
• Jefferies has a ‘Buy’ rating on the company with a price target of $245.
• Howmet Aerospace expects the deal to generate $485 million to $495 million in revenues in 2026 and an adjusted EBITDA margin of over 20%.

Howmet Aerospace Inc.’s (HWM) acquisition of Stanley Black & Decker’s (SWK) consolidated aerospace manufacturing unit could add 2% to the former’s 2026 earnings per share and over 3% to its first full-year EPS, Jefferies said on Monday.

The firm’s analyst, Sheila Kahyaoglu, noted that the increase would assume the deal closed in mid-Q2 and would include half new debt financing, according to TheFly. Jefferies has a ‘Buy’ rating on the company with a price target of $245.

Earlier on Monday, Howmet Aerospace announced that it will acquire Stanley Black & Decker’s CAM for approximately $1.8 billion in an all-cash transaction. Shares of HWM were up over 1.5% on Monday, while shares of SWK climbed nearly 5% at the time of writing.

Deal Contours

Pittsburgh-headquartered Howmet Aerospace, which provides engineered solutions for the aerospace and transportation industries, expects the CAM acquisition to generate revenue of about $485 million to $495 million in 2026 and an adjusted EBITDA margin of over 20%. It will also receive favorable treatment for federal tax purposes, resulting in a significant tax benefit.

Meanwhile, Stanley Black & Decker expects CAM to generate revenue of about $405 million to $415 million in 2025. The firm expects to utilize the sale proceeds to reduce its debt.

"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," said John C. Plant, Executive Chairman and Chief Executive Officer of Howmet Aerospace.

The transaction is expected to close in the first half of 2026.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around HWM stock remained in the ‘bearish’ territory, and message volume stayed at ‘high’ levels at the time of writing. Meanwhile, retail sentiment for SWK stock was in the ‘neutral’ territory over the past day, and message volume stayed at ‘normal’.

Shares of Howmet Aerospace are up over 85% in the past year, while Stanley Black & Decker stock is down over 4% in the same period.

For updates and corrections, email newsroom[at]stocktwits[dot]com.
 

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