HWM
Howmet Aerospace Inc.
Is HWM Halal?
Mixed aerospace manufacturing with disputed defense end-use and debt/assets above the examined financial limits.
What You Should Know
Howmet makes engineered metal components for commercial aerospace, defense aerospace, commercial transportation and gas turbines. Its March 31, 2026 filing reports debt/assets of 35.86%, liquidity of 18.78%, receivables plus cash/assets of 25.84% and disclosed interest income of 0.26% of first-quarter sales. Aerospace-defense end-market revenue was $366 million of $2.313 billion; scholars differ on how components supplied to military programs should be treated.
⚠️ Concerns
- •Debt/assets is 35.86% and exceeds the examined FTSE, MSCI and Malaysia total-assets limits
- •Aerospace-defense end-market revenue was $366 million in the quarter
- •Engine and structural components can serve both commercial and military platforms
- •CAM acquisition, commercial paper, export controls and environmental obligations require continuing review
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.
4,686 / 13,067
2,455 / 13,067
3,375 / 13,067
6 / 2,313
- Financial
- Fails
- Overall
- Fails
Debt is 35.86%, above the examined FTSE asset limit; liquidity is 18.78%, receivables plus cash are 25.84%, and disclosed interest income is 0.26%.
- Financial
- Fails
- Overall
- Fails
Debt is 35.86%, above the examined MSCI total-assets limit; liquidity is 18.78% and receivables plus cash are 25.84%. This is a calculation against the named method, not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt is 35.86%, above the examined Malaysia SAC financial limit; liquidity is 18.78%. This is a calculation against SAC ratios, not an official classification of a U.S.-listed security.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible historical market-cap series is not stored, so these methods are not estimated from a current spot price.
Business-activity disclosure
Howmet manufactures engineered metal components for aerospace, defense aerospace, commercial transportation, gas turbines and other markets. Commercial aerospace and industrial components are generally permissible; defense applications and military end uses create a methodology- and scholar-dependent concern.
Limitation: The filing provides end-market revenue categories but does not resolve whether every defense-related component is prohibited under the investor's chosen scholarly standard; no blanket defense percentage or index-membership claim is used.
Purification
Howmet discloses a $6 million interest-income increase but does not prescribe a scholar-approved purification percentage. Readers should follow the scholar or methodology they use for treatment.
Inputs, assumptions and primary sources
- Debt uses $4.686 billion of debt obligations, including $4.050 billion of long-term debt, $186 million due within one year and $450 million of commercial paper. Operating lease liabilities are not entered as conventional debt.
- Cash uses $2.435 billion of cash and cash equivalents. Interest-bearing securities use $17 million of available-for-sale securities plus $3 million of held-to-maturity investments disclosed in Note P.
- Receivables use $940 million of customer receivables. Revenue uses $2.313 billion of first-quarter sales.
- The filing says other expense was reduced by a $6 million increase in interest income; this disclosed amount is used as a conservative income numerator, while interest expense is reported net at $43 million.
- Howmet reports $366 million of first-quarter aerospace-defense end-market revenue and $1.215 billion of aerospace-commercial revenue, but defense treatment varies by scholar and no universal prohibited-revenue numerator is imposed here.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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