GET DAILY SIGNALSHowmet Aerospace (HWM) Delivers Record Q3 2026 Results with +29% Revenue Growth
Key Takeaways
- Howmet Aerospace reported third quarter 2026 revenue of $2.70 billion, up 29% year over year, with 25% organic growth — the strongest quarterly growth rate in the company's history.
- Adjusted earnings per share (EPS) reached $1.46, a 54% increase from the prior-year period and well above the $1.37 consensus estimate; GAAP diluted EPS was $1.42.
- Revenue, EBITDA margin, and EPS all exceeded the high end of management's guidance for the quarter.
- Management raised full-year 2026 guidance and introduced a 2027 revenue target of roughly $11.5 billion, while the board authorized a $5 billion increase to the share repurchase program.
- Quarterly free cash flow came in at $562 million, and the quarterly dividend was increased 17% to $0.14 per share.
Earnings Context and Why It Matters
Howmet Aerospace is a leading manufacturer of advanced engine components, fastening systems, and structural parts for commercial aerospace, defense, and industrial gas turbines. Its quarterly report serves as a key read on global aerospace build rates, engine spares demand, and the fast-growing gas turbine market tied to data-center electricity needs. The company entered this report following two consecutive quarters of accelerating organic growth, and its results carry added weight for investors tracking the durability of commercial aviation demand and the recovery in North American commercial transportation. With the stock trading below its 52-week high heading into the print, this earnings release was closely watched as a test of whether premium aerospace suppliers can sustain strong growth and margin expansion. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Reported Results
Howmet Aerospace reported third quarter 2026 revenue of $2.703 billion, up 29% year over year, exceeding the analyst consensus of roughly $2.59 billion. Organic growth was 25%, accelerating from 21% in the second quarter. GAAP net income was $567 million, with diluted EPS of $1.42. Adjusted EPS came in at $1.46, up 54% from $0.95 a year earlier and above the $1.37 consensus estimate. Adjusted EBITDA rose 43% to $879 million, lifting the adjusted EBITDA margin 310 basis points to 32.5%.
Growth was broad-based: commercial aerospace revenue rose 32%, defense aerospace grew 10%, commercial transportation increased 28%, and gas turbine revenue surged 45%. Spares revenue climbed 30% to roughly $570 million, about 21% of total sales. Free cash flow was $562 million, and the company repurchased $500 million of stock during the quarter.
Market Reaction and Investor Sentiment
Investors responded positively to the report, with Howmet Aerospace shares rising more than 3% to over 4% in the session following the announcement. The move reflected a beat on both revenue and adjusted EPS, raised full-year guidance, and a sizable expansion of the share buyback program. Management lifted full-year 2026 revenue guidance to a baseline of $10.3 billion and projected approximately $11.5 billion in 2027 revenue, signaling confidence in multi-year demand. The $5 billion increase to the repurchase authorization — bringing the total to $5.397 billion — reinforced a shareholder-friendly capital return message that supported sentiment despite the stock trading at an elevated valuation relative to trailing earnings.
Forward Outlook and Key Factors to Monitor
For the fourth quarter, Howmet expects revenue of $2.740 billion to $2.760 billion, adjusted EPS of $1.49 to $1.51, and adjusted EBITDA of $895 million to $905 million. Full-year 2026 guidance now calls for revenue of $10.29 billion to $10.31 billion and adjusted EPS of $5.49 to $5.51.
The company's initial 2027 outlook of roughly $11.5 billion in revenue — about 12% growth — anchors management's confidence in sustained demand across commercial aerospace, defense, and industrial gas turbines. Investors will want to monitor aircraft production rates for the 737, A320, 787, and A350 programs, as well as the strength of engine spares demand driven by shop visits and time-on-wing issues for newer narrow-body engines.
Other factors worth watching include the pass-through of higher aluminum costs in the commercial transportation segment, which has pressured margins, and the pace of defense spending tied to missile production and inventory replenishment. The industrial gas turbine market remains a focal point, with management noting that new capacity is effectively sold out and customers are signaling demand well into the 2030s, particularly for data-center-related power needs. From what I see, this outlook sets a solid foundation for continued performance.
Using Tickeron’s AI Tools in My Analysis
In my research process, I often turn to Tickeron’s AI Screener to quickly filter opportunities in the aerospace sector and compare fundamentals across peers. It helps surface patterns and signals that complement traditional earnings analysis, allowing me to validate growth trends without spending hours on manual screens. This approach keeps my workflow efficient while highlighting stocks that align with the same metrics we saw in Howmet’s report.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
HWM sees its 50-day moving average cross bearishly below its 200-day moving average
The 50-day moving average for HWM moved below the 200-day moving average on October 14, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 07, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on HWM as a result. In 36 of 75 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 48%.
The Moving Average Convergence Divergence Histogram (MACD) for HWM turned negative on October 21, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 56 similar instances when the indicator turned negative. In 34 of the 56 cases the stock turned lower in the days that followed. This puts the odds of success at 61%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where HWM declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 50%.
The Aroon Indicator for HWM entered a downward trend on October 28, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where HWM's RSI Oscillator exited the oversold zone, 11 of 16 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 69%.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a +1.57% 3-day Advance, the price is estimated to grow further. Considering data from situations where HWM advanced for three days, in 255 of 351 cases, the price rose further within the following month. The odds of a continued upward trend are 73%.
HWM may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 29 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 29 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 78, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 64 (best 1 - 100 worst), indicating steady price growth. HWM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 76 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: HWM's P/B Ratio (13.580) is slightly higher than the industry average of (5.023). P/E Ratio (41.886) is within average values for comparable stocks, (16.821). Projected Growth (PEG Ratio) (0.450) is also within normal values, averaging (2.564). Dividend Yield (0.003) settles around the average of (0.060) among similar stocks. P/S Ratio (10.081) is also within normal values, averaging (18.330).
The Tickeron PE Growth Rating for this company is 78 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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a company, which engages in manufacturing and engineering of lightweight metals
Industry AerospaceDefense
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