Howmet Aerospace (HWM) Earnings Date & Reports

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 (generally accepted accounting principles) diluted EPS was $1.42.
• Revenue, EBITDA (earnings before interest, taxes, depreciation, and amortization) 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.
• For more detail on Howmet Aerospace, explore its Major News, Today's Price Move, Price Targets, and Forecast pages.
• Looking for automated trade ideas across the market? Explore Tickeron's Trending AI Robots to see AI-driven strategies in action.

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.

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.

AI Screener

Tickeron's AI Screener is an AI-powered stock and ETF discovery tool designed to help traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener helps identify trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening, saving time while surfacing signals that might otherwise be missed. Explore the AI Screener to see how it can sharpen your research workflow.

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.

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.

Disclaimers and Limitations