Howmet Aerospace Reports Third Quarter 2026 Results
Howmet Aerospace Inc. (HWM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 FOR IMMEDIATE RELEASE Investor Contact Media Contact Paul T. Luther Rob Morrison (412) 553-1950 (412) 553-2666 Paul.Luther@howmet.com Rob.Morrison@howmet.com Howmet Aerospace Reports Third Quarter 2026 Results Revenue up 29% Year over Year, Organic Growth 25% ; G AAP
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance are likely to attract buying, especially given the company's strong cash generation and share repurchase program.
Market read
The release provides fresh, material data for a large‑cap industrial stock, creating immediate trading opportunities.
What to watch
Higher capital expenditures beyond 2027 could strain free cash flow if demand softens.
Revenue up 29% Year over Year, Organic Growth 25%; GAAP EPS $1.42, Adjusted EPS $1.46
Third-quarter revenue grew 29%, adjusted EBITDA grew 43%, adjusted EBITDA margin expanded 310 basis points to 32.5%, adjusted EPS grew 54%, and free cash flow grew 33%. The Company increased full-year 2026 guidance and stated that third-quarter results exceeded the high end of guidance.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, third quarter 2026 (Dollars in Millions)GAAP | $2.70B | – | 29 % |
| Organic revenue growth, third quarter 2026non-GAAP | 25 % | – | 25 % |
| Operating income, third quarter 2026 (Dollars in Millions)GAAP | $777M | – | 43 % |
| Operating income margin, third quarter 2026GAAP | 28.7 % | – | 280 bps |
| Net income, third quarter 2026 (in millions)GAAP | $567M | – | – |
| Diluted earnings per share, third quarter 2026GAAP | $ 1.42 | – | 49 % |
| Basic earnings per share, third quarter 2026GAAP | $ 1.42 | – | – |
| Cash from operations, third quarter 2026 (Dollars in Millions)GAAP | $709M | – | 34 % |
| Adjusted EBITDA, third quarter 2026 (Dollars in Millions)non-GAAP | $879M | – | 43 % |
| Adjusted EBITDA margin, third quarter 2026non-GAAP | 32.5 % | – | 310 bps |
| Adjusted operating income, third quarter 2026 (Dollars in Millions)non-GAAP | $786M | – | 45 % |
| Adjusted operating income margin, third quarter 2026non-GAAP | 29.1 % | – | 320 bps |
| Adjusted earnings per share, third quarter 2026non-GAAP | $ 1.46 | – | 54 % |
| Free cash flow, third quarter 2026 (Dollars in Millions)non-GAAP | $562M | – | 33 % |
| Capital expenditures, third quarter 2026 (in U.S. dollar millions)GAAP | $147M | – | – |
| Effective tax rate, third quarter 2026GAAP | 21.4 % | – | – |
| Operational tax rate, third quarter 2026non-GAAP | 20.0 % | – | – |
| Revenue, nine months ended September 30, 2026 (Dollars in Millions)GAAP | $7.56B | – | 24 % |
| Operating income, nine months ended September 30, 2026 (Dollars in Millions)GAAP | $2.24B | – | 44 % |
| Operating income margin, nine months ended September 30, 2026GAAP | 29.6 % | – | 400 bps |
| Net income, nine months ended September 30, 2026 (in millions)GAAP | $1.68B | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $ 4.18 | – | 50 % |
| Cash from operations, nine months ended September 30, 2026 (Dollars in Millions)GAAP | $1.75B | – | 42 % |
| Adjusted EBITDA, nine months ended September 30, 2026 (Dollars in Millions)non-GAAP | $2.44B | – | 38 % |
| Adjusted EBITDA margin, nine months ended September 30, 2026non-GAAP | 32.2 % | – | 320 bps |
| Adjusted operating income, nine months ended September 30, 2026 (Dollars in Millions)non-GAAP | $2.19B | – | 41 % |
| Adjusted operating income margin, nine months ended September 30, 2026non-GAAP | 28.9 % | – | 340 bps |
| Adjusted earnings per share, nine months ended September 30, 2026non-GAAP | $ 4.01 | – | 47 % |
| Free cash flow, nine months ended September 30, 2026 (Dollars in Millions)non-GAAP | $1.4B | – | 55 % |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Engine ProductsGrowth in the commercial aerospace and gas turbines markets. Segment Adjusted EBITDA was $567 million, up 57% year over year, and Segment Adjusted EBITDA margin was 39.1%, up approximately 580 basis points year over year. | $1.45B | – | 33 % |
| Fastening SystemsGrowth in the commercial aerospace and defense aerospace markets. Excluding the CAM and Brunner acquisitions, revenue grew 10%. Segment Adjusted EBITDA was $185 million, up 34% year over year, while margin decreased approximately 140 basis points to 29.4%, reflecting impact from the CAM acquisition. | $630M | – | 41 % |
| Engineered StructuresRevenue was principally affected by the divestiture of the Savannah disk forging facility. Excluding the Savannah divestiture, revenue grew 8%. Segment Adjusted EBITDA was $70 million, up 9% year over year, and margin increased approximately 290 basis points to 23.7%. | $295M | – | (4 )% |
| Forged WheelsHigher volumes in the commercial transportation market and an increase in aluminum cost pass through. Segment Adjusted EBITDA was $86 million, up 18% year over year, while margin decreased approximately 330 basis points to 26.3% due to higher aluminum cost pass through. | $327M | – | 32 % |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Q4 2026 Guidance and FY 2026 Guidance outlook
- RevenueQ4 2026: Low $ 2,740, Baseline $ 2,750, High $ 2,760; FY 2026: Low $ 10,290, Baseline $ 10,300, High $ 10,310
- NoteQ4 2026 Adjusted EBITDA: Low $ 895, Baseline $ 900, High $ 905
- NoteQ4 2026 Adjusted EBITDA Margin: Low 32.7 %, Baseline 32.7 %, High 32.8 %
- NoteQ4 2026 Adjusted Earnings per Share: Low $ 1.49, Baseline $ 1.50, High $ 1.51
- NoteFY 2026 Adjusted EBITDA: Low $ 3,325, Baseline $ 3,330, High $ 3,335
- NoteFY 2026 Adjusted EBITDA Margin: Low 32.3 %, Baseline 32.3 %, High 32.3 %
- NoteFY 2026 Adjusted Earnings per Share: Low $ 5.49, Baseline $ 5.50, High $ 5.51
- NoteFY 2026 Free Cash Flow: Low $ 1,950, Baseline $ 2,000, High $ 2,050
- NoteFY 2026 baseline changes: Revenue +$250; Adjusted EBITDA +$100 and +20 bps; Adjusted Earnings per Share +$0.23; Free Cash Flow +$100
- NoteFull Year 2027 Revenue Guidance: Approximately $11.5 Billion, Up ~12% Year over Year
Capital returns
- Repurchased $500 million of common stock in third quarter 2026 at an average price of $264.77 per share, retiring approximately 1.9 million shares.
- Year to date through October 28, 2026, the Company repurchased $1.1 billion of shares at an average price of $250.72 per share.
- On October 28, 2026, the Board of Directors authorized an increase in the share repurchase program by $5 billion, resulting in $5.397 billion total authorization.
- On July 27, 2026, the Board of Directors declared a dividend of $0.14 per share, which was paid on August 25, 2026.
- The quarterly dividend represents a 17% increase from the second quarter 2026 dividend of $0.12 per share.
What drove it
- Third-quarter revenue was driven by 32% growth in the commercial aerospace market, 10% growth in the defense aerospace market, 45% growth in the gas turbines market, and 28% growth in the commercial transportation market.
- The year-over-year increase in Adjusted EBITDA was driven by growth in commercial aerospace, defense aerospace, gas turbines, and commercial transportation.
- Engine Products absorbed net headcount of approximately 520 in the quarter in support of expected future revenue increases.
- The Company stated that commercial aerospace is underpinned by an aircraft order backlog that supports expected production volume increases throughout 2027 and beyond.
- The Company stated that gas-turbine customers are looking to increase volumes beyond previous expectations.
Concerns
- Engineered Structures revenue decreased 4% year over year, principally driven by the divestiture of the Savannah disk forging facility.
- Fastening Systems Segment Adjusted EBITDA margin decreased approximately 140 basis points year over year to 29.4%, reflecting impact from the CAM acquisition.
- Forged Wheels Segment Adjusted EBITDA margin decreased approximately 330 basis points year over year to 26.3%, due to the impact of higher aluminum cost pass through.
- The Company stated that its capital expenditure plans envisage elevated spend beyond 2027 to support growth in aerospace and defense as well as gas turbines.
- The filing identifies risks including tariff and other trade policies, energy costs, supply-chain disruptions, customer conditions, workforce availability, manufacturing issues, cybersecurity, geopolitical conflict, and the ability to meet increased demand and production targets.
What to watch
- Q4 2026 revenue guidance of $ 2,740 to $ 2,760 and FY 2026 revenue guidance of $ 10,290 to $ 10,310.
- Q4 2026 Adjusted EBITDA margin guidance of 32.7 % to 32.8 % and FY 2026 Adjusted EBITDA margin guidance of 32.3 %.
- Execution against FY 2026 free cash flow guidance of $ 1,950 to $ 2,050 amid capital expenditures.
- Whether commercial aerospace production, defense spares demand, gas turbine customer volumes, and commercial transportation recovery continue to support growth.
- The effect of CAM and Brunner acquisitions on Fastening Systems revenue and margin.
- The Company’s approximately $11.5 Billion full-year 2027 revenue outlook and its stated approximately 12% year-over-year growth.
Balance sheet and cash flow
- Cash and cash equivalents were $ 507 at September 30, 2026, compared with $ 742 at December 31, 2025.
- Total assets were $ 13,280 at September 30, 2026, compared with $ 11,179 at December 31, 2025.
- Short-term borrowings were $ 390 at September 30, 2026, compared with $ — at December 31, 2025.
- Long-term debt, less amount due within one year, was $ 4,052 at September 30, 2026, compared with $ 2,859 at December 31, 2025.
- The Company paid down $60 million of borrowings on its commercial paper program in the third quarter 2026. At the end of the quarter, $390 million of the $1 billion commercial paper program was outstanding.
- Nine-month cash provided from operations was $ 1,745, compared with $ 1,230 in 2025.
- Nine-month capital expenditures were $ 345, compared with $ 329 in 2025.
- Nine-month acquisitions, net of cash acquired, were $ 1,929, compared with $ — in 2025.
- Nine-month proceeds from the sale of assets and businesses were $ 226, compared with $ 9 in 2025.
- Nine-month repurchases of common stock were $ 1,100, compared with $ 500 in 2025.
- Nine-month dividends paid to shareholders were $ 153, compared with $ 131 in 2025.
- Cash, cash equivalents and restricted cash at end of period were $ 508, compared with $ 660 in 2025.
Analysis
Howmet reported a strong third quarter, with revenue of $ 2,703 million, up 29% year over year, and organic revenue growth of 25%. GAAP operating income increased 43% to $ 777 million, while GAAP operating income margin expanded 280 basis points to 28.7%. GAAP diluted EPS rose 49% to $ 1.42, and adjusted EPS rose 54% to $ 1.46. The Company stated that the quarter exceeded the high end of guidance.
Growth was broad across end markets. The Company cited 32% commercial aerospace growth, 10% defense aerospace growth, 45% gas turbines growth, and 28% commercial transportation growth. Engine Products delivered $ 1,451 million of third-party sales and a 39.1% Segment Adjusted EBITDA margin. Fastening Systems grew 41%, including acquisition contributions, while its 29.4% margin reflected the CAM acquisition. Engineered Structures declined 4% because of the Savannah divestiture but grew 8% excluding that divestiture. Forged Wheels revenue grew 32%, though aluminum cost pass through reduced its margin to 26.3%.
Profitability and cash generation improved substantially. Adjusted EBITDA increased 43% to $ 879 million and adjusted EBITDA margin expanded 310 basis points to 32.5%. Third-quarter cash from operations was $ 709 million, and free cash flow was $ 562 million after $ 147 million in capital expenditures. For the first nine months, free cash flow was $ 1,400 million, up 55%, while capital expenditures were $ 345 million. The Company said it expects elevated capital expenditure beyond 2027 while maintaining focus on free cash flow conversion.
Capital allocation included $500 million of third-quarter common-stock repurchases and $1.1 billion repurchased year to date through October 28, 2026. The Board increased the repurchase authorization by $5 billion to $5.397 billion total authorization, and the quarterly dividend increased 17% to $0.14 per share. The Company also paid down $60 million of commercial paper borrowings during the quarter, though short-term borrowings were $ 390 million and long-term debt was $ 4,052 million at September 30, 2026.
Management increased FY 2026 guidance, including a revenue baseline of $ 10,300, adjusted EBITDA baseline of $ 3,330, adjusted EPS baseline of $ 5.50, and free-cash-flow baseline of $ 2,000. Q4 revenue guidance is $ 2,740 to $ 2,760, and Q4 adjusted EBITDA margin guidance is 32.7% to 32.8%. The Company also provided full-year 2027 revenue guidance of approximately $11.5 billion, representing approximately 12% growth from increased 2026 guidance. The filing attributes the outlook to commercial aerospace backlog, solid defense markets, strengthening gas-turbine demand, and North American commercial transportation recovery.
Management, verbatim
Howmet's performance was solid in all dimensions, with third quarter results exceeding the high end of guidance.
John Plant, Executive Chairman and Chief Executive Officer
Revenue grew 29% year over year and 25% organically, the strongest quarterly growth rate on record for Howmet.
John Plant, Executive Chairman and Chief Executive Officer
Looking forward to 2027, we envisage revenue of approximately $11.5 billion, representing approximately 12% growth from the increased 2026 guidance.
John Plant, Executive Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Gross profit and gross margin were not reported.
- Forward guidance for gross margin, operating expenses, and tax rate was not reported.
- Previous-release outlook was not provided, so a comparison of reported results with prior guidance cannot be made.
- Year-over-year changes for GAAP net income, basic EPS, capital expenditures, effective tax rate, and operational tax rate were not explicitly reported.
- Sequential percentage changes were not explicitly reported for the reported metrics.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Howmet Aerospace (NYSE:HWM) filed a Form 8‑K reporting its third‑quarter 2026 financial results and updated guidance.
Ticker impact
Howmet Aerospace reported Q3 2026 results with revenue up 29% YoY, adjusted EPS $1.46 and raised full-year 2027 revenue guidance to $11.5B.
likely upward pressure as investors price in the raised guidance and robust cash flow.
The company exceeded prior guidance, posted significant top‑line growth and increased its 2027 revenue outlook, which typically drives buying interest.
Market effects
Aerospace and defense suppliers may see spillover optimism from Howmet's strong performance.
U.S. industrial sector gains as a large-cap aerospace component maker reports robust growth.
Global aerospace supply chain confidence is reinforced, supporting related equities worldwide.
Counterpoint
If the guidance assumes continued high demand, any slowdown in commercial aircraft orders could pressure the stock.
Key entities
- CompanyHowmet Aerospace
Aerospace and defense component manufacturer.
