Howmet Aerospace (NYSE:HWM) Announces Earnings Results, Beats Estimates By $0.09 EPS

Key Points

• Howmet Aerospace beat quarterly expectations: Q2 revenue rose 24% year over year to $2.547 billion, while EPS of $1.33 exceeded the $1.24 consensus estimate. Adjusted EBITDA grew 39% to $817 million, with margins expanding to 32.1%.
• Management raised its 2026 outlook: Full-year adjusted EPS guidance increased to $5.23–$5.31, with revenue projected at approximately $10.0–$10.1 billion. Strong demand in commercial aerospace, defense and industrial gas turbines is supporting the outlook.
• Capital returns improved, but risks remain: Howmet raised its quarterly dividend 17% to $0.14 and continued share repurchases, while the CAM Fastener acquisition remains margin-dilutive and transportation volumes declined. The stock’s elevated valuation, with a P/E above 67, leaves limited room for disappointment.

Howmet Aerospace (NYSE:HWM - Get Free Report) issued its earnings results on Thursday. The company reported $1.33 EPS for the quarter, beating the consensus estimate of $1.24 by $0.09, FiscalAI reports. Howmet Aerospace had a net margin of 20.23% and a return on equity of 29.27%. Howmet Aerospace's revenue was up 24.1% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.91 earnings per share. Howmet Aerospace updated its Q3 2026 guidance to 1.340-1.360 EPS and its FY 2026 guidance to 5.230-5.310 EPS.

Here are the key takeaways from Howmet Aerospace's conference call:

• Q2 results exceeded guidance: Revenue rose 24% year over year, organic growth reached 21%, EBITDA increased 39%, and adjusted EPS grew 46% to $1.33, supported by a 340-basis-point expansion in EBITDA margin.
• Howmet raised its full-year outlook to approximately $10.05 billion in revenue, $3.23 billion of EBITDA, $5.27 of adjusted EPS, and $1.9 billion of free cash flow. Management expects 2027 revenue to increase further.
• Demand remains strong across commercial aerospace, defense, and industrial gas turbines, with total spares revenue up 37% and gas turbine demand benefiting from electricity needs tied to data centers. Howmet is increasing capital spending beyond $500 million in 2026 and expects another significant step-up in 2027 to support growth.
• Capital returns continued through $800 million of year-to-date share repurchases, a 17% dividend increase, and debt reduction. Management expects leverage to return to approximately 1.0 times net debt to EBITDA by year-end while retaining flexibility for additional bolt-on acquisitions.
• The CAM Fastener acquisition is currently dilutive to margins and is expected to be roughly breakeven to EPS in 2026, with most synergies anticipated in 2027. Commercial transportation wheel volumes were down 8% year over year, while higher aluminum pass-through is expected to continue pressuring reported margins for the next several quarters.

Howmet Aerospace Stock Down 0.8%

Shares of Howmet Aerospace stock traded down $2.46 during trading on Thursday, reaching $288.96. The stock had a trading volume of 3,274,828 shares, compared to its average volume of 2,624,290. The company has a market capitalization of $115.61 billion, a price-to-earnings ratio of 67.04, a P/E/G ratio of 2.26 and a beta of 1.20. The stock has a fifty day moving average price of $271.75 and a two-hundred day moving average price of $253.31. Howmet Aerospace has a 52 week low of $169.45 and a 52 week high of $310.00. The company has a current ratio of 2.44, a quick ratio of 1.59 and a debt-to-equity ratio of 0.73.

Howmet Aerospace Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, August 25th. Shareholders of record on Friday, August 7th will be paid a $0.14 dividend. The ex-dividend date of this dividend is Friday, August 7th. This represents a $0.56 annualized dividend and a dividend yield of 0.2%. This is a positive change from Howmet Aerospace's previous quarterly dividend of $0.12. Howmet Aerospace's dividend payout ratio (DPR) is 12.99%.

Insider Activity

In related news, EVP Neil Edward Marchuk sold 41,932 shares of the stock in a transaction dated Monday, May 11th. The stock was sold at an average price of $269.50, for a total transaction of $11,300,674.00. Following the completion of the transaction, the executive vice president directly owned 65,105 shares in the company, valued at approximately $17,545,797.50. This trade represents a 39.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders own 0.85% of the company's stock.

Institutional Investors Weigh In On Howmet Aerospace

Several institutional investors have recently bought and sold shares of the company. Mcguire Capital Advisors Inc. bought a new stake in shares of Howmet Aerospace in the fourth quarter worth $28,000. Compound Planning Inc. lifted its position in Howmet Aerospace by 2.3% during the 4th quarter. Compound Planning Inc. now owns 8,013 shares of the company's stock worth $1,643,000 after buying an additional 181 shares in the last quarter. Axxcess Wealth Management LLC lifted its position in Howmet Aerospace by 59.2% during the 4th quarter. Axxcess Wealth Management LLC now owns 17,084 shares of the company's stock worth $3,503,000 after buying an additional 6,352 shares in the last quarter. Corient Private Wealth LLC boosted its stake in shares of Howmet Aerospace by 115.8% during the 4th quarter. Corient Private Wealth LLC now owns 97,380 shares of the company's stock worth $19,965,000 after buying an additional 52,246 shares during the last quarter. Finally, Strive Financial Group LLC acquired a new position in shares of Howmet Aerospace during the 4th quarter worth about $99,000. Institutional investors own 90.46% of the company's stock.

Key Howmet Aerospace News

Here are the key news stories impacting Howmet Aerospace this week:

• Positive Sentiment: Q2 results exceeded expectations: Revenue rose 24% year over year to $2.547 billion, while GAAP EPS increased to $1.33 from $1.00 and topped the $1.24 consensus estimate. Organic growth was 21%, supported by aerospace and gas-turbine demand. Howmet Aerospace Reports Second Quarter 2026 Results
• Positive Sentiment: Profitability and cash flow improved substantially: Adjusted EBITDA increased 39% to $817 million, with the margin expanding to 32.1%. Operating cash flow rose 31% to $583 million and free cash flow increased 39% to $479 million. Howmet also repurchased $300 million of stock and raised its quarterly dividend 17% to $0.14 per share. Howmet Aerospace Stock Hits New High as Earnings, Guidance, Cash Flow Impress
• Positive Sentiment: Full-year guidance was raised above Wall Street estimates: Howmet now expects 2026 EPS of $5.23-$5.31 versus consensus of $5.06 and revenue of $10.0-$10.1 billion versus an approximately $9.7 billion estimate. Third-quarter EPS guidance of $1.34-$1.36 also exceeds the $1.26 consensus. HWM Q2 Earnings Beat Estimates on Aerospace, Turbine Growth
• Neutral Sentiment: Management highlighted rising aircraft production as a key demand driver. Howmet also completed its roughly $1.8 billion CAM acquisition and reduced annualized interest expense by approximately $12 million through debt repayment and a currency swap. Howmet Aerospace Q2 2026 Earnings Call Transcript
• Negative Sentiment: Investors still face transportation and supply-chain headwinds, while HWM trades at a historically elevated valuation, with the provided P/E ratio above 67. That valuation leaves less room for disappointment despite the strong outlook.

Analysts Set New Price Targets

Several analysts recently commented on the company. BNP Paribas Exane reaffirmed an "outperform" rating and set a $340.00 price objective (up from $265.00) on shares of Howmet Aerospace in a research note on Friday, May 8th. UBS Group increased their price target on Howmet Aerospace from $260.00 to $290.00 and gave the stock a "neutral" rating in a report on Friday, May 8th. Citigroup raised their price target on Howmet Aerospace from $303.00 to $311.00 and gave the stock a "buy" rating in a research report on Wednesday, July 1st. Susquehanna lifted their price objective on Howmet Aerospace from $300.00 to $330.00 and gave the company a "positive" rating in a report on Friday, May 8th. Finally, Weiss Ratings lowered Howmet Aerospace from a "buy (b)" rating to a "buy (b-)" rating in a research report on Wednesday. Sixteen equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $300.33.

Howmet Aerospace Company Profile

Howmet Aerospace Inc is an industrial technology company that designs, manufactures and repairs engineered metal products for the aerospace, transportation and industrial markets. Its product portfolio includes precision castings and forgings, engineered fasteners, seamless rolled rings, and complex components for turbine engines, airframes and industrial gas turbines. The company also provides aftermarket services such as component repair, overhaul and parts distribution to support the operating fleet of commercial and military customers.

Howmet serves a global customer base of original equipment manufacturers (OEMs) and aftermarket operators, with manufacturing, service and distribution facilities across North America, Europe and Asia.

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