Howmet Aerospace (NYSE:HWM) Issues Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Howmet Aerospace (NYSE:HWM - Get Free Report) released its earnings results on Thursday. The company reported $1.22 EPS for the quarter, topping the consensus estimate of $1.11 by $0.11, FiscalAI reports. Howmet Aerospace had a return on equity of 30.41% and a net margin of 18.27%.The business had revenue of $2.31 billion during the quarter, compared to analysts' expectations of $2.24 billion. During the same quarter last year, the firm posted $0.86 earnings per share. The firm's revenue was up 19.1% on a year-over-year basis. Howmet Aerospace updated its FY 2026 guidance to 4.880-5.000 EPS and its Q2 2026 guidance to 1.220-1.240 EPS.

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

• Howmet reported a very strong Q1 with $2.31B sales, $740M adjusted EBITDA (a 32% margin, +320 bps YoY), $1.22 EPS, and record Q1 free cash flow of $359M, enabling $450M of share repurchases in Q1–April.
• Management raised confidence for 2026 and provided guidance of $9.65B revenue, $3.06B EBITDA and $1.75B free cash flow, noting full‑year organic growth (ex M&A) has been increased to ~14%.
• Strategic portfolio moves: closed the CAM fastener acquisition (~$1.8B) and Brunner (~$120M), sold the Savannah disc forgings for $230M—CAM expands fastener offerings and adds ~ $275M revenue / ~$60M EBITDA for 2026 but was debt‑funded, taking net leverage to ~1.6x with management targeting rapid deleveraging.
• End‑market trends remain strong—commercial aerospace (+20% overall; engine spares +48%), gas turbines (+39%), and defense (+10%) drove performance, with spares now ~23% of company revenue, and continued CapEx to scale engine/gas turbine capacity.
• Management flagged macro risks from the Iran situation and related oil‑price shock, which could increase inflation, interest‑rate and FX volatility and create downside uncertainty for demand and supply chains.

Howmet Aerospace Stock Up 6.2%

Shares of HWM stock traded up $15.96 during trading hours on Thursday, reaching $272.39. The company had a trading volume of 5,793,099 shares, compared to its average volume of 2,559,983. Howmet Aerospace has a 12 month low of $154.72 and a 12 month high of $280.74. The company has a debt-to-equity ratio of 0.53, a current ratio of 2.13 and a quick ratio of 1.09. The business has a fifty day simple moving average of $245.66 and a 200-day simple moving average of $222.97. The company has a market cap of $109.15 billion, a price-to-earnings ratio of 73.42, a price-to-earnings-growth ratio of 2.24 and a beta of 1.19.

Howmet Aerospace Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, May 26th. Stockholders of record on Friday, May 8th will be issued a $0.12 dividend. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.2%. The ex-dividend date is Friday, May 8th. Howmet Aerospace's dividend payout ratio (DPR) is currently 12.94%.

Key Headlines Impacting Howmet Aerospace

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

• Positive Sentiment: Q1 results: Howmet reported adjusted EPS $1.22 on revenue $2.31B, with organic revenue +19% YoY, stronger margins and record cash generation; management said results exceeded the high end of guidance — a clear operational beat that supports a higher valuation. Howmet Aerospace Reports First Quarter 2026 Results
• Positive Sentiment: Guidance raised: HWM increased FY26 EPS guidance to $4.880–5.000 (vs. consensus ~4.64) and Q2 EPS to $1.220–1.240 (vs. consensus ~1.16). Higher guidance is a primary driver of the stock’s move. Howmet's Q1 Earnings Beat Estimates on Commercial Aerospace Growth
• Positive Sentiment: Capital allocation & cash flow: strong free cash flow (reported sizable FCF and $453M cash from ops), $300M deployed to buybacks, and a $230M non-core asset sale — supports share repurchases and shareholder returns. Howmet Aerospace Reports First Quarter 2026 Results
• Positive Sentiment: Acquisition activity: closed the Consolidated Aerospace Manufacturing (CAM) acquisition (~$1.8B) and secured financing — expands footprint in critical aerospace components and supports growth thesis. Howmet Aerospace Reports First Quarter 2026 Results
• Neutral Sentiment: Earnings presentation & call materials are available for investors reviewing detail on segment performance, margins and outlook (useful for modeling and conference-call follow-up). Howmet Aerospace Inc. 2026 Q1 - Results - Earnings Call Presentation
• Neutral Sentiment: Street coverage / technical interest: media and investor outlets flagged HWM as an IBD-50 stock to watch into earnings, which can increase flows and volatility but is not a fundamental catalyst by itself. IBD 50 stocks to watch: Defense leader Howmet Aerospace eyes buy point with earnings imminent
• Neutral Sentiment: Leadership hire: appointment of Jonathan Arena as EVP, Chief Legal & Compliance Officer is governance/ops-related and unlikely to move the stock materially but removes an execution risk. Howmet Aerospace (HWM) Appoints Jonathan Arena as Executive VP and Chief Legal Officer
• Negative Sentiment: Conflicting headlines: some outlets circulated articles reporting an earnings “miss” (likely comparing a different GAAP metric or earlier data), creating short-term headline noise and possible confusion for investors; verify adjusted vs. GAAP numbers when modeling. Howmet (HWM) Q1 Earnings Miss Estimates

Analyst Ratings Changes

Several equities research analysts recently commented on the company. BTIG Research reaffirmed a "buy" rating and set a $275.00 target price on shares of Howmet Aerospace in a research note on Tuesday, March 17th. Wolfe Research set a $270.00 price objective on Howmet Aerospace and gave the company an "outperform" rating in a research note on Wednesday, March 11th. Citigroup reduced their price objective on Howmet Aerospace from $283.00 to $271.00 and set a "buy" rating for the company in a research note on Thursday, April 2nd. Truist Financial set a $280.00 price objective on Howmet Aerospace in a research note on Wednesday, March 11th. Finally, Sanford C. Bernstein reissued an "outperform" rating and issued a $280.00 price objective on shares of Howmet Aerospace in a research note on Tuesday, February 17th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $266.89.

Insider Buying and Selling

In other news, VP Barbara Lou Shultz sold 1,000 shares of the firm's stock in a transaction that occurred on Thursday, February 26th. The stock was sold at an average price of $260.00, for a total value of $260,000.00. Following the transaction, the vice president owned 23,874 shares in the company, valued at $6,207,240. This trade represents a 4.02% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Neil Edward Marchuk sold 45,150 shares of the firm's stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $251.70, for a total value of $11,364,255.00. Following the completion of the transaction, the executive vice president owned 107,008 shares in the company, valued at $26,933,913.60. This represents a 29.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.85% of the stock is owned by company insiders.

Institutional Trading of Howmet Aerospace

A number of hedge funds have recently bought and sold shares of HWM. Brighton Jones LLC lifted its holdings in Howmet Aerospace by 5.4% during the fourth quarter. Brighton Jones LLC now owns 2,548 shares of the company's stock worth $279,000 after acquiring an additional 130 shares during the period. Acadian Asset Management LLC bought a new stake in Howmet Aerospace during the first quarter worth $399,000. Sivia Capital Partners LLC bought a new stake in Howmet Aerospace during the second quarter worth $216,000. Brown Advisory Inc. lifted its holdings in Howmet Aerospace by 31.0% during the second quarter. Brown Advisory Inc. now owns 4,180 shares of the company's stock worth $778,000 after acquiring an additional 990 shares during the period. Finally, Cary Street Partners Financial LLC bought a new stake in Howmet Aerospace during the second quarter worth $145,000. 90.46% of the stock is currently owned by institutional investors.

About Howmet Aerospace

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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