Howmet Aerospace (NYSE:HWM) Reaches New 1-Year High Following Better-Than-Expected Earnings

Key Points

• Howmet Aerospace beat quarterly expectations: EPS was $1.33 versus the $1.24 consensus, while revenue rose 24.1% year over year to $2.55 billion. Shares reached a new 52-week high of $310.
• Management raised its 2026 outlook to $5.23–$5.31 in EPS and guided for third-quarter EPS of $1.34–$1.36, supported by strong commercial aerospace and gas-turbine demand.
• The company increased its quarterly dividend 17% to $0.14 per share and repurchased $300 million of stock, though investors will monitor supply-chain issues, transportation weakness and the CAM acquisition integration.

Howmet Aerospace Inc. (NYSE:HWM - Get Free Report) shares hit a new 52-week high during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $310.00 and last traded at $301.3860, with a volume of 357276 shares trading hands. The stock had previously closed at $291.42.

The company reported $1.33 EPS for the quarter, beating analysts' consensus estimates of $1.24 by $0.09. The company had revenue of $2.55 billion during the quarter, compared to the consensus estimate of $2.43 billion. Howmet Aerospace had a net margin of 20.23% and a return on equity of 29.27%. The company's quarterly revenue was up 24.1% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.91 EPS. Howmet Aerospace has set its Q3 2026 guidance at 1.340-1.360 EPS and its FY 2026 guidance at 5.230-5.310 EPS.

Howmet Aerospace Increases Dividend

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

Key Stories Impacting Howmet Aerospace

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

• Positive Sentiment: Q2 earnings and revenue beat estimates. Howmet reported adjusted and GAAP EPS of $1.33, exceeding the $1.24 consensus, while revenue rose 24% year over year to $2.547 billion versus expectations of $2.43 billion. Organic growth was 21%. Howmet Aerospace Reports Second Quarter 2026 Results
• Positive Sentiment: Profitability and cash flow improved substantially. Operating margin expanded 250 basis points to 27.9%, adjusted EBITDA increased 39% to $817 million, operating cash flow rose 31% to $583 million, and free cash flow jumped 39% to $479 million. Howmet Aerospace Inc. Q2 2026 Earnings
• Positive Sentiment: Management raised its full-year and near-term forecasts. Full-year 2026 EPS guidance increased to $5.23-$5.31, above the $5.06 consensus, with revenue projected at $10.0-$10.1 billion. Third-quarter EPS guidance of $1.34-$1.36 and revenue guidance of approximately $2.6 billion also exceed analyst expectations. Howmet Aerospace rises on earnings beat, gas-turbine demand
• Positive Sentiment: Capital returns and balance-sheet actions added support. Howmet repurchased $300 million of common stock, raised its quarterly dividend 17% to $0.14 per share, and reduced annualized interest expense by $12 million through debt repayment and a currency swap. The company also completed its approximately $1.8 billion CAM acquisition, which may broaden growth opportunities. Howmet: Q2 Earnings Snapshot
• Neutral Sentiment: Commercial aerospace and gas-turbine demand remain key growth drivers, but investors will continue monitoring transportation weakness, supply-chain constraints and the execution of the CAM integration. HWM also trades near its 12-month high at a valuation above historical market averages, leaving less room for execution disappointments.

Analysts Set New Price Targets

Several brokerages have recently weighed in on HWM. Morgan Stanley restated an "overweight" rating and issued a $315.00 target price on shares of Howmet Aerospace in a research note on Friday, May 8th. JPMorgan Chase & Co. lifted their price target on shares of Howmet Aerospace from $265.00 to $310.00 and gave the stock an "overweight" rating in a research note on Monday, May 11th. UBS Group boosted their price objective on shares of Howmet Aerospace from $260.00 to $290.00 and gave the stock a "neutral" rating in a report on Friday, May 8th. TD Cowen upped their price objective on shares of Howmet Aerospace from $300.00 to $320.00 and gave the company a "buy" rating in a research report on Monday, July 13th. Finally, BTIG Research raised their target price on Howmet Aerospace from $275.00 to $300.00 and gave the company a "buy" rating in a research note on Friday, May 8th. Sixteen research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, Howmet Aerospace presently has an average rating of "Moderate Buy" and an average price target of $300.33.

Insider Buying and Selling at Howmet Aerospace

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

Hedge Funds Weigh In On Howmet Aerospace

Several large investors have recently added to or reduced their stakes in the company. Universal Beteiligungs und Servicegesellschaft mbH lifted its stake in Howmet Aerospace by 8.2% during the fourth quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 475,814 shares of the company's stock valued at $96,916,000 after buying an additional 36,195 shares in the last quarter. M&T Bank Corp lifted its position in shares of Howmet Aerospace by 75.0% in the 4th quarter. M&T Bank Corp now owns 42,975 shares of the company's stock valued at $8,810,000 after acquiring an additional 18,417 shares in the last quarter. MUFG Securities EMEA plc boosted its stake in Howmet Aerospace by 752.6% in the 4th quarter. MUFG Securities EMEA plc now owns 65,783 shares of the company's stock worth $13,487,000 after purchasing an additional 58,067 shares during the period. Sequoia Financial Advisors LLC boosted its stake in Howmet Aerospace by 57.5% in the 4th quarter. Sequoia Financial Advisors LLC now owns 14,190 shares of the company's stock worth $2,909,000 after purchasing an additional 5,181 shares during the period. Finally, Zurcher Kantonalbank Zurich Cantonalbank grew its position in Howmet Aerospace by 9.8% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 315,508 shares of the company's stock worth $64,685,000 after purchasing an additional 28,217 shares in the last quarter. 90.46% of the stock is currently owned by institutional investors.

Howmet Aerospace Stock Performance

The firm's 50 day simple moving average is $271.75 and its 200-day simple moving average is $253.31. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.59 and a current ratio of 2.44. The company has a market capitalization of $120.47 billion, a price-to-earnings ratio of 69.87, a P/E/G ratio of 2.26 and a beta of 1.20.

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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