$HWM · Howmet Aerospace Inc.
Howmet Aerospace reported Q3 2026 results with revenue of $2.70B (+29% YoY), GAAP EPS of $1.42, and Adjusted EPS of $1.46. The Board authorized a $5B increase to the share repurchase program (total $5.397B). FY2026 guidance was raised across revenue, Adjusted EBITDA, Adjusted EPS, and free cash flow. Preliminary FY2027 revenue guidance of ~$11.5B implies ~12% growth.
- Q3 revenue $2.70B, up 29% YoY with 25% organic growth — strongest quarterly growth rate on record
- GAAP EPS $1.42, Adjusted EPS $1.46, up 54% YoY; Adjusted EBITDA margin expanded 310 bps to 32.5%
- Board authorized $5B increase to share repurchase program, bringing total authorization to $5.397B
- FY2026 guidance raised: revenue ~$10.3B, Adjusted EPS $5.49–$5.51, free cash flow $1.95B–$2.05B
- FY2027 preliminary revenue guide ~$11.5B, representing ~12% growth over increased FY2026 guidance
Extended-hours trading at $207.00, up +5.98% vs the regular close of $195.32, reflecting strong positive reaction to the beat-and-raise quarter, massive buyback authorization, and FY2027 revenue guide.
A beat-and-raise quarter paired with a $5B buyback authorization and preliminary FY2027 guidance signals management's exceptional confidence in the multi-year aerospace and gas turbine upcycle.
Howmet's 29% revenue growth and 32% commercial aerospace expansion underscore the sustained aerospace aftermarket and OE upcycle. The 45% gas turbines surge signals market-share gains in a segment where customers are raising volume expectations beyond 2028.
Forward-looking risks cited include potential Middle East conflict impact on spares demand (though management expects none given engine shop visit backlog), tariff and trade policy escalation, and supply chain disruptions. Elevated capex beyond 2027 to support growth could pressure near-term free cash flow conversion.