Howmet Aerospace (NYSE:HWM) Announces Quarterly Earnings Results

Howmet Aerospace (NYSE:HWM) released its quarterly earnings data on Thursday. The company reported $1.33 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.24 by $0.09, FiscalAI reports. Howmet Aerospace had a return on equity of 29.27% and a net margin of 20.23%.During the same period last year, the business earned $0.91 EPS. The firm’s quarterly revenue was up 24.1% compared to the same quarter last year. 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 Performance

HWM stock traded down $2.46 during trading hours on Thursday, hitting $288.96. 3,274,828 shares of the stock were exchanged, compared to its average volume of 1,978,227. The company has a current ratio of 2.44, a quick ratio of 1.59 and a debt-to-equity ratio of 0.73. The firm has a market capitalization of $115.61 billion, a P/E ratio of 67.04, a P/E/G ratio of 2.29 and a beta of 1.20. The company has a 50-day simple moving average of $272.33 and a two-hundred day simple moving average of $253.76. Howmet Aerospace has a 12 month low of $169.45 and a 12 month high of $310.00.

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 issued a $0.14 dividend. The ex-dividend date of this dividend is Friday, August 7th. This represents a $0.56 dividend on an annualized basis and a yield of 0.2%. This is a positive change from Howmet Aerospace’s previous quarterly dividend of $0.12. Howmet Aerospace’s payout ratio is currently 11.14%.

More Howmet Aerospace News

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

• Positive Sentiment: Results exceeded expectations. Howmet reported revenue of $2.547 billion, up 24% year over year, and adjusted EPS of $1.33 versus the $1.24 consensus estimate. Adjusted EPS increased 46% from $0.91 a year earlier, while adjusted EBITDA rose 39% and margins expanded. Howmet Aerospace Reports Second Quarter 2026 Results
• Positive Sentiment: Aerospace and gas-turbine demand remain strong. Rising commercial jet production and robust demand for turbine components supported 21% organic growth, reinforcing expectations for continued strength in Howmet’s core aerospace businesses. HWM Q2 Earnings Beat Estimates on Aerospace, Turbine Growth
• Positive Sentiment: Management raised guidance above Wall Street forecasts. Full-year 2026 EPS is now projected at $5.23-$5.31 and revenue at $10.0-$10.1 billion, compared with consensus estimates of $5.06 and $9.7 billion. Third-quarter EPS guidance of $1.34-$1.36 also exceeds the $1.26 consensus. Howmet Aerospace boosts 2026 forecasts
• Positive Sentiment: Cash returns and financial execution improved. Operating cash flow rose 31% to $583 million, free cash flow increased 39% to $479 million, and the company repurchased $300 million of stock. Howmet also raised its quarterly dividend 17% and reduced interest expense through debt refinancing actions. Howmet Aerospace Q2 2026 Earnings Call Transcript
• Negative Sentiment: Valuation and execution risks remain. HWM trades near its 52-week high at a high earnings multiple, leaving less room for disappointment. Investors will also monitor transportation weakness, supply-chain constraints and the integration of the $1.8 billion CAM acquisition.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on the company. TD Cowen raised their price target on Howmet Aerospace from $300.00 to $320.00 and gave the company a “buy” rating in a report on Monday, July 13th. BTIG Research upped their price objective on shares of Howmet Aerospace from $275.00 to $300.00 and gave the company a “buy” rating in a report on Friday, May 8th. JPMorgan Chase & Co. increased their price objective on shares of Howmet Aerospace from $265.00 to $310.00 and gave the company an “overweight” rating in a research report on Monday, May 11th. Weiss Ratings cut shares of Howmet Aerospace from a “buy (b)” rating to a “buy (b-)” rating in a research note on Wednesday. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating and set a $318.00 target price on shares of Howmet Aerospace in a report on Tuesday, June 16th. Sixteen investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $300.33.

Insider Activity

In other news, EVP Neil Edward Marchuk sold 41,932 shares of the business’s stock in a transaction dated Monday, May 11th. The shares were 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 owned 65,105 shares of the company’s stock, valued at approximately $17,545,797.50. The trade was a 39.18% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Insiders own 0.85% of the company’s stock.

Institutional Trading of Howmet Aerospace

Hedge funds and other institutional investors have recently bought and sold shares of the business. Price T Rowe Associates Inc. MD grew its position in Howmet Aerospace by 27.0% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 16,632,206 shares of the company’s stock worth $3,409,936,000 after acquiring an additional 3,531,700 shares during the last quarter. Federated Hermes Inc. raised its position in Howmet Aerospace by 45.5% in the fourth quarter. Federated Hermes Inc. now owns 1,561,474 shares of the company’s stock valued at $320,133,000 after purchasing an additional 488,169 shares during the last quarter. Worldquant Millennium Advisors LLC acquired a new stake in shares of Howmet Aerospace during the second quarter valued at about $64,565,000. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Howmet Aerospace by 13.3% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,752,280 shares of the company’s stock valued at $564,272,000 after purchasing an additional 323,206 shares in the last quarter. Finally, Jain Global LLC bought a new stake in shares of Howmet Aerospace during the fourth quarter worth about $63,224,000. Institutional investors and hedge funds own 90.46% of the company’s stock.

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.