Key Highlights

  • Adjusted EPS of USD 1.46 rose 54% and beat the USD 1.37 consensus estimate, while GAAP EPS was USD 1.42.
  • Revenue of USD 2.70 billion grew 29% and organically 25%, above the consensus estimate of USD 2.59 billion.
  • Adjusted EBITDA reached USD 879 million, and the Margin expanded 310 basis points to 32.5%.
  • The board added USD 5 billion to Buybacks after USD 500 million repurchased and USD 562 million free cash flow.

Howmet Aerospace Inc. (NYSE:HWM) reported third quarter 2026 adjusted Earnings Per Share of USD 1.46, ahead of a consensus estimate of USD 1.37 and up 54% from USD 0.95 a year earlier. GAAP earnings per share were USD 1.42, up 49%. Revenue of USD 2.70 billion exceeded the consensus estimate of USD 2.59 billion and grew 29% from USD 2.09 billion, with organic growth of 25%.

Executive Chairman and Chief Executive Officer John Plant said results exceeded the high end of guidance and marked the fastest Quarterly Revenue Growth on record for the company. GAAP Operating Income rose 43% to USD 777 million at a 28.7% margin, and cash from operations was USD 709 million, up 34%.

Market and Segment Detail

By end market, commercial aerospace revenue grew 32%, defense aerospace 10%, gas turbines 45% and commercial transportation 28%. Engine Products sales rose 33% to USD 1.45 billion, and segment adjusted EBITDA climbed 57% to USD 567 million at a 39.1% margin, up about 580 basis points. The segment added net headcount of about 520 during the quarter.

Fastening Systems sales rose 41% to USD 630 million, or 10% excluding the CAM and Brunner acquisitions, with margin down 140 basis points to 29.4% because of the CAM deal. Engineered Structures sales dipped 4% to USD 295 million after the Savannah disk forging divestiture, though they rose 8% excluding it, and margin widened to 23.7%. Forged Wheels sales grew 32% to USD 327 million on Volume and aluminum cost pass through, with margin at 26.3%, down 330 basis points.

Guidance Raised and Capital Returns

Full year 2026 guidance now calls for revenue of USD 10.29 billion to USD 10.31 billion, adjusted EBITDA of USD 3.325 billion to USD 3.335 billion, adjusted EPS of USD 5.49 to USD 5.51 and free Cash Flow of USD 1.95 billion to USD 2.05 billion. Baselines rose by USD 250 million for revenue, USD 100 million for adjusted EBITDA, USD 0.23 for adjusted EPS and USD 100 million for free cash flow. For 2027 the company envisions revenue of approximately USD 11.5 billion, about 12% above the increased 2026 baseline.

The company repurchased USD 500 million of stock at an average price of USD 264.77, retiring about 1.9 million shares, and USD 1.1 billion year to date. On October 28, 2026 the board raised the authorization by USD 5 billion to a total of USD 5.397 billion. The quarterly Dividend rose 17% to USD 0.14 per share, and USD 390 million of a USD 1 billion Commercial Paper program was outstanding after a USD 60 million paydown.

Data Points Behind the Next Report

The fourth quarter guidance gives the nearest yardsticks: revenue of USD 2.74 billion to USD 2.76 billion, adjusted EBITDA of USD 895 million to USD 905 million and adjusted EPS of USD 1.49 to USD 1.51. Gas turbines, growing 45% this quarter, is the second item, with management saying customers are seeking volumes beyond prior plans.

The third item is capital intensity, since capital expenditures were USD 147 million in the quarter and the chief executive described elevated spending beyond 2027. The fourth is the USD 5.397 billion repurchase authorization against USD 1.1 billion bought year to date.