Key Highlights

  • HWM shares traded down 5.39% to $208.17, versus a prior close of $220.03.
  • RBC cut its target to $300 from $350 with an Outperform rating.
  • Shares are down roughly 21% over the past 90 days.
  • Full-year 2026 revenue guidance is $10.05 billion, plus or minus $50 million.
  • Third-quarter results are due October 29 before the market opens.

Sector Read-Through Pressures Howmet Without Company-Specific News

Howmet Aerospace (NYSE:HWM) shares traded down 5.39% to $208.17 in what looks like a sector read-through rather than company-specific news. Aerospace peer GE Aerospace (NYSE:GE) slid after a third-quarter beat and raised guidance, which suggests investors are taking profits in richly valued suppliers.

RBC cut its price target to $300 from $350 while keeping an Outperform rating, and TD Cowen also trimmed its target. Shares are down roughly 21% over 90 days.

Engineered Metal Solutions Serve Engines, Fasteners, Structures and Wheels

Pittsburgh-based Howmet is a global leader in advanced engineered metal solutions for aerospace, defense and commercial transportation, with roughly 25,400 employees. It operates four segments: Engine Products, Fastening Systems, Engineered Structures and Forged Wheels, and is a critical supplier to major engine makers and airframers.

Revenue was about $8.3 billion in 2025, up 11%, with growth from commercial aerospace backlogs, defense demand including the F-35, and gas turbine and spares demand.

Consecutive Earnings Beats and Raised Guidance Contrast With the Slide

In the second quarter, Howmet reported revenue up 24% to $2.55 billion, adjusted earnings of $1.33 per share versus estimates near $1.24 to $1.25, and an EBITDA margin of 32.1%. It has beaten estimates for seven straight quarters and raised full-year guidance.

Full-year 2026 guidance calls for revenue of $10.05 billion, earnings per share of $5.27 and free cash flow of $1.9 billion, each with a narrow range. Howmet has a market capitalization of about $83.02 billion, a forward price-to-earnings ratio of 33.47 and earnings per share of $4.55. The 52-week range runs from $188.83 to $310.00.

The October 29 Report Will Show Whether Gas Turbine Demand Holds

Howmet reports third-quarter results before the market opens on October 29. Management's third-quarter guide called for EBITDA near $830 million and earnings of $1.35 per share. Investors will watch gas turbine demand tied to data centers, aluminum costs, capacity investments and any further guidance raise, along with a quarterly dividend of $0.14 per share and $600 million of first-half buybacks.