Howmet Aerospace (NYSE:HWM) Announces Earnings Results, Beats Estimates By $0.09 EPS

Howmet Aerospace (NYSE:HWM) announced its quarterly earnings results on Thursday. The company reported $1.33 earnings per share for the quarter, topping analysts’ consensus estimates 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%.The company’s revenue for the quarter was up 24.1% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.91 EPS. 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

Shares of Howmet Aerospace stock traded down $2.46 during trading on Thursday, reaching $288.96. The company’s stock had a trading volume of 3,274,828 shares, compared to its average volume of 2,624,290. The company has a quick ratio of 1.59, a current ratio of 2.44 and a debt-to-equity ratio of 0.73. The business’s 50-day moving average price is $271.75 and its 200-day moving average price is $253.31. Howmet Aerospace has a 52 week low of $169.45 and a 52 week high of $310.00. The firm has a market cap of $115.61 billion, a PE ratio of 67.04, a P/E/G ratio of 2.26 and a beta of 1.20.

Howmet Aerospace Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, August 25th. Stockholders of record on Friday, August 7th will be given a $0.14 dividend. The ex-dividend date of this dividend is Friday, August 7th. This is a boost from Howmet Aerospace’s previous quarterly dividend of $0.12. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.2%. Howmet Aerospace’s dividend payout ratio (DPR) is presently 12.99%.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the stock. Wall Street Zen lowered shares of Howmet Aerospace from a “strong-buy” rating to a “buy” rating in a research report on Sunday, July 5th. Royal Bank Of Canada upped their price target on shares of Howmet Aerospace from $300.00 to $325.00 and gave the company an “outperform” rating in a research note on Monday, July 27th. UBS Group increased their price target on shares of Howmet Aerospace from $260.00 to $290.00 and gave the company a “neutral” rating in a report on Friday, May 8th. Citigroup raised their price objective on shares of Howmet Aerospace from $303.00 to $311.00 and gave the stock a “buy” rating in a research report on Wednesday, July 1st. Finally, Morgan Stanley restated an “overweight” rating and set a $315.00 price objective on shares of Howmet Aerospace in a report on Friday, May 8th. Sixteen analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, Howmet Aerospace currently has a consensus rating of “Moderate Buy” and a consensus target price of $300.33.

Insider Buying and Selling

In other Howmet Aerospace news, EVP Neil Edward Marchuk sold 41,932 shares of Howmet Aerospace 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 in the company, valued at $17,545,797.50. The trade was a 39.18% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Corporate insiders own 0.85% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Brighton Jones LLC increased its holdings in shares of Howmet Aerospace by 5.4% during the fourth quarter. Brighton Jones LLC now owns 2,548 shares of the company’s stock worth $279,000 after purchasing an additional 130 shares during the period. Acadian Asset Management LLC bought a new position in Howmet Aerospace during the 1st quarter worth $399,000. Sivia Capital Partners LLC bought a new position in Howmet Aerospace during the 2nd quarter worth $216,000. Brown Advisory Inc. raised its holdings in Howmet Aerospace by 31.0% in the 2nd quarter. Brown Advisory Inc. now owns 4,180 shares of the company’s stock valued at $778,000 after acquiring an additional 990 shares in the last quarter. Finally, Cary Street Partners Financial LLC acquired a new position in Howmet Aerospace in the 2nd quarter valued at $145,000. Institutional investors and hedge funds own 90.46% of the company’s stock.

Trending Headlines about Howmet Aerospace

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

• Positive Sentiment: Q2 results exceeded expectations: Revenue rose 24% year over year to $2.547 billion, while GAAP EPS increased to $1.33 from $1.00 and topped the $1.24 consensus estimate. Organic growth was 21%, supported by aerospace and gas-turbine demand. Howmet Aerospace Reports Second Quarter 2026 Results
• Positive Sentiment: Profitability and cash flow improved substantially: Adjusted EBITDA increased 39% to $817 million, with the margin expanding to 32.1%. Operating cash flow rose 31% to $583 million and free cash flow increased 39% to $479 million. Howmet also repurchased $300 million of stock and raised its quarterly dividend 17% to $0.14 per share. Howmet Aerospace Stock Hits New High as Earnings, Guidance, Cash Flow Impress
• Positive Sentiment: Full-year guidance was raised above Wall Street estimates: Howmet now expects 2026 EPS of $5.23-$5.31 versus consensus of $5.06 and revenue of $10.0-$10.1 billion versus an approximately $9.7 billion estimate. Third-quarter EPS guidance of $1.34-$1.36 also exceeds the $1.26 consensus. HWM Q2 Earnings Beat Estimates on Aerospace, Turbine Growth
• Neutral Sentiment: Management highlighted rising aircraft production as a key demand driver. Howmet also completed its roughly $1.8 billion CAM acquisition and reduced annualized interest expense by approximately $12 million through debt repayment and a currency swap. Howmet Aerospace Q2 2026 Earnings Call Transcript
• Negative Sentiment: Investors still face transportation and supply-chain headwinds, while HWM trades at a historically elevated valuation, with the provided P/E ratio above 67. That valuation leaves less room for disappointment despite the strong outlook.

About Howmet Aerospace

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.