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

Howmet Aerospace (NYSE:HWM) released its earnings results on Thursday. The company reported $1.33 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.24 by $0.09, FiscalAI reports. The firm had revenue of $2.55 billion during the quarter, compared to analysts’ expectations of $2.43 billion. Howmet Aerospace had a return on equity of 29.27% and a net margin of 20.23%.The firm’s revenue was up 24.1% on a year-over-year basis. During the same quarter last year, the business posted $0.91 earnings per share. 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 Trading Down 0.8%

Shares of HWM opened at $288.96 on Friday. The stock has a market capitalization of $115.61 billion, a PE ratio of 67.04, a P/E/G ratio of 2.29 and a beta of 1.20. The company’s fifty day moving average is $272.33 and its 200 day moving average is $253.76. The company has a debt-to-equity ratio of 0.73, a quick ratio of 1.59 and a current ratio of 2.44. Howmet Aerospace has a fifty-two week low of $169.45 and a fifty-two week high of $310.00.

Howmet Aerospace Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, August 25th. Investors of record on Friday, August 7th will be given a $0.14 dividend. This is a boost from Howmet Aerospace’s previous quarterly dividend of $0.12. This represents a $0.56 annualized dividend and a yield of 0.2%. The ex-dividend date is Friday, August 7th. Howmet Aerospace’s dividend payout ratio (DPR) is presently 11.14%.

Insider Buying and Selling

In other Howmet Aerospace news, EVP Neil Edward Marchuk sold 41,932 shares of Howmet Aerospace stock in a transaction on 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 transaction, the executive vice president directly owned 65,105 shares of the company’s stock, valued at $17,545,797.50. This trade represents a 39.18% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. 0.85% of the stock is owned by company insiders.

Institutional Trading of Howmet Aerospace

Several hedge funds have recently made changes to their positions in HWM. Sivia Capital Partners LLC bought a new position in shares of Howmet Aerospace during the second quarter valued at approximately $216,000. Brighton Jones LLC raised its stake in Howmet Aerospace by 5.4% in the fourth quarter. Brighton Jones LLC now owns 2,548 shares of the company’s stock worth $279,000 after buying an additional 130 shares in the last quarter. DV Equities LLC purchased a new stake in Howmet Aerospace during the fourth quarter worth $116,000. Miller Capital Partners Inc. purchased a new stake in Howmet Aerospace during the fourth quarter worth $92,000. Finally, Truvestments Capital LLC increased its holdings in shares of Howmet Aerospace by 25.1% in the 4th quarter. Truvestments Capital LLC now owns 224 shares of the company’s stock valued at $46,000 after acquiring an additional 45 shares during the period. 90.46% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on HWM shares. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a $320.00 price target on shares of Howmet Aerospace in a research note on Friday, May 8th. Jefferies Financial Group boosted their target price on shares of Howmet Aerospace from $320.00 to $340.00 and gave the stock a “buy” rating in a report on Thursday, July 9th. BTIG Research upped their target price on shares of Howmet Aerospace from $275.00 to $300.00 and gave the stock a “buy” rating in a research report on Friday, May 8th. Wall Street Zen cut shares of Howmet Aerospace from a “strong-buy” rating to a “buy” rating in a research note on Sunday, July 5th. Finally, Morgan Stanley reiterated an “overweight” rating and issued a $315.00 price target 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 company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $300.33.

Trending Headlines about Howmet Aerospace

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

• Positive Sentiment: Second-quarter results beat expectations: Howmet reported revenue of $2.55 billion, up 24% year over year and above the $2.43 billion consensus estimate. Adjusted EPS of $1.33 exceeded expectations by $0.09 and rose 46% from the prior year. Howmet Aerospace Reports Second Quarter 2026 Results
• Positive Sentiment: Aerospace and turbine demand drove growth: Commercial aerospace production and stronger gas-turbine demand supported 21% organic growth, while operating margins expanded substantially. Management cited favorable industry trends and rising jet production as key growth drivers. HWM Q2 Earnings Beat Estimates on Aerospace, Turbine Growth
• Positive Sentiment: Full-year guidance was raised above consensus: Howmet now expects 2026 EPS of $5.23–$5.31 and revenue of $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 Stock Hits New High as Earnings, Guidance, Cash Flow Impress
• Positive Sentiment: Cash returns and financial execution improved: Second-quarter free cash flow increased 39% to $479 million, the company repurchased $300 million of stock, raised its quarterly dividend 17% to $0.14 per share, and reduced interest expense through debt refinancing and a currency swap. Howmet Aerospace Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Howmet completed its approximately $1.8 billion acquisition of CAM during the quarter. The deal expands its business but also increases integration demands and places greater importance on realizing expected synergies. Howmet Aerospace Reports Second Quarter 2026 Results
• Negative Sentiment: At roughly 67 times earnings and near its 52-week high, HWM already reflects considerable optimism. Any slowdown in aircraft production, supply-chain execution issues, or weaker-than-expected benefits from CAM could pressure the shares despite the strong report.

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.