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

Howmet Aerospace (NYSE:HWM) announced its quarterly earnings data on Thursday. The company reported $1.46 earnings per share for the quarter, beating the consensus estimate of $1.37 by $0.09, FiscalAI reports. Howmet Aerospace had a return on equity of 36.44% and a net margin of 21.10%. The company had revenue of $2.70 billion during the quarter, compared to analysts’ expectations of $2.59 billion. During the same quarter last year, the company earned $0.95 EPS. Howmet Aerospace’s revenue for the quarter was up 29.4% compared to the same quarter last year.

Here are the key takeaways from Howmet Aerospace’s conference call:

• Q3 results exceeded guidance: Revenue rose 29% year over year to $2.7 billion, adjusted EBITDA increased 43% to $879 million, and adjusted EPS grew 54% to $1.46, with a 32.5% EBITDA margin.
• Strong demand across commercial aerospace, gas turbines, defense and commercial transportation drove growth; industrial gas turbine revenue increased 45%, while commercial aerospace rose 32% and spares revenue grew 30% to approximately $570 million.
• Management raised full-year 2026 guidance to $10.3 billion of revenue, $3.33 billion of EBITDA, $5.50 of EPS and approximately $2 billion of free cash flow, and initiated a 2027 revenue outlook of about $11.5 billion, representing roughly 12% growth.
• Capital returns remain substantial, with $1.1 billion of share repurchases year to date, a 17% dividend increase and a new $5 billion buyback authorization; net leverage ended the quarter at approximately 1.3 times EBITDA.
• Management cited risks from elevated fuel prices and potential winter travel disruption, while defense upside from missile production and inventory replenishment remains uncertain pending contract finalization and greater clarity on the 2027 defense budget.

Howmet Aerospace Stock Performance

Shares of NYSE:HWM traded down $6.51 during midday trading on Friday, reaching $199.43. The company had a trading volume of 3,739,323 shares, compared to its average volume of 3,763,072. Howmet Aerospace has a 52-week low of $183.52 and a 52-week high of $310.00. The company has a current ratio of 1.86, a quick ratio of 0.87 and a debt-to-equity ratio of 0.70. The company’s 50 day moving average price is $229.00 and its 200 day moving average price is $248.49. The stock has a market cap of $79.79 billion, a P/E ratio of 39.03, a P/E/G ratio of 1.85 and a beta of 1.21.

Howmet Aerospace Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Friday, November 6th will be issued a $0.14 dividend. This represents a $0.56 dividend on an annualized basis and a dividend yield of 0.3%. The ex-dividend date of this dividend is Friday, November 6th. Howmet Aerospace’s payout ratio is 10.96%.

Analyst Upgrades and Downgrades

HWM has been the subject of a number of research analyst reports. Sanford C. Bernstein reiterated an “outperform” rating and set a $298.00 price target (down from $328.00) on shares of Howmet Aerospace in a report on Wednesday, October 7th. Royal Bank Of Canada decreased their target price on shares of Howmet Aerospace from $350.00 to $300.00 and set an “outperform” rating on the stock in a report on Thursday, October 15th. BTIG Research increased their price objective on shares of Howmet Aerospace from $300.00 to $340.00 and gave the company a “buy” rating in a research note on Monday, August 10th. TD Cowen cut their price target on shares of Howmet Aerospace from $320.00 to $280.00 and set a “buy” rating on the stock in a report on Friday, October 9th. Finally, Deutsche Bank Aktiengesellschaft increased their price objective on shares of Howmet Aerospace from $338.00 to $343.00 and gave the stock a “buy” rating in a research report on Friday, August 7th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, Howmet Aerospace has a consensus rating of “Moderate Buy” and a consensus target price of $304.33.

Trending Headlines about Howmet Aerospace

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

• Positive Sentiment: Q3 results exceeded expectations: Revenue rose 29% year over year to $2.70 billion, while adjusted EPS increased 54% to $1.46, topping the $1.37 consensus estimate. Operating and EBITDA margins also expanded significantly. Howmet Aerospace Reports Third Quarter 2026 Results
• Positive Sentiment: Growth outlook was raised: Management increased its full-year 2026 guidance and projected approximately $11.5 billion of 2027 revenue, representing roughly 12% year-over-year growth. Industrial gas-turbine revenue climbed 45% in Q3, while commercial aerospace revenue increased 32%, reflecting strong demand and market-share gains. HWM Q3 Earnings Beat Estimates
• Positive Sentiment: Capital returns increased: Howmet repurchased $500 million of stock during the quarter, raised its quarterly dividend 17% to $0.14 per share, and authorized an additional $5 billion for share repurchases. Howmet Aerospace Reports Third Quarter 2026 Results
• Neutral Sentiment: Analysts remain bullish but less aggressive: BNP Paribas Exane cut its price target to $250 from $310 while retaining an “outperform” rating; Susquehanna lowered its target to $275 from $340 but kept a “positive” rating. The revisions still imply substantial upside, but signal more cautious assumptions.
• Negative Sentiment: Valuation and expectations remain risks: With HWM trading at a high earnings multiple and below its longer-term moving averages, investors may be taking profits or demanding stronger forward guidance after the earnings beat. The sizable target cuts likely contributed to the near-term pressure.

About Howmet Aerospace

Howmet Aerospace Inc (NYSE:HWM) is a global manufacturer of advanced engineered products and materials primarily serving the aerospace, defense, commercial transportation and industrial markets. The company develops components designed to operate in demanding environments where strength, durability and weight reduction are important.

Howmet’s product portfolio includes aircraft engine components, airframe structures, titanium and nickel-based forgings, fastening systems and wheels for commercial vehicles.