PITTSBURGH – October 29, 2026 -- Howmet Aerospace (NYSE: HWM) reported third-quarter 2026 revenue of $2.70 billion, up 29% year over year and 25% organically, and raised its full-year 2026 guidance. Adjusted EPS rose 54% to $1.46, while GAAP EPS was $1.42. Executive Chairman and CEO John Plant called it "the strongest quarterly growth rate on record for Howmet."
Adjusted EBITDA climbs 43% to $879 million as margin widens 310 basis points
Adjusted EBITDA margin reached 32.5%. Free cash flow was $562 million after $147 million of capital expenditures. Results exceeded the high end of company guidance.
Gas turbines revenue surges 45% while commercial aerospace grows 32%
Growth was broad across end markets. Defense aerospace revenue rose 10% and commercial transportation revenue rose 28%. Plant said the gas turbines gain reflects both added output and increased market share, and that customers are seeking volumes beyond previous expectations, which supports the outlook beyond 2028.
Plant said the commercial aerospace backlog supports production increases throughout 2027 and beyond. He does not expect any material impact on spares demand from the Middle East conflict, citing the backlog of engine shop visits and requirements for next-generation narrowbody engines. He also expects further defense spares needs and likely increases in legacy fighter builds.
Howmet guides 2027 revenue to about $11.5 billion, up roughly 12%
The 2027 outlook is measured against the increased 2026 guidance. Capital expenditure is planned to stay elevated beyond 2027 to support aerospace, defense and gas turbines, with free cash flow conversion remaining a focus during the investment period.
Engine Products and Fastening Systems lead segment growth
Engine Products revenue rose 33% to $1.45 billion. Segment Adjusted EBITDA increased 57% to $567 million, and margin expanded about 580 basis points to 39.1%. The segment absorbed net headcount of about 520 in the quarter to support expected future revenue increases.
Fastening Systems revenue climbed 41% to $630 million, or 10% excluding the CAM and Brunner acquisitions. Adjusted EBITDA rose 34% to $185 million. Margin fell about 140 basis points to 29.4%, reflecting the CAM acquisition.
Engineered Structures revenue declined 4% to $295 million, driven by the divestiture of the Savannah disk forging facility. Excluding that sale, revenue grew 8%. Adjusted EBITDA rose 9% to $70 million, and margin improved about 290 basis points to 23.7% on the exit of lower-margin business.
Forged Wheels revenue rose 32% to $327 million on higher commercial transportation volumes and increased aluminum cost pass-through. Adjusted EBITDA grew 18% to $86 million. Margin fell about 330 basis points to 26.3% because of the higher pass-through.
Board lifts buyback authorization by $5 billion to $5.397 billion
On October 28, 2026, the board added $5 billion to the repurchase program. Together with $397 million of remaining authorization, Howmet can now buy back up to $5.397 billion of stock.
In the third quarter, the company repurchased $500 million of stock at an average $264.77 per share, retiring about 1.9 million shares. Year-to-date repurchases through October 28 total $1.1 billion at an average $250.72 per share.
Dividend rises 17% to $0.14 per share; commercial paper falls to $390 million
The board declared the $0.14 quarterly dividend on July 27, up from $0.12 in the second quarter, and it was paid on August 25. Howmet also repaid $60 million of commercial paper in the quarter, leaving $390 million outstanding under its $1 billion program.