Skip to main content

Go Premium in Our Biggest Sale Ever

UPGRADE NOW
TipRanks
Go Ultimate75% OFF

Howmet Aerospace (HWM) Q3 2026 Earnings Report

0 Followers

MX:HWM Q3 2026 EPS Results

Actual EPS
MXN 27.16
Consensus EPS
MXN 25.57
Beat/Miss
Beat by +MXN 1.58
One Year Ago EPS
MXN 17.67

MX:HWM Q3 2026 Revenue Results

Actual Revenue
MXN 50.28B
Expected Revenue
MXN 48.18B
Beat/Miss
Beat by +MXN 2.09B
YoY Revenue Growth
+29.39%

Earnings Announcement Details

Quarter
Q3 2026
Date
10/29/2026
Time
Before Open
Conference Call
Thursday, October 29, 2026
MX:HWM Upcoming Earnings

Howmet Aerospace's next earnings date is estimated for February 16, 2027, based on past reporting schedules.

Q3 2026 Earnings Call Audio

MX:HWM Q3 2026 Earnings Call
0:00 / 0:00

Q3 2026 Earnings Slide Deck

Q3 2026 Earnings Call Summary

Q3 2026
Earnings Call Date:Oct 29, 2026|% Change Since:13.70%|
Earnings Call Sentiment|Positive

The call was strongly positive, with record organic growth, broad-based end-market expansion, higher margins and EPS, strong free cash flow, reduced leverage, increased capital returns, and raised 2026 guidance. Management also described substantial long-term demand visibility in aerospace, defense, gas turbines, and data centers. The principal challenges were lower Middle East travel, high fuel prices, uncertainty around defense budgets and contract timing, margin declines in Fastening Systems and Forged Wheels, the Engineered Structures revenue decline related to a divestiture, and the operational difficulty of expanding capacity quickly enough to meet demand.

Company Guidance

For Q4, Howmet envisages revenues to be approximately $2.75 billion plus or minus $10 million, EBITDA at $900 million plus or minus $5 million, and earnings per share at $1.50 plus or minus a penny; for the full year, guidance is revenues of $10.3 billion, plus or minus $10 million, EBITDA at $3.33 billion plus or minus $5 million, earnings per share at $5.50, plus or minus a penny, and free cash flow of $2 billion, plus or minus $50 million. The initial growth outlook for 2027 is 12% plus or minus half a percent, resulting in revenues of approximately $11.5 billion. Full-year sales growth is 25%, including a 22% organic growth so far this year, earnings per share growth is over 45%, and free cash flow of around $2 billion represents a cash margin of over 19%. Industrial gas turbine sales are expected to reach about $2.5 billion by the end of the decade, with growth from 2025 expected to reach two times in three years and maybe 2.5 times inside five years.

  • Strong Third-Quarter Financial PerformanceQ3 revenue was $2.7 billion, up 29% year-over-year and up 25% organically. EBITDA was $879 million, up 43%, with a 32.5% margin. Margins increased 40 basis points sequentially, and year-over-year incrementals were 43% after the dampening effect of the CAM acquisition.
  • Record Organic Growth and Earnings per ShareThird-quarter organic revenue growth of 25% was described as Howmet's strongest quarterly growth rate on record. Earnings per share were $1.46, up 54% year-over-year, and exceeded the high end of guidance.
  • Strong Cash Flow and Balance SheetQuarterly free cash flow was $562 million after record quarterly capital expenditures of $147 million. The company ended the quarter with $508 million of cash, net debt to trailing EBITDA of 1.3 times, and an undrawn $1 billion revolver. Gross debt and commercial paper were each reduced by $60 million during the quarter.
  • Share Repurchases and Dividend IncreaseHowmet repurchased $500 million of common stock in Q3 at an average price of $265 per share, bringing year-to-date repurchases to $1.1 billion at an average price of $251 per share. The diluted share count fell to 399.5 million, and the quarterly dividend increased 17%, from $0.12 to $0.14 per share. The board increased the share buyback authorization by a further $5 billion.
  • Broad-Based End-Market GrowthAll end markets grew in Q3. Commercial aerospace revenue increased 32%, defense aerospace increased 10%, commercial transportation increased 28%, gas turbine revenue increased 45%, and other markets increased 48%.
  • Commercial Aerospace and Spares DemandCommercial aerospace organic growth was 27%, driven by demand for both original equipment and spares. Total spares revenue increased 30% to approximately $570 million and represented approximately 21% of total revenue. Management said commercial aerospace spares demand continued to increase significantly across legacy and next-generation engine programs.
  • Gas Turbine Growth and Market Share GainsGas turbine revenue increased 45% in Q3. Management said the growth reflected both extraordinary additions to output and increased market share. The company now expects its industrial gas turbine sales to double from the 2025 base in three years and potentially reach 2.5 times the 2025 level within five years, or approximately $2.5 billion by the end of the decade.
  • Engine Products Delivered Exceptional ResultsEngine Products revenue increased 33% to $1.45 billion, including commercial aerospace growth of 39% and gas turbine growth of 44%. EBITDA increased 57% to $567 million, while EBITDA margin expanded 580 basis points to 39.1%. The segment absorbed approximately 520 net new employees during the quarter.
  • Fastening Systems Revenue and EBITDA GrowthFastening Systems revenue increased 41% to $630 million, including the CAM and Brunner acquisitions. Commercial aerospace revenue increased 42%, defense aerospace increased 56%, and commercial transportation increased 6%. Excluding acquisitions, total Fasteners growth was 10%, while EBITDA increased 34% to $185 million.
  • Engineered Structures Profitability ImprovementEngineered Structures revenue increased 10% sequentially, driven by higher commercial aerospace original equipment demand. EBITDA increased 9% year-over-year despite the reported revenue decline, and EBITDA margin expanded 290 basis points to 23.7% as the company focused on optimizing the structure segment.
  • Forged Wheels Volume GrowthForged Wheels revenue increased 32%, driven by higher volumes and increased aluminum cost pass-through. Volumes also increased sequentially as the North American market recovery continued, and EBITDA increased 18% year-over-year to $86 million.
  • Raised Fourth-Quarter and Full-Year 2026 GuidanceQ4 guidance calls for revenue of approximately $2.75 billion, plus or minus $10 million; EBITDA of $900 million, plus or minus $5 million; and EPS of $1.50, plus or minus a penny. Full-year guidance was increased to revenue of $10.3 billion, plus or minus $10 million; EBITDA of $3.33 billion, plus or minus $5 million; EPS of $5.50, plus or minus a penny; and free cash flow of $2 billion, plus or minus $50 million.
  • Positive 2027 Growth OutlookManagement's initial 2027 growth outlook is 12%, plus or minus half a percent, resulting in revenue of approximately $11.5 billion. Full-year 2026 sales growth is expected to be 25%, including 22% organic growth, with EPS growth of over 45%.
  • Long-Term Aerospace Demand VisibilityManagement expects aircraft production to continue increasing through 2027 and beyond, supported by the backlog for the 737, A320, 787, and A350. It also expects robust spares demand due to time-on-wing issues affecting new-generation narrow-body engines, scheduled shop visits, underbuild of aircraft compared with plans, and further MRO capacity being added by engine manufacturers.
  • Defense and Missile OpportunitiesDefense sales were described as strong, with further increases expected in legacy aircraft production and spares. F-35 spares remain healthy, and management said missile parts are the most important defense growth vector as a percentage of sales. The company is working with major primes and newer defense companies to prepare missile production.
  • Industrial Gas Turbine Backlog and Customer DemandManagement said current new gas turbine capacity is totally sold out, major customers have stated that 2031 is sold out, and 2032 will likely be sold out in the next one or two quarters. Demand is broad-based across industrial markets, oil and gas, and data centers, with further increases in gas turbine spares expected.
  • Continued Investment in Capacity and TechnologyHowmet is continuing to invest in aerospace and gas turbine capacity, with investments backed by long-term customer contracts. The company is increasing engineering staffing again in 2027, considering additional manufacturing plants, planning further GE capacity that will take two years to install, and expecting elevated capital expenditure into 2028.
  • Commercial Transportation RecoveryCommercial transportation revenue increased 28% in Q3, reflecting higher volumes as the North American market recovery continued and the pass-through of higher aluminum costs. Truck OEM build slots were described as largely full in the second half of 2026 and into the first part of 2027.

MX:HWM Earnings History

MX:HWM earnings history
Report DateFiscal QuarterForecast / EPSLast Year's EPSEPS YoY ChangePress Release
Feb 16, 20272026 (Q4)27.84-19.53――
Oct 29, 20262026 (Q3)25.5727.1617.6753.68% (+9.49)
Aug 06, 20262026 (Q2)23.1624.7416.9346.15% (+7.81)
May 07, 20262026 (Q1)20.5922.691641.86% (+6.70)
Feb 12, 20262025 (Q4)17.9519.5313.7641.89% (+5.77)
Oct 30, 20252025 (Q3)16.9317.6713.2133.80% (+4.46)
Jul 31, 20252025 (Q2)16.2216.9312.4635.82% (+4.46)
May 01, 20252025 (Q1)14.4316.0010.650.88% (+5.39)
Feb 13, 20252024 (Q4)13.3513.769.8639.62% (+3.91)
Nov 06, 20242024 (Q3)12.1613.218.5654.35% (+4.65)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat Missed