Howmet (NYSE: HWM) revenue jumps 29% and management raises full-year guidance

What happened

Howmet Aerospace Inc. (NYSE: HWM) reported third-quarter 2026 revenue of $2.70 billion, up 29% from a year earlier, and raised its full-year outlook. Excluding acquisitions and divestitures, revenue grew 25%. The company says this is its fastest quarterly growth on record, which dates to its April 2020 separation from Arconic Corporation.

Adjusted EPS rose 54% to $1.46 from $0.95. GAAP EPS was $1.42 against $0.95. The adjusted figure leaves out special items, including $7 million of acquisition costs, $2 million of restructuring charges and discrete tax items. Adjusted EBITDA reached $879 million, up 43%, and the margin widened 310 basis points to 32.5%.

For 2026, Howmet raised its baseline guidance for revenue by $250 million, for adjusted EBITDA by $100 million, for adjusted EPS by $0.23 and for free cash flow by $100 million. The new baselines are $3.33 billion of adjusted EBITDA, adjusted EPS of $5.50 and free cash flow of $2.00 billion.

Key numbers

Metric	Latest	Change	Source
Third-quarter revenue	$2.70 billion	from $2.09 billion, +29%	SEC 8-K, Exhibit 99.1
Third-quarter adjusted EPS	$1.46	from $0.95, +54%	SEC 8-K, Exhibit 99.1
Third-quarter adjusted EBITDA margin	32.5%	from 29.4%, +310 basis points	SEC 8-K, Exhibit 99.1
Third-quarter free cash flow	$562 million	from $423 million, +33%	SEC 8-K, Exhibit 99.1
2027 revenue guidance versus 2026 baseline guidance	approximately $11.5 billion	+11.7%	Calculated from SEC 8-K
Total share repurchase authorization	$5.4 billion		SEC 8-K, Exhibit 99.1

Read more: Howmet Aerospace (HWM) company research

What the 2027 outlook implies

Howmet expects 2027 revenue of approximately $11.5 billion. It calls that approximately 12% growth from the increased 2026 guidance. Against the 2026 baseline of $10.30 billion, OptimistFi calculates implied growth of about $1.2 billion, or 11.7%.

John Plant, Howmet's executive chairman and chief executive, tied the outlook to commercial aerospace. He said the aircraft order backlog supports higher production volumes throughout 2027 and beyond.

Stock perps: every US stock that trades as a perpetual future, by leverage, live

Where the growth came from

By end market, gas turbines revenue grew 45%, commercial aerospace 32%, commercial transportation 28% and defense aerospace 10%. Plant said the gas turbines gain reflects both added output and more market share.

Engine Products, the largest segment, posted revenue of $1.45 billion, up 33%. Segment adjusted EBITDA rose 57% to $567 million. The company credits growth in commercial aerospace and gas turbines. The segment added net headcount of approximately 520 in the quarter to support expected future revenue increases.

Fastening Systems revenue rose 41% to $630 million, but only 10% excluding the CAM acquisition (April 2026) and the Brunner acquisition (February 2026). Engineered Structures revenue fell 4% to $295 million after the March 2026 sale of the Savannah disk forging facility. Excluding that sale, it rose 8%. Forged Wheels revenue rose 32% to $327 million on higher commercial transportation volumes and higher aluminum cost pass through.

Why it matters

OptimistFi has argued that Howmet's value depends on its qualified, safety-critical components keeping their pricing power as production normalizes. Engine Products, where segment margin widened to 39.1% from 33.3%, fits that view. The quarter strengthens the case.

The mix underneath is less clean. Fastening Systems margin fell 140 basis points to 29.4%, which the company links to the CAM acquisition. Forged Wheels margin fell 330 basis points to 26.3% because of higher aluminum cost pass through. Because part of the growth was acquired, the 2027 revenue outlook does not by itself show broad operating leverage.

Buybacks, dividend and debt

Free cash flow of $562 million, up 33% from $423 million a year earlier, came after $147 million of capital spending. Howmet repurchased $500 million of stock in the quarter at an average $264.77 a share, retiring about 1.9 million shares. Year to date through Oct. 28, it has repurchased $1.1 billion at an average $250.72.

On Oct. 28 the board added $5 billion to $397 million of remaining authorization, allowing repurchases of up to $5.4 billion. That is a ceiling. Howmet says it does not have to buy any set number of shares or buy at any particular time. The quarterly dividend rose 17% to $0.14 a share from $0.12.

The balance sheet carries more debt than at the start of the year. Howmet spent $1.93 billion on acquisitions, net of cash acquired, in the first nine months. Long-term debt stood at $4.05 billion on Sept. 30 against $2.86 billion at Dec. 31, 2025. Of the $1 billion commercial paper program, $390 million was outstanding.

What's next

Howmet holds its quarterly conference call at 10:00 AM Eastern on Thursday, Oct. 29, with a webcast on howmet.com. Plant said capital spending will stay high beyond 2027 to support aerospace, defense and gas turbines. Free cash flow conversion in that period is a number to track.

The fourth-quarter guidance is the next measurable test. Howmet guides to revenue of $2.74 billion to $2.76 billion, adjusted EBITDA of $895 million to $905 million and adjusted EPS of $1.49 to $1.51. Results inside those ranges, with margin near the guided 32.7% to 32.8%, would support the 2027 outlook. A shortfall would weaken it.

More from OptimistFi

• HWM stock: research and coverage of Howmet Aerospace
• Stock research on every company OptimistFi covers

From OptimistFi Perps