Howmet Aerospace's $5 Billion Buyback Boost Signals Free Cash Flow Confidence

“Looking forward to 2027, we envisage revenue of approximately $11.5 billion, representing approximately 12% growth from the increased 2026 guidance.

Howmet's CEO just handed investors a 2027 revenue target on the same call where he raised 2026 guidance, a rare double-forward commitment from an aerospace supplier whose customers keep blaming the supply chain for delays. Plant is effectively saying engine and airframe demand is booked well past next year.

“Howmet's performance was solid in all dimensions, with third quarter results exceeding the high end of guidance. Revenue grew 29% year over year and 25% organically, the strongest quarterly growth rate on record for Howmet. Adjusted EBITDA margin expanded 310 basis points year over year to 32.5%.

Plant is calling the fastest quarterly growth in company history, and margins expanded alongside it. Jet engine parts demand is running hot enough that guidance was never the ceiling.

“Of particular note was the 45% year-over-year gas turbines revenue growth, which demonstrates both the extraordinary addition to output and, even more importantly, the increase in market share. Demand in the gas turbines market continues to strengthen with customers looking to increase volumes beyond previous expectations, which supports the outlook beyond 2028.

Howmet's CEO is telling investors the power-generation side of the business is taking share, with customers pushing for volumes past what they had already committed to. The company is now anchoring its demand visibility beyond 2028, a long runway for an aerospace name most people still value on jet engines.