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Howmet Aerospace

HWM Q1 2026 Earnings

Reported May 7, 2026 at 7:00 AM ET · SEC Source

Q1 26 EPS

$1.22

BEAT +10.28%

Est. $1.11

Q1 26 Revenue

$2.31B

BEAT +3.18%

Est. $2.24B

Did HWM Beat Earnings? Q1 2026 Results

Howmet Aerospace kicked off 2026 with a standout first quarter, reporting adjusted earnings per share of $1.22 and revenue of $2.31 billion, both clearing the high end of prior guidance as the aerospace components maker rode surging demand across com… Read more Howmet Aerospace kicked off 2026 with a standout first quarter, reporting adjusted earnings per share of $1.22 and revenue of $2.31 billion, both clearing the high end of prior guidance as the aerospace components maker rode surging demand across commercial aviation, defense, and industrial gas turbines. Engine Products was the quarter's clearest engine of growth, with segment revenue climbing 29% year over year to $1.25 billion and adjusted EBITDA margin expanding 400 basis points to 36.6%, reflecting the broad-based strength in aircraft engine builds that management says shows no signs of cooling. Free cash flow reached $359.00 million, up 168% from a year ago, giving the company ample capacity to complete the $1.80 billion acquisition of Consolidated Aerospace Manufacturing in April while continuing to return capital through $300.00 million in buybacks during the quarter. Looking ahead, Howmet raised its full-year 2026 adjusted EPS guidance to a baseline of $4.94 and free cash flow to $1.75 billion, with management projecting further accretion from recent acquisitions beginning in 2027.

Key Takeaways

  • • 20% growth in commercial aerospace market revenue
  • • 10% growth in defense aerospace market revenue
  • • 39% growth in gas turbines market revenue
  • • Adjusted EBITDA margin expansion of 320 basis points YoY to 32.0%
  • • Engine Products segment EBITDA up 44% with 400 bps margin expansion to 36.6%
  • • Forged Wheels cost reductions and aluminum/inflationary cost pass-through offset 11% lower commercial transportation volumes
  • • Free cash flow up 168% year over year to $359 million

HWM Forward Guidance & Outlook

Howmet raised full year 2026 guidance. Revenue is now expected at $9,575M–$9,725M (baseline $9,650M, up $550M). Adjusted EBITDA is guided to $3,025M–$3,095M (baseline $3,060M) with margin of 31.6%–31.8%. Adjusted EPS is expected at $4.88–$5.00 (baseline $4.94, up $0.49). Free cash flow is guided to $1,700M–$1,800M (baseline $1,750M, up $150M). For Q2 2026, revenue is guided at $2,390M–$2,410M, adjusted EBITDA at $760M–$770M, and adjusted EPS at $1.22–$1.24. The net revenue effect of portfolio adjustments (CAM, Brunner acquisitions and Savannah divestiture) adds approximately $275M in revenue with insignificant EPS impact in 2026 but accretion expected in 2027. Management sees robust demand in commercial aerospace (OEMs targeting rate increases with record backlogs), defense, and gas turbines, while remaining cautious on commercial transportation. An effect on engine spares from the Iranian conflict is possible.

24/7 Wall St

HWM YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

24/7 Wall St

HWM Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“The Howmet team delivered a strong start to 2026, with revenue, adjusted EBITDA, adjusted EBITDA margin, and adjusted earnings per share all exceeding the high end of guidance. Revenue growth accelerated to 19% year over year, driven by strong growth across our key end markets, and adjusted EBITDA margin expanded 320 basis points year over year to 32.0%. Free cash flow performance was outstanding at $359 million after spending $94 million in capital expenditures, supporting the future growth rate of the Company. The free cash flow also enabled $300 million in common stock repurchases.”

— John Plant, Q1 2026 Earnings Press Release

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