Howmet Aerospace Crushes Q2 Estimates, Raises Full-Year Outlook
HWM sits 78% above its 52-week low of $169.45.
Summary
Howmet Aerospace posted Q2 2026 revenue of $2.55B (+24% YoY) and adjusted EPS of $1.33, beating consensus. Full-year guidance was raised, and the company deployed $300M for buybacks while hiking the dividend 17%.
Key Events · Earnings and Guidance · HWM
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Q2 Revenue and EPS Beat
Revenue of $2.55B (+24% YoY) exceeded the $2.43B consensus; adjusted EPS of $1.33 beat the $1.25 estimate.
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Full-Year Guidance Raised
FY2026 revenue guidance increased to $10.0B-$10.1B, adjusted EPS to $5.23-$5.31, and free cash flow to $1.85B-$1.95B.
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Strong Cash Generation and Capital Returns
Generated $479M in free cash flow in Q2; repurchased $300M of stock at an average price of $250.61, and increased the quarterly dividend 17% to $0.14 per share.
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Broad-Based Market Growth
Commercial aerospace revenue grew 28%, defense aerospace 11%, and gas turbines 38%, with all major markets in growth mode.
Analysis · HWM · Manufacturing
A standout quarter saw revenue jump 24% year-over-year to $2.55 billion, while adjusted EPS reached $1.33—both comfortably ahead of analyst forecasts. Reflecting that momentum, management lifted its full-year 2026 targets across the board, now calling for revenue of $10.0–$10.1 billion and adjusted EPS of $5.23–$5.31. Robust cash generation enabled $300 million in share repurchases during the quarter and a 17% dividend increase, signaling deep confidence in sustained growth across commercial aerospace, defense, and gas turbine markets.
At the time of this filing, HWM was trading at $302.00 on NYSE in the Manufacturing sector, with a market capitalization of approximately $116.6B. The 52-week trading range was $169.45 to $295.28. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.