Howmet Aerospace (NYSE: HWM) Posts 24% Revenue Jump, Raises Full-Year 2026 Guidance

Howmet Aerospace (NYSE: HWM) reported Q2 2026 revenue of $2.55 billion, up 24.1% year over year, while both GAAP EPS and adjusted EPS came in at $1.33, beating the $1.26 analyst consensus by 5.7%. The company simultaneously raised its full-year 2026 revenue guidance to a midpoint of $10.05 billion and lifted its full-year adjusted EPS outlook.

Q2 2026 Results

• Revenue: $2.55 billion, up 24.1% year over year, with organic growth of 21% excluding the net impact of three asset transactions completed in 2026.
• GAAP and adjusted EPS: Both $1.33, compared to GAAP EPS of $1.00 and adjusted EPS of $0.91 in Q2 2025, representing year-over-year increases of 33.0% and 46.2% respectively.
• Adjusted EBITDA: $817 million, up 39% year over year; adjusted EBITDA margin expanded 340 basis points year over year to 32.1%.
• GAAP operating income: $711 million, up 36.5% year over year; GAAP operating margin of 27.9%, a 250-basis-point improvement.
• Free cash flow: $479 million after $104 million in capital expenditures; operating cash flow was $583 million, up 31% year over year.

What Drove the Results

Adjusted EPS of $1.33 beat the $1.26 consensus by 5.7%, and revenue of $2.55 billion exceeded analyst expectations, with next-quarter revenue guidance of $2.575 billion at the midpoint running 4.1% above prior consensus. The top-line acceleration was broad-based: Engine Products revenue rose 32% year over year to $1.37 billion, driven by commercial aerospace, defense aerospace, and gas turbines, with segment adjusted EBITDA margin expanding 470 basis points to 37.7%. Fastening Systems revenue grew 37% to $589 million, aided by the April 6, 2026 acquisition of Consolidated Aerospace Manufacturing (CAM) from Stanley Black & Decker for approximately $1.8 billion, with segment adjusted EBITDA margin up 90 basis points to 30.1%.

Engineered Structures revenue declined 13% year over year to $269 million, reflecting the divestiture of the Savannah disk forging facility and deliberate product rationalization; however, segment adjusted EBITDA margin improved 170 basis points to 23.8% as lower-margin business was exited. Forged Wheels revenue rose 14% to $316 million, with volumes up 7% sequentially from Q1 2026, reflecting the beginning of a recovery in the North American commercial transportation market.

On capital allocation, the company repurchased $300 million of common stock in the quarter and reached $800 million in repurchases year to date through July, exceeding total 2025 buybacks. The company also repaid its $186 million Japanese yen-denominated term loan on May 22, 2026, and entered a cross-currency swap on $300 million of its 6.75% bonds due 2028 at a fixed rate of approximately 3.88%, reducing annualized interest expense by $12 million. The Q3 2026 dividend was raised 17% to $0.14 per share.

Guidance

For Q3 2026, Howmet guided revenue to $2,565 million-$2,585 million and adjusted EPS to $1.34-$1.36. Full-year 2026 guidance was raised across all metrics: revenue of $10,000 million-$10,100 million, adjusted EBITDA of $3,210 million-$3,250 million, adjusted EPS of $5.23-$5.31, and free cash flow of $1,850 million-$1,950 million.

Wall Street View

Analyst consensus ahead of the print was broadly constructive, and the results arrived with all key metrics exceeding the high end of prior guidance. No specific post-earnings price-target changes were available in the source data at the time of publication.

Investor Takeaway

The CAM acquisition closed in April and is already absorbed within the 32.1% adjusted EBITDA margin, suggesting integration is proceeding without meaningful near-term dilution to profitability. With $800 million in buybacks executed year to date and management stating that pre-CAM leverage levels are achievable in the near term, the company retains flexibility to pursue additional capital deployment options. The full-year free cash flow guidance midpoint of $1.9 billion, set against $104 million in Q2 capital expenditures and a stated intention to increase capex further in 2027, points to a period of elevated investment to support organic growth in aerospace and gas turbines.