Howmet Aerospace reports 29% third-quarter revenue growth, raises guidance

Howmet Aerospace posts record quarterly growth

Howmet Aerospace reported third-quarter 2026 revenue of $2.703 billion, up 29% from $2.089 billion a year earlier. Organic revenue grew 25%, which the company said was its strongest quarterly growth rate on record. GAAP earnings per share were $1.42, while adjusted EPS was $1.46.

The Pittsburgh-based company also said third-quarter operating income rose 43% to $777 million. Operating margin increased 280 basis points to 28.7%.

Adjusted profitability and cash flow improved

Adjusted EBITDA rose 43% to $879 million, and adjusted EBITDA margin expanded 310 basis points year over year to 32.5%. Free cash flow increased 33% to $562 million after $147 million in capital expenditures. Cash from operations reached $709 million, up 34%.

For the first nine months of 2026, revenue totaled $7.563 billion, up 24%. GAAP EPS was $4.18, adjusted EPS was $4.01 and free cash flow was $1.4 billion.

Board expands repurchase authorization

Howmet Aerospace said it repurchased $500 million of common stock during the third quarter, bringing year-to-date repurchases to $1.1 billion. On October 28, the board increased the share-repurchase authorization by $5 billion, taking the total authorization to $5.397 billion.

The company also increased its quarterly common-stock dividend by 17% to $0.14 per share in the third quarter.

Howmet raises 2026 outlook

Howmet increased its full-year 2026 guidance, though the supplied release excerpt did not specify the revised numerical range. Executive Chairman and Chief Executive Officer John Plant said the third-quarter results exceeded the high end of guidance and described the company’s trajectory as pointing to a healthy fourth quarter and another strong year.

The company also issued full-year 2027 revenue guidance of approximately $11.5 billion, up about 12% year over year. That figure is forward-looking guidance rather than reported revenue.

Commercial aerospace and gas turbines support outlook

Plant said the commercial aerospace market continued to look robust, with an aircraft order backlog supporting expected production-volume increases through 2027 and beyond. Defense markets also remained solid, with further spares needs and likely increases in legacy fighter production.

Howmet reported 45% year-over-year gas-turbine revenue growth. Plant said this reflected both increased output and market-share gains, while also saying customers were seeking to raise volumes beyond previous expectations. These statements described the company’s operating environment and outlook; they did not establish new orders or bookings.

The company said it did not expect a material effect on spares demand from the Middle East conflict because of the backlog of engine-shop visits and requirements supporting next-generation narrowbody engines.