Earnings call transcript: Howmet Aerospace tops Q3 2026 forecasts, lifts outlook

Howmet Aerospace reported better-than-anticipated third-quarter 2026 results, with adjusted earnings of $1.46 per share and revenue of $2.7 billion, both surpassing Wall Street estimates. The aerospace and industrial supplier also raised its full-year outlook, citing strong demand across commercial aerospace, defense, and industrial gas turbines.

Shares rose 2.06% to $199.22 in regular trading and another 0.37% in after-hours trading to $199.95. Howmet exceeded analyst forecasts for both earnings and revenue in Q3. Revenue increased 29% year-over-year, while organic growth reached 25%, the highest quarterly rate in the company's history. EBITDA margin improved to 32.5%, driven by operating leverage and robust demand.

Free cash flow hit a quarterly record of $562 million. Management raised full-year 2026 guidance and set an initial 2027 revenue growth target of about 12%. The quarter demonstrated strong demand across all major end markets, with particularly rapid growth in engine products and industrial gas turbines. Howmet attributed the quarter to strong aerospace volumes, spare parts demand, and gains in industrial gas turbines driven by data center power needs.

The company continued returning cash to shareholders while investing for growth, repurchasing $500 million of stock in the quarter and raising its dividend by 17% to $0.14 per share. Revenue for the quarter was $2.7 billion, up 29% year-over-year and above the $2.59 billion forecast. Adjusted EPS was $1.46, up 54% year-over-year, and above the $1.37 forecast. EBITDA was $879 million, a 43% increase year-over-year.