Howmet Aerospace stock in focus after Q3 growth, higher outlook

Howmet Aerospace reported stronger-than-expected third-quarter performance on Thursday, October 29, 2026, and raised its full-year outlook. In its financial release, the aerospace supplier said revenue reached 2.703 billion US dollars, up 29 percent from the prior-year quarter, while organic growth was 25 percent. Adjusted earnings per share rose 54 percent to 1.46 US dollars.

Broad demand supports higher guidance

Howmet said third-quarter results exceeded the high end of its previous guidance. Adjusted EBITDA increased 43 percent to 879 million US dollars, and the adjusted EBITDA margin expanded 310 basis points to 32.5 percent. Free cash flow rose 33 percent to 562 million US dollars after 147 million US dollars of capital expenditure.

Growth was broad across the companys end markets. Commercial aerospace revenue increased 32 percent year over year, defense aerospace revenue gained 10 percent, gas turbine revenue advanced 45 percent and commercial transportation revenue rose 28 percent. Engine Products revenue increased 33 percent to 1.451 billion US dollars, while Fastening Systems revenue climbed 41 percent to 630 million US dollars.

Engineered Structures revenue declined 4 percent to 295 million US dollars, principally because of the divestiture of the Savannah disk forging facility. Excluding that divestiture, the segment grew 8 percent. Forged Wheels revenue increased 32 percent to 327 million US dollars, helped by higher commercial transportation volumes and aluminum cost pass-through.

Outlook and shareholder returns

Howmet raised its full-year 2026 revenue baseline by 250 million US dollars to 10.3 billion US dollars. The new baseline calls for adjusted EBITDA of 3.33 billion US dollars, adjusted earnings per share of 5.50 US dollars and free cash flow of 2 billion US dollars. Fourth-quarter guidance centers on revenue of 2.75 billion US dollars and adjusted earnings per share of 1.50 US dollars.

Management also gave an initial 2027 revenue view of approximately 11.5 billion US dollars, representing approximately 12 percent growth from the increased 2026 guidance. Chief Executive Officer John Plant said the commercial aerospace order backlog supports production increases through 2027 and beyond. He also pointed to stronger gas turbine demand and customer plans to increase volumes beyond earlier expectations, while noting that capital expenditure will remain elevated beyond 2027 to support growth.

Capital allocation added another element to the update. Howmet repurchased 500 million US dollars of common stock during the quarter, taking year-to-date repurchases to 1.1 billion US dollars. On October 28, the board increased the repurchase authorization by 5 billion US dollars, bringing total remaining authorization to 5.397 billion US dollars. The company also raised its quarterly dividend by 17 percent to 0.14 US dollars per share.

The real-time quote of Howmet Aerospace stock was 191.55 euros on Lang & Schwarz at 13:28 CET on Tuesday, November 3, 2026, 0.49 percent above the Xetra close of Monday, November 2.

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