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Howmet's Q1 Earnings Beat Estimates on Commercial Aerospace Growth
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Key Takeaways
HWM Q1 revenues rose 19.1% as commercial aerospace and gas turbine demand stayed strong.
Howmet's Engine Products sales jumped 29%, driven by aerospace and gas turbine growth.
HWM raised full-year 2026 outlook, forecasting up to $9.73 billion in revenues and EPS of $5.00.
Howmet Aerospace Inc. (HWM - Free Report) reported first-quarter 2026 adjusted earnings of $1.22 per share, up 41.9% from the year-ago period. The figure beat the Zacks Consensus Estimate of $1.11.
Revenues of $2.31 billion increased 19.1% year over year and surpassed the consensus mark of $2.24 billion. Strength across key end markets, including commercial aerospace and gas turbines, supported the quarter’s results.
Howmet’s Segmental Details
The Engine Products segment’s revenues totaled $1.25 billion, representing 54.2% of net revenues. On a year-over-year basis, the segment’s revenues increased 29%, driven by growth in the commercial aerospace, defense aerospace and gas turbines end markets.
The Fastening Systems segment generated revenues of $471 million, accounting for 20.4% of net revenues. Revenues increased 14% year over year, driven by growth in the commercial aerospace and defense aerospace end markets.
The Engineered Structures segment’s revenues, representing 12.7% of net revenues, decreased 3% year over year to $294 million. The decline was attributed to product rationalization, while segment adjusted EBITDA remained flat year over year at $66 million.
The Forged Wheels segment’s revenues totaled $295 million, representing 12.7% of net revenues. On a year-over-year basis, the segment’s revenues were up 17%, aided by higher aluminum and other cost pass-through.
Howmet Aerospace Inc. Price, Consensus and EPS Surprise
Howmet’s cost of goods sold rose 13.1% year over year to $1.46 billion. Selling, general, administrative and other expenses rose 30.6% year over year to $111 million. Research and development expenses were $9 million.
Adjusted EBITDA, excluding special items, was $740 million, up 32.1% year over year. Adjusted EBITDA margin increased 320 basis points year over year to 32.0%. Adjusted operating income increased 35.6% year over year to $666 million.
The adjusted operating income margin was 28.8%, up 350 basis points year over year. Net interest expenses totaled $43 million, up 10.3% from the year-ago quarter.
Howmet’s Balance Sheet and Cash Flow
Exiting the first quarter, Howmet had cash, cash equivalents and restricted cash of $2.44 billion compared with $742 million at the end of December 2025. Long-term debt was $4.05 billion compared with $2.86 billion at the end of 2025.
In the first three months of 2026, Howmet generated net cash of $453 million from operating activities compared with $253 million in the year-ago period. Capital expenditures totaled $94 million compared with $119 million a year ago. Free cash flow in the same period was $359 million.
Howmet paid out dividends of $48 million in the first three months of 2026. In the same period, it repurchased shares worth $300 million.
Howmet Raises 2026 Guidance Following Strong Start
For second-quarter 2026, the company expects revenues of $2.39-$2.41 billion, adjusted EBITDA of $760-$770 million and adjusted earnings per share of $1.22-$1.24.
For full-year 2026, Howmet raised its outlook and now expects revenues of $9.575-$9.725 billion and adjusted EBITDA of $3.025-$3.095 billion. Adjusted earnings per share are projected at $4.88-$5.00, while free cash flow is expected at $1.70-$1.80 billion. The company also reiterated expectations for about $490 million of capital expenditures and free cash flow conversion of roughly 90%.
HWM’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
RTX Corporation’s (RTX - Free Report) first-quarter 2026 adjusted earnings per share of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.
Quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%.
Northrop Grumman Corporation (NOC - Free Report) reported first-quarter 2026 adjusted earnings of $6.14 per share, which beat the Zacks Consensus Estimate of $6.08 by 1%. The bottom line also improved 1.3% from the year-ago quarter’s level of $6.06.
NOC’s total sales of $9.88 billion in the first quarter beat the Zacks Consensus Estimate of $9.79 billion by 1%. The top line also improved 4.4% from $9.47 billion reported in the year-ago quarter.
The Boeing Company (BA - Free Report) incurred an adjusted loss of 20 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 95 cents. The bottom line improved from the year-ago quarter’s reported loss of 49 cents.
Revenues amounted to $22.22 billion, which outpaced the Zacks Consensus Estimate of $21.87 billion by 3.5%. The top line also surged 14% from the year-ago quarter’s reported figure of $19.5 billion.
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Howmet's Q1 Earnings Beat Estimates on Commercial Aerospace Growth
Key Takeaways
Howmet Aerospace Inc. (HWM - Free Report) reported first-quarter 2026 adjusted earnings of $1.22 per share, up 41.9% from the year-ago period. The figure beat the Zacks Consensus Estimate of $1.11.
Revenues of $2.31 billion increased 19.1% year over year and surpassed the consensus mark of $2.24 billion. Strength across key end markets, including commercial aerospace and gas turbines, supported the quarter’s results.
Howmet’s Segmental Details
The Engine Products segment’s revenues totaled $1.25 billion, representing 54.2% of net revenues. On a year-over-year basis, the segment’s revenues increased 29%, driven by growth in the commercial aerospace, defense aerospace and gas turbines end markets.
The Fastening Systems segment generated revenues of $471 million, accounting for 20.4% of net revenues. Revenues increased 14% year over year, driven by growth in the commercial aerospace and defense aerospace end markets.
The Engineered Structures segment’s revenues, representing 12.7% of net revenues, decreased 3% year over year to $294 million. The decline was attributed to product rationalization, while segment adjusted EBITDA remained flat year over year at $66 million.
The Forged Wheels segment’s revenues totaled $295 million, representing 12.7% of net revenues. On a year-over-year basis, the segment’s revenues were up 17%, aided by higher aluminum and other cost pass-through.
Howmet Aerospace Inc. Price, Consensus and EPS Surprise
Howmet Aerospace Inc. price-consensus-eps-surprise-chart | Howmet Aerospace Inc. Quote
HWM’s Margin Profile
Howmet’s cost of goods sold rose 13.1% year over year to $1.46 billion. Selling, general, administrative and other expenses rose 30.6% year over year to $111 million. Research and development expenses were $9 million.
Adjusted EBITDA, excluding special items, was $740 million, up 32.1% year over year. Adjusted EBITDA margin increased 320 basis points year over year to 32.0%. Adjusted operating income increased 35.6% year over year to $666 million.
The adjusted operating income margin was 28.8%, up 350 basis points year over year. Net interest expenses totaled $43 million, up 10.3% from the year-ago quarter.
Howmet’s Balance Sheet and Cash Flow
Exiting the first quarter, Howmet had cash, cash equivalents and restricted cash of $2.44 billion compared with $742 million at the end of December 2025. Long-term debt was $4.05 billion compared with $2.86 billion at the end of 2025.
In the first three months of 2026, Howmet generated net cash of $453 million from operating activities compared with $253 million in the year-ago period. Capital expenditures totaled $94 million compared with $119 million a year ago. Free cash flow in the same period was $359 million.
Howmet paid out dividends of $48 million in the first three months of 2026. In the same period, it repurchased shares worth $300 million.
Howmet Raises 2026 Guidance Following Strong Start
For second-quarter 2026, the company expects revenues of $2.39-$2.41 billion, adjusted EBITDA of $760-$770 million and adjusted earnings per share of $1.22-$1.24.
For full-year 2026, Howmet raised its outlook and now expects revenues of $9.575-$9.725 billion and adjusted EBITDA of $3.025-$3.095 billion. Adjusted earnings per share are projected at $4.88-$5.00, while free cash flow is expected at $1.70-$1.80 billion. The company also reiterated expectations for about $490 million of capital expenditures and free cash flow conversion of roughly 90%.
HWM’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
RTX Corporation’s (RTX - Free Report) first-quarter 2026 adjusted earnings per share of $1.78 beat the Zacks Consensus Estimate of $1.52 by 17%. The bottom line improved 21.1% from the year-ago quarter’s level of $1.47.
Quarterly revenues came in at $22.08 billion, up 8.7% from $20.31 billion in the year-ago period. Sales also beat the consensus mark of $21.56 billion by 2.43%.
Northrop Grumman Corporation (NOC - Free Report) reported first-quarter 2026 adjusted earnings of $6.14 per share, which beat the Zacks Consensus Estimate of $6.08 by 1%. The bottom line also improved 1.3% from the year-ago quarter’s level of $6.06.
NOC’s total sales of $9.88 billion in the first quarter beat the Zacks Consensus Estimate of $9.79 billion by 1%. The top line also improved 4.4% from $9.47 billion reported in the year-ago quarter.
The Boeing Company (BA - Free Report) incurred an adjusted loss of 20 cents per share in the first quarter of 2026, narrower than the Zacks Consensus Estimate of a loss of 95 cents. The bottom line improved from the year-ago quarter’s reported loss of 49 cents.
Revenues amounted to $22.22 billion, which outpaced the Zacks Consensus Estimate of $21.87 billion by 3.5%. The top line also surged 14% from the year-ago quarter’s reported figure of $19.5 billion.