Howmet shares rise 7% premarket after Q3 profit beats estimates

Howmet Aerospace Inc. (HWM) said in a press release on Oct. 29, 2026 that third-quarter revenue rose 29% from a year earlier to $2.70 billion. Adjusted earnings per share were $1.46, and both figures topped consensus estimates of $1.38 per share and $2.62 billion compiled by Finnhub.

Shares rose 7.2% in premarket trading as of 7:10 a.m. ET, from a regular-session close of $195.19.

Here's how the company did:

• Adjusted EPS: $1.46 vs. $0.95 a year earlier, and $1.38 expected, according to Finnhub
• GAAP EPS: $1.42 vs. $0.95 a year earlier
• Revenue: $2.70 billion vs. $2.09 billion a year earlier, and $2.62 billion expected, according to Finnhub
• Adjusted EBITDA: $879 million vs. $614 million a year earlier
• Free cash flow: $562 million vs. $423 million a year earlier

Organic revenue, which excludes acquisitions and divestitures, rose 25%. Adjusted EBITDA margin expanded 310 basis points from a year earlier to 32.5%.

Free cash flow was $562 million after $147 million in capital expenditures.

Howmet Aerospace Executive Chairman and Chief Executive Officer John Plant said in the release, “Howmet's performance was solid in all dimensions, with third quarter results exceeding the high end of guidance.” Revenue grew 29% year over year and 25% organically.

Howmet Aerospace is headquartered in Pittsburgh, Pennsylvania, and supplies engine components, fastening systems, airframe structural components and forged aluminum wheels.

Segment results

Engine Products revenue was $1.45 billion, up 33% from a year earlier. Segment adjusted EBITDA was $567 million, up 57%, and its margin rose about 580 basis points to 39.1%. The segment absorbed net headcount of about 520 in the quarter to support expected future revenue increases.

Fastening Systems revenue was $630 million, up 41%. Excluding the CAM and Brunner acquisitions, revenue grew 10%. Segment adjusted EBITDA was $185 million, up 34%, and its margin fell about 140 basis points to 29.4%, reflecting the CAM acquisition.

Engineered Structures revenue was $295 million, down 4%, principally because of the divestiture of the Savannah disk forging facility. Excluding Savannah, revenue grew 8%. Segment adjusted EBITDA was $70 million, up 9%.

Forged Wheels revenue was $327 million, up 32%, on higher volumes and an increase in aluminum cost pass-through. Segment adjusted EBITDA was $86 million, up 18%, and its margin fell about 330 basis points to 26.3%.

2026 guidance

Howmet Aerospace increased its full-year 2026 guidance. It now expects revenue of $10.29 billion to $10.31 billion, with revenue raised by $250 million. Adjusted EBITDA is expected at $3.325 billion to $3.335 billion, and adjusted EPS at $5.49 to $5.51, a rise of 23 cents. Free cash flow is now forecast at $1.95 billion to $2.05 billion.

For the fourth quarter, the company expects revenue of $2.74 billion to $2.76 billion and adjusted EPS of $1.49 to $1.51.

Looking ahead, the company said it envisages 2027 revenue of about $11.5 billion, approximately 12% growth from the increased 2026 guidance.

Share repurchases and dividend

The company repurchased $500 million of common stock in the third quarter at an average price of $264.77 per share, retiring about 1.9 million shares. Through Oct. 28, it had repurchased $1.1 billion of shares for the year.

On Oct. 28, the board authorized a $5 billion increase to the share repurchase program. Together with the remaining $397 million, the total authorization is $5.397 billion. Plant said the increase reflects “confidence in the Company's strong free cash flow outlook.”

The board declared a quarterly dividend of 14 cents per share on July 27, paid on Aug. 25. That is a 17% increase from the 12 cents paid in the second quarter.

Acquisitions and charges

Howmet Aerospace completed the CAM acquisition on April 6, 2026, for approximately $1.8 billion. It also acquired Brunner in February 2026 and divested the Savannah disk forging facility in March 2026. For the nine months, restructuring and other items were a credit of $91 million, including a gain on the Savannah sale. Acquisition-related costs were $7 million in the third quarter.

According to its SEC filings, revenue has risen in each of the last three quarters, from $2.09 billion in the third quarter of 2025 to $2.55 billion in the second quarter of 2026.