Howmet Aerospace Reports Second Quarter 2026 Results
Revenue up 24% Year over Year, Organic Growth 21%; GAAP EPS $1.33, Adjusted EPS $1.33. Strong Second Quarter Cash Generation; $300 Million Deployed for Common Stock Repurchases. Full Year 2026 Guidance Increased.
| Dollars in Millions; per share amounts in dollars, diluted | Q2 2026 | Q2 2025 | Change | 6M 2026 | 6M 2025 | Change |
|---|---|---|---|---|---|---|
| Revenue | $2,547 | $2,053 | 24% | $4,860 | $3,995 | 22% |
| Operating Income (GAAP) | $711 | $521 | 36% | $1,464 | $1,015 | 44% |
| Operating Income Margin | 27.9% | 25.4% | 250bps | 30.1% | 25.4% | 470bps |
| Earnings per Share (EPS) | $1.33 | $1.00 | 33% | $2.77 | $1.84 | 51% |
| Cash from Operations | $583 | $446 | 31% | $1,036 | $699 | 48% |
| Adjusted EBITDA | $817 | $589 | 39% | $1,557 | $1,149 | 36% |
| Adjusted EBITDA Margin | 32.1% | 28.7% | 340bps | 32.0% | 28.8% | 320bps |
| Adjusted Operating Income | $733 | $520 | 41% | $1,399 | $1,011 | 38% |
| Adjusted Operating Income Margin | 28.8% | 25.3% | 350bps | 28.8% | 25.3% | 350bps |
| Adjusted EPS | $1.33 | $0.91 | 46% | $2.56 | $1.77 | 45% |
| Free Cash Flow | $479 | $344 | 39% | $838 | $478 | 75% |
Key Activity
- Completed acquisition of CAM on April 6, 2026 for approximately $1.8 billion
- Paid down the Company’s $186 million Japanese Yen-denominated term loan facility and entered into a separate $300 million cross-currency swap, reducing annualized interest expense by $12 million
- Increased the third quarter common stock dividend by 17% to $0.14 per share
PITTSBURGH, PA, August 6, 2026 – Howmet Aerospace (NYSE: HWM) announced results today for the second quarter 2026.
Howmet Aerospace Executive Chairman and Chief Executive Officer John Plant said, “The Howmet team delivered a strong set of results, with revenue, adjusted EBITDA, adjusted EBITDA margin, and adjusted earnings per share all exceeding the high end of guidance. Revenue growth was healthy at 24% year over year and 21% excluding the net impact of the three asset transactions completed this year. Adjusted EBITDA margin expanded 340 basis points year over year to 32.1%, including the absorption of the CAM fastener acquisition in April. Free cash flow performance was excellent at $479 million after $104 million in capital expenditures, supporting the future growth rate of the Company. The free cash flow also enabled $800 million in common stock repurchases year to date through July, an amount already greater than total repurchases in 2025.”
Mr. Plant continued, “Looking ahead, Howmet is well positioned, with all our major markets in growth mode. More robust build rates for commercial aircraft are supported by record backlogs, while engine spares needs continue to increase. Defense markets remain healthy, and the focus for missiles, drones and collaborative combat aircraft continues with growth expected over the medium term. Demand in the gas turbines market is extraordinary with customers already revisiting and adding to their demand outlooks. The commercial transportation market has begun to recover, as anticipated.”
“Our capital expenditure requirements continue to increase, and we already see the need to increase this further in 2027 to support future organic growth expectations in both the aerospace and gas turbines markets. We closed the CAM acquisition in April, and the integration is on track. Continued healthy cash generation will allow us to achieve pre-CAM leverage levels in short order, with the Company well positioned to consider all paths of capital deployment optionality going forward.”
2026 Guidance
| Dollars in Millions; per share amounts in dollars, diluted | Q3 2026 Low | Q3 Baseline | Q3 High | FY 2026 Low | FY Baseline | FY High | FY Baseline Change |
|---|---|---|---|---|---|---|---|
| Revenue | $2,565 | $2,575 | $2,585 | $10,000 | $10,050 | $10,100 | +$400 |
| Adjusted EBITDA | $825 | $830 | $835 | $3,210 | $3,230 | $3,250 | +$170 |
| Adjusted EBITDA Margin | 32.2% | 32.2% | 32.3% | 32.1% | 32.1% | 32.2% | +40bps |
| Adjusted EPS | $1.34 | $1.35 | $1.36 | $5.23 | $5.27 | $5.31 | +$0.33 |
| Free Cash Flow | — | — | — | $1,850 | $1,900 | $1,950 | +$150 |
Consolidated Results
Howmet Aerospace reported second quarter 2026 revenue of $2.55 billion, up 24% year over year with organic growth of 21%, and Adjusted EPS of $1.33, up 46% year over year. Revenue was driven by 28% growth in the commercial aerospace market, 11% growth in the defense aerospace market and 38% growth in the gas turbines market.
The Company reported adjusted EBITDA of $817 million, up 39% year over year. Adjusted EBITDA margin was up approximately 340 basis points year over year at 32.1%.
Segment Results
| Dollars in Millions — Second Quarter | 2026 | 2025 | Change |
|---|---|---|---|
| Engine Products — Third-party sales | $1,373 | $1,038 | 32% |
| Engine Products — Segment adjusted EBITDA | $517 | $343 | 51% |
| Engine Products — Segment adjusted EBITDA margin | 37.7% | 33.0% | 470bps |
| Fastening Systems — Third-party sales | $589 | $431 | 37% |
| Fastening Systems — Segment adjusted EBITDA | $177 | $126 | 40% |
| Fastening Systems — Segment adjusted EBITDA margin | 30.1% | 29.2% | 90bps |
| Engineered Structures — Third-party sales | $269 | $308 | (13)% |
| Engineered Structures — Segment adjusted EBITDA | $64 | $68 | (6)% |
| Engineered Structures — Segment adjusted EBITDA margin | 23.8% | 22.1% | 170bps |
| Forged Wheels — Third-party sales | $316 | $276 | 14% |
| Forged Wheels — Segment adjusted EBITDA | $88 | $76 | 16% |
| Forged Wheels — Segment adjusted EBITDA margin | 27.8% | 27.5% | 30bps |
Engine Products revenue of $1.37 billion rose 32% year over year, driven by growth in the commercial aerospace, defense aerospace, and gas turbines markets. The segment absorbed approximately 485 net headcount in the quarter in support of expected revenue increases.
Fastening Systems revenue of $589 million rose 37%, including the impacts from the CAM and Brunner acquisitions.
Engineered Structures revenue of $269 million declined 13%, driven by the divestiture of the Savannah disk forging facility and product rationalization.
Forged Wheels revenue of $316 million rose 14%, with 8% lower volumes in the commercial transportation market more than offset by an increase in aluminum and other inflationary cost pass through. Volumes increased 7% sequentially from the first quarter 2026, reflecting the beginning of the recovery of the North American commercial transportation market.
Capital Deployment
On April 6, 2026, the Company completed the acquisition of Consolidated Aerospace Manufacturing, LLC (CAM) for approximately $1.8 billion from Stanley Black & Decker, Inc. CAM is a leading global designer and manufacturer of precision fasteners, fluid fittings, and other complex, highly engineered products for demanding aerospace and defense applications.
On May 22, 2026, the Company repaid the outstanding principal amount of its Japanese Yen-denominated, senior unsecured term loan facility for approximately $186 million with cash on hand. The Company also entered into a cross-currency swap to synthetically convert the outstanding $300 million aggregate principal amount of its 6.75% Bonds due 2028 into a Japanese Yen liability for a fixed interest rate of approximately 3.88%. The combined effect of these debt actions will reduce annualized interest expense by $12 million.
In the second quarter 2026, Howmet Aerospace repurchased $300 million of common stock at an average price of $250.61 per share, retiring approximately 1.2 million shares. In July 2026, the Company repurchased an additional $200 million of common stock at an average price of $276.61 per share, retiring approximately 0.7 million shares. Year to date through July, the Company has repurchased $800 million of shares at an average price of $248.29 per share, exceeding the $700 million of shares repurchased in all of 2025. As of August 6, 2026, total share repurchase authorization available was $697 million.
On July 27, 2026, the Board of Directors declared a dividend of $0.14 per share on its common stock to be paid on August 25, 2026 to holders of record as of the close of business on August 7, 2026. The quarterly dividend represents a 17% increase from the second quarter 2026 dividend of $0.12 per share.
Statement of Consolidated Operations
| (in U.S. dollar millions, except per-share amounts) — Quarter ended | June 30, 2026 | March 31, 2026 | June 30, 2025 |
|---|---|---|---|
| Sales | $2,547 | $2,313 | $2,053 |
| Cost of goods sold | 1,596 | 1,459 | 1,365 |
| Selling, general administrative, and other expenses | 148 | 111 | 89 |
| Research and development expenses | 8 | 9 | 9 |
| Provision for depreciation and amortization | 84 | 74 | 69 |
| Restructuring and other credits | — | (93) | — |
| Operating income | 711 | 753 | 521 |
| Interest expense, net | 51 | 43 | 38 |
| Other expense, net | 11 | 2 | 14 |
| Income before income taxes | 649 | 708 | 469 |
| Provision for income taxes | 115 | 128 | 62 |
| Net income | $534 | $580 | $407 |
| Net income per share — basic | $1.33 | $1.45 | $1.01 |
| Average number of shares — basic | 400 | 401 | 404 |
| Net income per share — diluted | $1.33 | $1.44 | $1.00 |
| Average number of shares — diluted | 402 | 403 | 406 |
Consolidated Balance Sheet
| (in U.S. dollar millions) | June 30, 2026 | December 31, 2025 |
|---|---|---|
| Cash and cash equivalents | $563 | $742 |
| Receivables from customers, less allowances | 1,040 | 779 |
| Inventories | 2,183 | 1,849 |
| Prepaid expenses and other current assets | 407 | 409 |
| Total current assets | 4,193 | 3,779 |
| Properties, plants, and equipment, net | 2,817 | 2,593 |
| Goodwill | 5,084 | 4,022 |
| Deferred income taxes | 48 | 40 |
| Intangibles, net | 869 | 457 |
| Other noncurrent assets | 240 | 288 |
| Total assets | $13,251 | $11,179 |
| Accounts payable, trade | $1,149 | $845 |
| Accrued compensation and retirement costs | 304 | 343 |
| Accrued interest payable | 62 | 47 |
| Deferred revenue | 119 | 147 |
| Long-term debt due within one year | 1 | 191 |
| Short-term borrowings | 450 | — |
| Total current liabilities | 2,306 | 1,771 |
| Long-term debt, less amount due within one year | 4,050 | 2,859 |
| Accrued pension benefits | 511 | 546 |
| Total liabilities | 7,519 | 5,826 |
| Total equity | 5,732 | 5,353 |
| Total liabilities and equity | $13,251 | $11,179 |
Statement of Consolidated Cash Flows (six months ended June 30)
| (in U.S. dollar millions) | 2026 | 2025 |
|---|---|---|
| Net income | $1,114 | $751 |
| Depreciation and amortization | 158 | 138 |
| Stock-based compensation | 57 | 39 |
| Increase in receivables | (196) | (170) |
| Increase in inventories | (165) | (81) |
| Increase in accounts payable, trade | 279 | 74 |
| Cash provided from operations | 1,036 | 699 |
| Net change in commercial paper | 450 | — |
| Additions to debt | 1,200 | — |
| Repurchases and payments on debt | (186) | (77) |
| Repurchases of common stock | (600) | (300) |
| Dividends paid to shareholders | (97) | (83) |
| Cash provided from (used for) financing activities | 685 | (506) |
| Capital expenditures | (198) | (221) |
| Acquisitions, net of cash acquired | (1,929) | — |
| Proceeds from the sale of assets and businesses | 225 | 8 |
| Cash used for investing activities | (1,900) | (212) |
| Net change in cash, cash equivalents and restricted cash | (179) | (19) |
| Cash, cash equivalents and restricted cash at end of period | $564 | $546 |
Free Cash Flow Reconciliation
| (in U.S. dollar millions) | 1Q26 | 2Q26 | 6M 2026 |
|---|---|---|---|
| Cash provided from operations | $453 | $583 | $1,036 |
| Capital expenditures | (94) | (104) | (198) |
| Free cash flow | $359 | $479 | $838 |
The Accounts Receivable Securitization program remains unchanged at $250 outstanding.
Reconciliation of Adjusted Net Income
| (in U.S. dollar millions, except per-share amounts) | 2Q25 | 1Q26 | 2Q26 | 6M 2025 | 6M 2026 |
|---|---|---|---|---|---|
| Net income | $407 | $580 | $534 | $751 | $1,114 |
| Diluted EPS | $1.00 | $1.44 | $1.33 | $1.84 | $2.77 |
| Restructuring and other credits | — | (93) | — | (4) | (93) |
| Acquisition and acquisition-related costs | — | 7 | 22 | — | 29 |
| Benefits associated with closures, supply chain disruptions, and other items | (1) | — | — | — | — |
| Subtotal: Pre-tax special items | (1) | (86) | 22 | (4) | (64) |
| Tax impact of Pre-tax special items | — | 30 | (4) | 1 | 26 |
| Discrete and other tax special items | (35) | (30) | (18) | (26) | (48) |
| Total: After-tax special items | (36) | (86) | — | (29) | (86) |
| Adjusted Net income | $371 | $494 | $534 | $722 | $1,028 |
| Adjusted EPS | $0.91 | $1.22 | $1.33 | $1.77 | $2.56 |
About Howmet Aerospace
Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace, gas turbine, and transportation industries. The Company’s primary businesses focus on engine components, fastening systems, and airframe structural components necessary for mission-critical performance and efficiency, including in aerospace, defense, and gas turbine applications, as well as forged aluminum wheels for commercial transportation. With approximately 1,200 granted and pending patents, the Company’s differentiated technologies enable lighter, more fuel-efficient aircraft and commercial trucks to operate with a lower carbon footprint. For more information, visit www.howmet.com.