| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 2.5K | 10.1% | 24.1% |
| Total Income | 2.5K | 10.1% | 24.1% |
| Expenditure | 1.8K | 17.7% | 19.8% |
| PBT | 649.00 | 8.3% | 38.4% |
| Net Profit | 534.00 | 7.9% | 31.2% |
| OPM | 27.91% | 4.64pp | 2.54pp |
| NPM | 20.97% | 4.11pp | 1.14pp |
| EPS | 1.33 | 8.3% | 31.7% |
Howmet Aerospace Reports Strong Q2 2026 Results: Revenue Up 24%, Adjusted EPS $1.33
06 Aug 2026 · 6 Aug, 4:37 pm
Summary
Howmet Aerospace announced strong second quarter 2026 results, with revenue increasing 24% year over year to $2.55 billion, including 21% organic growth. Adjusted EPS grew 46% to $1.33, and Adjusted EBITDA rose 39% to $817 million, with margins expanding significantly. The company highlighted robust performance across key markets, particularly commercial aerospace, defense, and gas turbines, and noted strong free cash flow generation which supported substantial share repurchases and a dividend increase. Management expressed confidence in future growth, citing positive market dynamics and strategic acquisitions.
Key Highlights
- 1
Howmet Aerospace reported second quarter 2026 revenue of $2.55 billion, an increase of 24% year over year, with organic growth of 21%.
- 2
The company's Adjusted EPS for the second quarter of 2026 was $1.33, representing a 46% increase year over year.
- 3
Second quarter 2026 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.
- 4
Adjusted EBITDA for the second quarter was $817 million, up 39% year over year, with Adjusted EBITDA margin expanding 340 basis points to 32.1%.
- 5
Free cash flow performance was strong at $479 million in the second quarter, enabling $800 million in common stock repurchases year to date through July.
- 6
The company increased its third quarter common stock dividend by 17% to $0.14 per share.
Management Comments
John Plant
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. 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.
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