Howmet Aerospace (HWM) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 19% year-over-year to $2.313B, driven by strong commercial and defense aerospace and gas turbine markets, with aerospace accounting for 68% of revenue.

• Adjusted EBITDA increased 32% to $740M, with margin expanding to 32.0% (+320 bps YoY); adjusted EPS rose 42% to $1.22, and GAAP EPS was $1.44, up 71% year-over-year.

• Net income rose to $580M, up from $344M, reflecting higher sales, favorable pricing, and a $93M gain from the Savannah facility sale.

• Free cash flow reached a record $359M, supporting $300M in share buybacks and $94M in CapEx.

• Completed Brunner and CAM acquisitions, and divested Savannah disc forging business, aligning with strategy to focus on high-growth, high-margin segments.

Financial highlights

• Q1 revenue: $2.313B (+19% YoY); adjusted EBITDA: $740M (+32% YoY); EBITDA margin: 32% (+320 bps YoY); operating income: $753M (+52% YoY); operating margin: 32.6%.

• EPS: $1.22 adjusted (+42% YoY), $1.44 GAAP (+71% YoY); net income: $580M (+69% YoY); free cash flow: $359M.

• Net leverage at 1.6x post-CAM acquisition; Fitch upgraded credit rating to A-; all major agencies rate investment grade.

• Q2 guidance: revenue $2.4B ±$10M, EBITDA $765M ±$5M, EPS $1.23 ±$0.01.

• Full-year 2026 guidance: revenue $9.65B ±$75M, EBITDA $3.06B ±$35M, EPS $4.94 ±$0.06, free cash flow $1.75B ±$50M, capex ~$490M (~5% of revenue).

Outlook and guidance

• Commercial and defense aerospace and gas turbine build rates expected to rise throughout 2026; strong spares demand persists.

• FY 2026 guidance raised: revenue $9.65B, EBITDA $3.06B, EPS $4.94, free cash flow $1.75B; portfolio changes expected to add $275M in revenue.

• Full-year organic revenue growth guidance (ex-M&A) increased to 10%-14%.

• Capex anticipated at ~5% of sales for 2026.

• Macroeconomic uncertainties remain, including inflation, oil prices, tariffs, and geopolitical risks.