Howmet Aerospace (HWM) Q2 2026 earnings summary

Executive summary

• Revenue grew 24% year-over-year to $2.55 billion in Q2 2026, with organic growth of 21%, driven by strong demand in commercial and defense aerospace and gas turbines, favorable pricing, and successful integration of recent acquisitions.

• Adjusted EBITDA increased 39% year-over-year to $817 million, with margin expanding by 340 basis points to 32.1%.

• Adjusted EPS rose 46% year-over-year to $1.33, exceeding guidance.

• Free cash flow for Q2 was $479 million, with a year-to-date total of $840 million, and cash from operations up 31% year-over-year.

• Major acquisitions completed, including CAM for $1.8 billion in April 2026 and Brunner, with integration on track; share repurchases totaled $800 million year-to-date.

Financial highlights

• Operating income increased 36% year-over-year to $711 million, with margin expanding to 27.9%.

• Segment Adjusted EBITDA for Q2 2026 was $846 million, up from $613 million in Q2 2025.

• Net income for Q2 was $534 million, up from $407 million in Q2 2025; net income margin for Q2 2026 was 21.0%.

• CapEx was $104 million in Q2, mainly for engine products and capacity expansion.

• Dividend increased 17% to $0.14 per share for Q3 2026.

Outlook and guidance

• FY 2026 revenue guidance raised to $10.05 billion ±$50 million, adjusted EBITDA $3.23 billion ±$20 million, adjusted EPS $5.27 ±$0.04, and free cash flow $1.9 billion ±$50 million.

• Q3 2026 revenue guidance set at $2.57–$2.59 billion; adjusted EPS $1.34–$1.36.

• Strong order backlog in commercial aerospace and gas turbines supports growth into 2027 and beyond.

• Capital expenditure expected to exceed $500 million in 2026, with further increases likely in 2027 to support growth.

• Management expects pension and postretirement benefit payments of approximately $65 million in 2026.