Howmet Aerospace (HWM) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $2.703B, up 29% YoY and 25% organically; adjusted EBITDA rose 43% to $879M, adjusted EPS rose 54% to $1.46, and results exceeded the high end of guidance.

• Strong commercial aerospace, defense, gas turbine and commercial transportation demand supported record organic growth and higher FY26 guidance.

Financial highlights

• Q3 revenue was $2.703B versus $2.089B a year earlier; GAAP operating income was $777M and net income was $567M versus $385M.

• Adjusted EBITDA was $879M, up 43%; margin expanded 310 bps to 32.5%, with 43% incremental flow-through.

• Q3 free cash flow was $562M on $709M operating cash flow and $147M CapEx; ending cash was $508M.

• Nine-month revenue was $7.563B, net income $1.681B and operating cash flow $1.745B; nine-month free cash flow was $1.4B.

Outlook and guidance

• FY26 guidance: revenue $10.300B ±$10M, adjusted EBITDA $3.330B ±$5M, adjusted EPS $5.50 ±$0.01 and free cash flow $2.0B ±$50M; revenue guidance increased $250M.

• Q4 guidance: revenue $2.750B ±$10M, adjusted EBITDA $900M ±$5M and adjusted EPS $1.50 ±$0.01.

• Initial FY27 outlook calls for revenue of ~$11.5B, up ~12%; elevated capital spending is expected beyond 2027 to support growth.

• FY26 CapEx is expected at ~$515M, ~5% of sales; spending is expected to remain elevated.

• Industrial gas turbine sales are expected to double from 2025 levels in three years, with potential 2.5x growth within five years and ~$2.5B sales by decade-end.