Howmet Aerospace Inc. 8-K

PositiveEarningsGuidance raised

Commercial aerospace, defense aerospace and gas turbine growth drove the quarter; management raised its FY2026 outlook.

Filed 2026-08-06 07:00 ET

Summary

Q2 2026 results with increased FY2026 guidance. Revenue rose 24% Y/Y, including 21% organic growth, as commercial aerospace, defense aerospace and gas turbines grew. Howmet raised its FY2026 baseline outlook across revenue, adjusted EBITDA, adjusted EBITDA margin, adjusted EPS and free cash flow.

Key Figures

Metric Q2 2026 Q2 2025 Y/Y
Revenue $2.55B $2.05B 24%
Operating income $711M $521M 36%
Net income $534M $407M 31%
Diluted EPS $1.33 $1.00 33%
Adjusted EBITDA (non-GAAP) $817M $589M 39%
Operating cash flow $583M $446M 31%
Free cash flow (non-GAAP) $479M $344M 39%
Adjusted EPS (non-GAAP) $1.33 $0.91 46%
  • Organic revenue grew 21%; growth by market was 28% in commercial aerospace, 11% in defense aerospace and 38% in gas turbines. Operating margin increased 250 bp to 27.9%; adjusted EBITDA margin rose 340 bp to 32.1%.
  • Completed the CAM acquisition for ≈$1.8B on 4/6/2026. Repaid the $186M principal on its Japanese yen-denominated term loan and swapped the $300M principal amount of 6.75% bonds due 2028 into a yen liability at a fixed ≈3.88% rate; the actions are expected to reduce annualized interest expense by $12M.
  • Repurchased $300M of shares in Q2 at an average $250.61, retiring ≈1.2M shares; July repurchases were another $200M at $276.61, retiring ≈0.7M shares. YTD through July repurchases totaled $800M. The Q3 dividend increased 17% to $0.14 per share.

Guidance

Metric Period Guidance Prior Direction
Revenue Q3 2026 $2.565B-$2.585B; baseline $2.575B — —
Adjusted EBITDA (non-GAAP) Q3 2026 $825M-$835M; baseline $830M — —
Adjusted EBITDA margin (non-GAAP) Q3 2026 32.2%-32.3%; baseline 32.2% — —
Adjusted EPS (non-GAAP) Q3 2026 $1.34-$1.36; baseline $1.35 — —
Revenue FY2026 $10.0B-$10.1B; baseline $10.05B Prior baseline $9.65B Raised
Adjusted EBITDA (non-GAAP) FY2026 $3.21B-$3.25B; baseline $3.23B Prior baseline $3.06B Raised
Adjusted EBITDA margin (non-GAAP) FY2026 32.1%-32.2%; baseline 32.1% Prior baseline 31.7% Raised
Adjusted EPS (non-GAAP) FY2026 $5.23-$5.31; baseline $5.27 Prior baseline $4.94 Raised
Free cash flow (non-GAAP) FY2026 $1.85B-$1.95B; baseline $1.9B Prior baseline $1.75B Raised

Investor Takeaways

  • Watch Q3 revenue, adjusted EBITDA, margin and adjusted EPS against the guided ranges.
  • Track delivery against the increased FY2026 outlook as the company plans higher capital expenditures in 2027 to support expected organic growth.

The summary is written by an AI model reading the filing.

Model 005 · prompt 01d34d48e3

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