Howmet Aerospace Inc. 8-K
PositiveEarningsGuidance raised
Aerospace and gas turbine demand drives higher FY2026 guidance and an FY2027 revenue growth outlook of ≈12% Y/Y.
Filed 2026-10-29 07:05 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results, with higher FY2026 guidance and FY2027 revenue guidance. Revenue grew 29% Y/Y and 25% organically, a company-record quarterly growth rate; management said results exceeded the high end of guidance. Growth was broad across commercial aerospace, defense aerospace, gas turbines and commercial transportation, while the company raised its FY2026 outlook and forecast approximately 12% revenue growth in FY2027.
Key Figures
| Metric | Q3 2026 | 9M 2026 |
|---|---|---|
| Revenue | $2.70B, +29% Y/Y | $7.56B, +24% Y/Y |
| Operating income | $777M, +43% Y/Y | $2.24B, +44% Y/Y |
| Operating income margin | 28.7%, vs 25.9% | 29.6%, vs 25.6% |
| Net income | $567M, +47% Y/Y | $1.68B, +48% Y/Y |
| Diluted EPS | $1.42, +49% Y/Y | $4.18, +50% Y/Y |
| Non-GAAP adjusted diluted EPS | $1.46, +54% Y/Y | $4.01, +47% Y/Y |
| Operating cash flow | $709M, +34% Y/Y | $1.75B, +42% Y/Y |
| Free cash flow | $562M, +33% Y/Y | $1.40B, +55% Y/Y |
| Non-GAAP adjusted EBITDA | $879M, +43% Y/Y | $2.44B, +38% Y/Y |
| Non-GAAP adjusted EBITDA margin | 32.5%, vs 29.4% | 32.2%, vs 29.0% |
- Market revenue growth was 32% in commercial aerospace, 10% in defense aerospace, 45% in gas turbines and 28% in commercial transportation. Engine Products sales rose 33% and segment adjusted EBITDA rose 57%, driven by commercial aerospace and gas turbines. Fastening Systems sales rose 41%, but 10% excluding acquisitions; Engineered Structures sales fell 4% due to the Savannah divestiture, but grew 8% excluding it.
- Q3 free cash flow followed $147M of capital expenditures. Howmet repurchased $500M of stock at an average $264.77 per share, retiring approximately 1.9M shares; YTD repurchases were $1.1B. Period-end shares outstanding were 398M, vs 403M a year earlier. The board authorized an additional $5B for repurchases, bringing total authorization to $5.397B; the quarterly dividend rose 17% to $0.14 per share.
- The company paid down $60M of commercial paper borrowings during Q3; $390M of its $1B commercial paper program remained outstanding at quarter-end.
Against earlier guidance (derived from earlier filings)
| Metric | Period | Earlier guidance | Actual | Result |
|---|---|---|---|---|
| Revenue | Q3 2026 | $2.565B-$2.585B; baseline $2.575B | $2.70B | beat |
| Adjusted EBITDA (non-GAAP) | Q3 2026 | $825M-$835M; baseline $830M | $879M | beat |
| Adjusted EBITDA margin (non-GAAP) | Q3 2026 | 32.2%-32.3%; baseline 32.2% | 32.5% | beat |
| Adjusted EPS (non-GAAP) | Q3 2026 | $1.34-$1.36; baseline $1.35 | $1.46 | beat |
Guidance
FY2026 outlook was increased. Prior baselines below are implied by the baseline increases stated in the release; the FY2027 revenue outlook is supported by management’s view of aerospace and gas turbine demand.
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue | Q4 2026 | $2.74B-$2.76B; baseline $2.75B | — | — |
| Revenue | FY2026 | $10.29B-$10.31B; baseline $10.30B | $10.05B baseline | Raised |
| Non-GAAP adjusted EBITDA | Q4 2026 | $895M-$905M; baseline $900M | — | — |
| Non-GAAP adjusted EBITDA | FY2026 | $3.325B-$3.335B; baseline $3.330B | $3.230B baseline | Raised |
| Non-GAAP adjusted EBITDA margin | Q4 2026 | 32.7%-32.8% | — | — |
| Non-GAAP adjusted EBITDA margin | FY2026 | 32.3% | 32.1% baseline | Raised |
| Non-GAAP adjusted EPS | Q4 2026 | $1.49-$1.51; baseline $1.50 | — | — |
| Non-GAAP adjusted EPS | FY2026 | $5.49-$5.51; baseline $5.50 | $5.27 baseline | Raised |
| Non-GAAP free cash flow | FY2026 | $1.95B-$2.05B; baseline $2.00B | $1.90B baseline | Raised |
| Revenue | FY2027 | ≈$11.5B; ≈12% Y/Y growth | — | — |
Investor Takeaways
- Q4 revenue against the $2.74B-$2.76B outlook will test whether broad market growth continues into year-end.
- Watch commercial aerospace production and gas turbine sales: management cited aircraft order backlogs supporting volume increases through 2027 and beyond, and gas turbine demand supporting its outlook beyond 2028.
- Howmet expects elevated capital spending beyond 2027 to support growth in aerospace, defense and gas turbines; free cash flow conversion will be an important measure of whether that investment can continue alongside shareholder returns.
The summary is written by an AI model reading the filing.
Model 005 · prompt v111 · 2026-10-29 14:35:02Z