Howmet raises 2026 revenue forecast to $10.3 billion after 29% quarterly growth
Key Facts
Howmet Aerospace raised its 2026 revenue forecast to a range of $10.290–$10.310 billion and set $10.300 billion as a new baseline, $250 million above the previous baseline, after reporting quarterly revenue of $2.703 billion, up 29% year over year. In its third-quarter results statement issued on October 29, the company said organic revenue reached $2.568 billion, up 25%. It described the quarterly increase as the strongest quarterly growth rate in its history. Adjusted earnings per share rose to $1.46 from $0.95 a year earlier, while earnings per share under U.S. accounting standards were $1.42, compared with $0.95. The results reflect broad growth across the four markets the company serves, though the pace varied among them.
Gas turbines led the markets, growing 45% in the third quarter, followed by commercial aerospace, up 32%, commercial transportation, up 28%, and air defense, up 10%. Chief Executive John Plant said the commercial aerospace market “continues to look strong,” citing an exceptional aircraft order backlog that supports expected increases in production volumes during 2027 and beyond. The company added that demand for gas turbines continues to improve, with customers seeking volumes above previous expectations. It said this supports its outlook beyond 2028. The company also expects elevated capital spending to continue after 2027 to support growth in aerospace, defense and gas turbines, and pointed to a recovery in commercial transportation in North America.
The Engine Products segment reported third-party sales of $1.451 billion, up 33%, while adjusted earnings before interest, taxes, depreciation and amortization rose 57% to $567 million. The segment’s margin widened to 39.1% from 33.3% a year earlier, an increase of 580 basis points. In Fastening Systems, sales increased 41% to $630 million, but organic growth was 10%, illustrating the impact of acquisitions on the overall increase. The segment’s adjusted earnings margin fell 140 basis points to 29.4%, a decline the company attributed to the CAM acquisition. Engineered Structures sales fell 4% to $295 million, but grew 8% excluding the sale of the Savannah disc forging facility; the segment’s adjusted earnings rose 9% to $70 million, with its margin widening 290 basis points to 23.7%.
At the company level, operating income rose 43% to $777 million, and the margin widened to 28.7% from 25.9% in the year-earlier quarter. Adjusted earnings before interest, taxes, depreciation and amortization also rose 43% to $879 million, with the margin up 310 basis points to 32.5%. Cash from operations was $709 million, while free cash flow reached $562 million during the quarter. In the nine months ended September 30, 2026, revenue was $7.563 billion, compared with $6.084 billion in the same period a year earlier, an increase of 24%. The company raised its quarterly dividend on common stock by 17% to $0.14 per share in the third quarter.
Howmet set a fourth-quarter revenue range of $2.740–$2.760 billion, with a baseline of $2.750 billion. For 2027, the company expects revenue of about $11.5 billion, equivalent to growth of about 12% compared with its revised 2026 guidance. On spare parts, Plant said the company “does not expect a material impact on spare-parts demand from the Middle East conflict,” citing a backlog of engine maintenance visits and support needs for next-generation narrowbody aircraft engines. The company’s shares closed at $195.19 on October 28, according to EL7 data. The third-quarter results conference was scheduled for October 29, 2026, at 10:00 a.m. U.S. Eastern Time.