Howmet Revenue Jumps 29% to $2.703 Billion, Expands Buyback Authorization
Key Facts
Howmet Aerospace reported a 29% year-over-year increase in revenue in the third quarter of 2026 to $2.703 billion, compared with $2.089 billion in the same period last year, according to the company’s statement published via PR Newswire. Organic growth was 25%, distinguishing the increase recorded after excluding the effect of transactions that are not included in this measure. The results came as reported operating income rose 43% to $777 million, from $542 million a year earlier. Operating income margin widened to 28.7% from 25.9%, an increase of 280 basis points. The figures reflect sales growth and margin improvement during the quarter, while the company raised its 2026 fiscal-year guidance and provided a revenue outlook for 2027.
Diluted GAAP earnings per share rose to $1.42, up 49% from $0.95 in the third quarter of 2025. Adjusted earnings per share were $1.46, up 54% year over year, according to the statement. The comparison shows adjusted earnings growth outpacing reported revenue growth, alongside higher operating income and an improved margin. The improvement extended beyond earnings: the company recorded $709 million in cash generated from operations, up 34% from $531 million a year earlier. Free cash flow was $562 million, compared with $423 million in the year-earlier period, an increase of 33%.
In its capital allocation, Howmet repurchased $500 million of common stock during the third quarter, bringing repurchases since the start of the year to $1.1 billion. On October 28, the board authorized a $5 billion increase in the buyback authorization, bringing the total available authorization to $5.397 billion. The decision sets an authorized limit for repurchases and does not mean the company immediately spent the increase. The company also raised its quarterly cash dividend on common stock by 17% to $0.14 in the third quarter. The period’s results therefore combined repurchases already completed, an expansion of the available authorization and an increase in the cash dividend.
The third-quarter results follow accelerating annual revenue growth during 2026: revenue rose 19% to $2.313 billion in the first quarter, then increased 24% in the second quarter, with organic growth of 21% that quarter. In its second-quarter results presentation, Howmet said growth in the commercial aerospace, defense and gas turbine markets supported performance, and that demand for engine spare parts continued to rise. The quarter’s details showed year-over-year revenue growth of 28% in commercial aerospace, 11% in defense aerospace and 38% in gas turbines. The company also said at the time that stronger commercial aircraft build rates were supported by record backlogs, and that the need for engine spare parts was increasing. These are factors the company had identified in its second-quarter results; the third-quarter results are not attributed to any single driver.
In its second-quarter results, Howmet raised its 2026 revenue guidance to a range of $10.0 billion to $10.1 billion, with a midpoint estimate of $10.05 billion. In its third-quarter results announcement, the company provided a fiscal 2027 revenue outlook of about $11.5 billion, an increase of nearly 12% year over year. This outlook puts next year’s revenue path above the level set in the company’s 2026 guidance, with the two guidance figures applying to different fiscal years. The company also said the $0.14-per-share cash dividend is payable on November 25 to shareholders of record on November 6. Howmet shares, listed under the ticker HWM, closed at $195.19 on October 28, according to EL7 data.