Howmet Aerospace stock weighs raised outlook after strong quarter

Howmet Aerospace reported record third-quarter growth on October 29, with management raising its full-year 2026 outlook and introducing an initial revenue view for 2027. The company said the quarter exceeded the high end of its previous guidance. The Howmet Aerospace press release provides the results and management commentary.

Revenue reached 2.703 billion US dollars, up 29 percent from the year-earlier quarter. Organic growth was 25 percent. Adjusted earnings per share increased 54 percent to 1.46 US dollars, while adjusted EBITDA rose 43 percent to 879 million US dollars. The adjusted EBITDA margin expanded by 310 basis points to 32.5 percent.

Aerospace demand drives expansion

Commercial aerospace revenue increased 32 percent year over year and defense aerospace revenue rose 10 percent. Gas turbine revenue climbed 45 percent, reflecting higher output and market-share gains, while commercial transportation revenue advanced 28 percent. Engine Products revenue grew 33 percent to 1.451 billion US dollars, and Fastening Systems revenue increased 41 percent to 630 million US dollars.

Chief Executive Officer John Plant said the commercial aerospace market remains robust, supported by the aircraft order backlog and expected production increases through 2027 and beyond. He also pointed to continued gas turbine demand, with customers seeking volumes above earlier expectations. The company expects elevated capital spending beyond 2027 to support growth in aerospace, defense and gas turbines.

Higher targets set for 2026

Howmet lifted its 2026 revenue guidance to a range of 10.290 billion to 10.310 billion US dollars, with a 10.300 billion US dollar baseline, 250 million US dollars above the earlier baseline. Adjusted EBITDA guidance moved to 3.325 billion to 3.335 billion US dollars, while adjusted earnings per share guidance rose to 5.49 to 5.51 US dollars. Free cash flow is expected at 1.950 billion to 2.050 billion US dollars.

For the fourth quarter, the company expects revenue of 2.740 billion to 2.760 billion US dollars and adjusted earnings per share of 1.49 to 1.51 US dollars. Management's initial 2027 revenue outlook is 11.5 billion US dollars, representing growth of approximately 12 percent from the increased 2026 guidance. Further refinement, including aircraft-volume assumptions, is expected with the February 2027 earnings call.

Howmet Aerospace stock traded at 203.40 euros on Lang & Schwarz at 13:50 CET on Thursday, November 12.

US equities trade against a broader market backdrop tracked through the S&P 500.

More news and analyses on Howmet Aerospace stock.