Howmet Aerospace Inc. (HWM)
NYSE:HWM
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Earnings Data
Report Date
Jul 30, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
1.23Last Year’s EPS
0.91Same Quarter Last Year
Strong Buy
Based on 14 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a broadly positive operational and financial picture: strong top-line growth (+19% YoY), robust margin expansion (EBITDA margin 32%, +320bps), record Q1 free cash flow, continued buybacks and a strategic M&A push that expands higher-growth Fasteners exposure. Management upgraded organic revenue growth guidance (ex-M&A) and provided solid full-year and Q2 guidance. Near-term negatives include an increase in leverage from the CAM acquisition (net leverage ~1.6x), limited 2026 EPS benefit from that deal due to interest expense, continued weakness in Commercial Transportation/Wheels volumes, capacity timing risks in Gas Turbines, and macro/geopolitical uncertainties (Iran/oil/inflation) that could affect demand. Overall, positives materially outweigh the manageable near-term risks.Company Guidance
Strong Q1 Financial Performance
Revenue $2.31B (+19% YoY), adjusted EBITDA $740M (+32% YoY), adjusted EPS $1.22 (+42% YoY). Adjusted EBITDA margin 32%, up 320 basis points YoY. Incremental flow-through of revenue to EBITDA ~49% YoY.
Record First-Quarter Cash Generation and Shareholder Returns
Free cash flow $359M (record for a first quarter). Repurchased $300M of stock in Q1 (avg $230/share) and an additional $150M in April (avg $246/share); 20th consecutive quarter of share repurchases. Remaining buyback authorization ~ $1.05B. Paid Q1 dividend $0.12 and expect 2026 dollar dividend distributions to be higher than 2025.
Spares Business Expansion and Mix Shift
Combined Commercial Aerospace, Defense Aerospace and Gas Turbine spares up 36% to ~$520M in Q1. Spares now represent 23% of revenue (vs. 21% in FY2025 and 11% in FY2019), indicating a durable, higher-margin recurring revenue mix.
Engine Products Outperformance
Engine Products revenue $1.25B (+29% YoY); Commercial Aerospace +31%, Defense Aerospace +13%, Gas Turbine +39%. Segment EBITDA $458M (+44% YoY); EBITDA margin 36.6% (+400 bps YoY). Added ~235 net employees to support growth.
Fastening Systems and Forged Wheels Strength
Fastening Systems revenue $471M (+14% YoY) with Commercial Aerospace +17% and Defense +21%; segment EBITDA $150M (+18% YoY), margin 31.8% (+100 bps). Forged Wheels revenue +17% YoY (despite volumes down 11%) and EBITDA $90M (+32% YoY), margin 30.5% (+350 bps) due to pass-through pricing, product mix and cost flexing.
Strategic M&A and Portfolio Optimization
Closed Brunner acquisition (~$120M) and CAM Fastener acquisition (~$1.8B); sold Savannah Disk Forging for $230M. Net effect expected to add ~ $275M revenue and ~$60M EBITDA to remainder of 2026. CAM financed partly with $1.2B new notes and $450M commercial paper; EPS impact negligible in 2026 but expected to be accretive starting 2027.
Balance Sheet Strength and Rating Upgrade
Quarter-end cash balance $2.4B (includes $1.65B added through debt issuance). Pre-CAM net debt/TTM EBITDA 0.9x; post-CAM net leverage 1.6x (management expects to reduce through 2026). Fitch upgraded rating from BBB+ to A-.
Raised 2026 Organic Growth Outlook and Clear Guidance
Updated full-year guidance: revenue $9.65B ±$75M, EBITDA $3.06B ±$35M, adjusted EPS $4.94 ±$0.06, free cash flow $1.75B ±$50M. Management raised full-year organic revenue growth (excluding M&A) from 10% to 14%. Q2 guide: revenue $2.4B ±$10M, EBITDA $765M ±$5M, EPS $1.23 ±$0.01.
HWM Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
HWM Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
May 07, 2026 | $256.32 | $272.42 | +6.28% |
Feb 12, 2026 | $230.75 | $244.68 | +6.04% |
Oct 30, 2025 | $203.16 | $201.45 | -0.84% |
Jul 31, 2025 | $191.71 | $179.36 | -6.44% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Howmet Aerospace Inc. (HWM) report earnings?
Howmet Aerospace Inc. (HWM) is schdueled to report earning on Jul 30, 2026, Before Open (Confirmed).
What is Howmet Aerospace Inc. (HWM) earnings time?
Howmet Aerospace Inc. (HWM) earnings time is at Jul 30, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
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What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is HWM EPS forecast?
HWM EPS forecast for the fiscal quarter 2026 (Q2) is 1.23.