Howmet Aerospace Reports Third Quarter 2026 Results

Revenue up 29% Year over Year, Organic Growth 25%; GAAP EPS $1.42, Adjusted EPS $1.46
Healthy Third Quarter Cash Generation; $500 Million Deployed for Common Stock Repurchases
Additional $5 Billion Share Repurchase Authorization by Board of Directors
Full Year 2026 Guidance Increased
Full Year 2027 Revenue Guidance: Approximately $11.5 Billion, Up ~12% Year over Year

Summary Financial Results

Key Activity

• Repurchased $500 million of common stock in third quarter 2026; $1.1 billion repurchased year to date
• On October 28, 2026, the Board of Directors authorized an increase in the Company's share repurchase program by $5 billion, resulting in $5.397 billion total authorization
• Increased the quarterly common stock dividend by 17% to $0.14 per share in third quarter 2026

PITTSBURGH, Oct. 29, 2026 /PRNewswire/ -- Howmet Aerospace (NYSE: HWM) announced results today for the third quarter 2026.

Howmet Aerospace Executive Chairman and Chief Executive Officer John Plant said, "Howmet's performance was solid in all dimensions, with third quarter results exceeding the high end of guidance. Revenue grew 29% year over year and 25% organically, the strongest quarterly growth rate on record for Howmet. Adjusted EBITDA margin expanded 310 basis points year over year to 32.5%. Free cash flow was a robust $562 million after $147 million in capital expenditures, as we continue to invest for growth. The free cash flow supported $500 million in common stock repurchases in the third quarter, lifting year-to-date repurchases to $1.1 billion. The Board of Directors authorized an increase in the share repurchase program by $5 billion to $5.397 billion, reflecting confidence in the Company's strong free cash flow outlook."

Mr. Plant continued, "Our trajectory points to a healthy fourth quarter and the conclusion of another strong year for Howmet. The commercial aerospace market continues to look robust, underpinned by the extraordinary aircraft order backlog that supports expected production volume increases throughout 2027 and beyond. We do not expect any material impact on our spares demand from the Middle East conflict given the backlog of engine shop visits and requirements to support next generation narrowbody engines. Defense markets remain solid, with further spares needs and likely increases in legacy fighter builds. Of particular note was the 45% year-over-year gas turbines revenue growth, which demonstrates both the extraordinary addition to output and, even more importantly, the increase in market share. Demand in the gas turbines market continues to strengthen with customers looking to increase volumes beyond previous expectations, which supports the outlook beyond 2028. Our capital expenditure plans envisage elevated spend beyond 2027 to support growth in both aerospace and defense as well as gas turbines. Our disciplined focus on free cash flow conversion will remain steadfast throughout this elevated investment period. The commercial transportation market continues to experience recovery in North America. Looking forward to 2027, we envisage revenue of approximately $11.5 billion, representing approximately 12% growth from the increased 2026 guidance."

2026 Guidance

in dollars, diluted

Change

Change

+20 bps

Change

Change

financial measures, as well as the directly comparable GAAP measures, are not available without unreasonable

efforts due to the variability and complexity of the charges and other components excluded from the non-GAAP

measures, such as gains or losses on sales of assets, taxes, and any future restructuring or impairment charges.

In addition, there is inherent variability already included in the GAAP measures, including, but not limited to,

price/mix and volume. Howmet Aerospace believes such reconciliations would imply a degree of precision that

would be confusing or misleading to investors.

Consolidated Results

Howmet Aerospace reported third quarter 2026 revenue of $2.70 billion, up 29% year over year with organic growth of 25%, and Adjusted EPS of $1.46, up 54% year over year. Revenue was driven by 32% growth in the commercial aerospace market, 10% growth in the defense aerospace market, 45% growth in the gas turbines market, and 28% growth in the commercial transportation market.

The Company reported Adjusted EBITDA of $879 million, up 43% year over year. The year-over-year increase was driven by growth in the commercial aerospace, defense aerospace, gas turbines, and commercial transportation markets. Adjusted EBITDA margin was up approximately 310 basis points year over year at 32.5%.

Segment Results

Engine Products

Fastening Systems

Dollars in Millions

Engineered Structures

Dollars in Millions

Forged Wheels

Dollars in Millions

Repurchased $500 Million of Common Stock in Third Quarter 2026; $1.1B Year To Date
In the third quarter 2026, Howmet Aerospace repurchased $500 million of common stock at an average price of $264.77 per share, retiring approximately 1.9 million shares. Year to date through October 28, 2026, the Company has repurchased $1.1 billion of shares at an average price of $250.72 per share.

Board of Directors Approved a $5 Billion Increase to the Share Repurchase Program
On October 28, 2026 the Board of Directors authorized an increase in the Company's share repurchase program by $5 billion, which, together with the remaining authorization of $397 million, results in authorization to repurchase up to $5.397 billion of the Company's outstanding stock.

Paid Down $60 Million of Debt
In the third quarter 2026, the Company paid down $60 million of borrowings on its commercial paper program. At the end of the quarter, $390 million of the $1 billion commercial paper program was outstanding.

Quarterly Common Stock Dividend Increases 17% to $0.14 Per Share in Third Quarter 2026
On July 27, 2026, the Board of Directors declared a dividend of $0.14 per share on its common stock, which was paid on August 25, 2026. The quarterly dividend represents a 17% increase from the second quarter 2026 dividend of $0.12 per share.

Howmet Aerospace will hold its quarterly conference call at 10:00 AM Eastern Time on Thursday, October 29, 2026. The call will be webcast via www.howmet.com. The press release and presentation materials will be available at approximately 7:00 AM ET on October 29, via the "Investors" section of the Howmet Aerospace website.

About Howmet Aerospace
Howmet Aerospace Inc., headquartered in Pittsburgh, Pennsylvania, is a leading global provider of advanced engineered solutions for the aerospace, gas turbine, and transportation industries. The Company's primary businesses focus on engine components, fastening systems, and airframe structural components necessary for mission-critical performance and efficiency, including in aerospace, defense, and gas turbine applications, as well as forged aluminum wheels for commercial transportation. With approximately 1,200 granted and pending patents, the Company's differentiated technologies enable lighter, more fuel-efficient aircraft and commercial trucks to operate with a lower carbon footprint. For more information, visit www.howmet.com.

Dissemination of Company Information
Howmet Aerospace intends to make future announcements regarding Company developments and financial performance through its website at www.howmet.com.   

Forward-Looking Statements
This release contains statements that relate to future events and expectations and as such constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include those containing such words as "anticipates," "believes," "could," "envisions," "estimates," "expects," "forecasts," "goal," "guidance," "intends," "may," "outlook," "plans," "points," "poised," "projects," "seeks," "sees," "should," "targets," "will," "would," or other words of similar meaning. All statements that reflect Howmet Aerospace's expectations, assumptions or projections about the future, other than statements of historical fact, are forward-looking statements, including, without limitation, statements, forecasts and outlook relating to the condition of markets; future financial results or operating performance; future strategic actions; Howmet Aerospace's strategies, outlook, and business and financial prospects; any future dividends, debt issuances, debt reduction and repurchases of its common stock; and statements regarding any acquisitions, including expected benefits. These statements reflect beliefs and assumptions that are based on Howmet Aerospace's perception of historical trends, current conditions and expected future developments, as well as other factors Howmet Aerospace believes are appropriate in the circumstances. Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and changes in circumstances that are difficult to predict, which could cause actual results to differ materially from those indicated by these statements. Such risks and uncertainties include, but are not limited to: (a) deterioration in global economic and financial market conditions generally, or unfavorable changes in the markets served by Howmet Aerospace, including due to escalating tariff and other trade policies and energy costs, and the resulting impacts on Howmet Aerospace's supply and distribution chains, as well as on market volatility and global trade generally; (b) the impact of potential cyber attacks and information technology or data security breaches; (c) the loss of significant customers or adverse changes in customers' business or financial conditions; (d) manufacturing difficulties or other issues that impact product performance, quality or safety; (e) inability of suppliers to meet obligations due to supply chain disruptions or otherwise; (f) failure to attract and retain a qualified workforce and key personnel, labor disputes or other employee relations issues; (g) the inability to achieve anticipated or targeted financial performance, operations or competitiveness, or realization of expected benefits from acquisitions, including the effective integration of acquired businesses; (h) inability to meet increased demand, production targets or commitments; (i) competition from new product offerings, disruptive technologies or other developments; (j) geopolitical, economic, and regulatory risks relating to Howmet Aerospace's global operations, including geopolitical and diplomatic tensions, instabilities, conflicts and wars, as well as compliance with U.S. and foreign trade and tax laws, sanctions, embargoes and other regulations; (k) the outcome of contingencies, including legal proceedings, government or regulatory investigations, and environmental remediation; (l) failure to comply with government contracting regulations; (m) adverse changes in discount rates or investment returns on pension assets; and (n) the other risk factors summarized in Howmet Aerospace's Form 10-K for the year ended December 31, 2025 and other reports filed with the U.S. Securities and Exchange Commission. Market projections are subject to the risks discussed above and other risks in the market. Under its share repurchase program, the Company may repurchase shares from time to time, in amounts, at prices, and at such times as the Company deems appropriate, subject to market conditions, legal requirements and other considerations. The program has no stated expiration, and the Company is not obligated to repurchase any specific number of shares or to do so at any particular time. The declaration of any future dividends is subject to the discretion and approval of the Board of Directors after the Board's consideration of all factors it deems relevant and subject to applicable law. The Company may modify, suspend, or cancel its share repurchase program or any dividend policy in any manner and at any time that it may deem necessary or appropriate. Credit ratings are not a recommendation to buy or hold any Howmet Aerospace securities, and they may be revised or revoked at any time at the sole discretion of the credit rating organizations. The statements in this release are made as of the date of this release, even if subsequently made available by Howmet Aerospace on its website or otherwise. Howmet Aerospace disclaims any intention or obligation to update publicly any forward-looking statements, whether in response to new information, future events, or otherwise, except as required by applicable law.   

Non-GAAP Financial Measures
Some of the information included in this release is derived from Howmet Aerospace's consolidated financial information but is not presented in Howmet Aerospace's financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). Certain of these data are considered "non-GAAP financial measures" under SEC rules. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measure. Reconciliations to the most directly comparable GAAP financial measures and management's rationale for the use of the non-GAAP financial measures can be found in the schedules to this release.

Other Information
In this press release, the acronym "FY" means "full year"; "Q" means "quarter"; "YoY" means year over year; "Adj." means adjusted; Howmet, Howmet Aerospace, or the Company means Howmet Aerospace Inc.; "organic growth" refers to the Company's revenue growth excluding the impact of acquisitions and divestitures; and references to performance by Howmet Aerospace or its segments as "record" mean its best result since April 1, 2020 when Howmet Aerospace Inc. (previously named Arconic Inc.) separated from Arconic Corporation.

Howmet Aerospace Inc. and subsidiaries

Statement of Consolidated Operations (unaudited)

(in millions, except per-share amounts)

Common Shareholders:

          declared of less than $1 for the quarters presented need to be subtracted from Net income.

          shares relates to share equivalents associated with outstanding restricted stock unit awards and employee stock options.

          share repurchases is not fully realized in earnings per share ("EPS") in the period of repurchase since share repurchases

          may occur at varying points during a period.

Consolidated Balance Sheet (unaudited)

(in U.S. dollar millions)

Statement of Consolidated Cash Flows (unaudited)

(in U.S. dollar millions)

foreign currency translation adjustments:

Segment Information (unaudited)

(in U.S. dollar millions)

Calculation of Financial Measures (unaudited)

(in U.S. dollar millions)

investors because Total Segment Adjusted EBITDA provides additional information with respect to the Company's operating

performance and the Company's ability to meet its financial obligations. The Total Segment Adjusted EBITDA presented may

not be comparable to similarly titled measures of other companies. Howmet's definition of Total Segment Adjusted EBITDA is

defined as Operating Income excluding Restructuring and other (credits) charges, Provision for depreciation and amortization,

and Special items. Special items, including Restructuring and other (credits) charges, are excluded from Adjusted EBITDA.

chain disruptions, and other items

expense

Calculation of Financial Measures (unaudited), continued

(in U.S. dollars millions)

management reviews cash flows generated from operations after taking into consideration capital expenditures (due to the fact that

these expenditures are considered necessary to maintain and expand the Company's asset base and are expected to generate future cash

flows from operations). It is important to note that Free cash flow does not represent the residual cash flow available for discretionary

expenditures since other non-discretionary expenditures, such as mandatory debt service requirements, are not deducted from the

measure.

Calculation of Financial Measures (unaudited), continued

(in millions, except per-share amounts)

2025

2026

• for 3Q25, a net benefit for other small items ($1);
• for 2Q26, a benefit to release a valuation allowance related to U.S. foreign tax credits ($22), a benefit to release a valuation allowance related to U.S. state tax losses ($10), a benefit to release a tax reserve in Germany ($3), an excess benefit for stock compensation ($1), and a charge to establish an international withholding tax reserve $16;
• for 3Q26, a charge related to a foreign pension plan termination $5, a charge for a valuation allowance related to U.S. foreign tax credits $3, a charge for an international withholding tax reserve $1, an excess benefit for stock compensation ($2), and a net benefit for other small items ($1);
• for the nine months ended 3Q25, benefits related to U.S. accounting method changes for certain prior period transaction and other costs ($17), an excess benefit for stock compensation ($14), a net benefit related to U.S. federal and state research and development credits claimed for prior years ($5), a net charge related to the expiration of a tax holiday in China $6, a charge for a tax reserve established in Germany $2, and a net charge for other small items $1; and
• for the nine months ended 3Q26, an excess benefit for stock compensation ($24), a benefit to release a valuation allowance related to U.S. foreign tax credits ($19), a benefit to release a valuation allowance related to U.S. state tax losses ($10), a benefit to release a tax reserve in Germany ($3), a net benefit for other small items ($1), a charge to establish an international withholding tax reserve $17, and a charge related to a foreign pension plan termination $5.

Calculation of Financial Measures (unaudited), continued

(in U.S. dollar millions)

tax rate,

as

reported

items⁽¹⁾⁽²⁾

tax rate, as

adjusted

tax rate,

as

reported

items⁽¹⁾⁽²⁾

tax rate, as

adjusted

• for the quarter ended 3Q26, a charge related to a foreign pension plan termination $5, a charge for a valuation allowance related to U.S. foreign tax credits $3, a charge for an international withholding tax reserve $1, an excess benefit for stock compensation ($2), and a net benefit for other small items ($1);
• for the nine months ended 3Q26, an excess benefit for stock compensation ($24), a benefit to release a valuation allowance related to U.S. foreign tax credits ($19), a benefit to release a valuation allowance related to U.S. state tax losses ($10), a benefit to release a tax reserve in Germany ($3), a charge to establish an international withholding tax reserve $17, a charge related to a foreign pension plan termination $5, and a net benefit for other small items ($1).

Calculation of Financial Measures (unaudited), continued

(in U.S. dollars millions)

Income, Adjusted Operating Income

Margin, Adjusted EBITDA, and Adjusted

EBITDA margin

2025

2026

amortization

Restructuring and other charges (credits), are excluded from Adjusted operating income. Management believes that these measures

are meaningful to investors because management reviews the operating results of the Company excluding the impacts of Special

items. There can be no assurances that additional Special items will not occur in future periods. To compensate for this limitation,

management believes that it is appropriate to consider both Operating income and Operating income margin determined under

GAAP as well as Adjusted operating income and Adjusted operating income margin.

meaningful to investors because they provide additional information with respect to the Company's operating performance and the

Company's ability to meet its financial obligations. The Adjusted EBITDA presented may not be comparable to similarly titled

measures of other companies. The Company's definition of Adjusted EBITDA is defined as Operating Income excluding

Restructuring and other charges (credits), Provision for depreciation and amortization, and Special items. Special items, including

Restructuring and other charges (credits), are excluded from Adjusted EBITDA.

Calculation of Financial Measures (unaudited), continued

(in U.S. dollars millions)

Organic Revenue

Growth

and

Divestitures

Revenue

and

Divestitures

Revenue

- Sales

- Organic

Revenue

Structures

on a comparable basis for all periods presented excluding the impact of the acquisitions of CAM (acquired April 2026) and Brunner

(acquired February 2026) and the sale of the disk forging facility in Savannah, GA (divested March 2026). Management believes that it is

appropriate to consider both Sales determined under GAAP as well as Organic Revenue.

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SOURCE Howmet Aerospace Inc.