Howmet Aerospace Stock Earnings Reports

Howmet reported a very strong start to 2026: Q1 sales $2.31B, adjusted EBITDA $740M (32% margin, +320 bps YoY), adjusted EPS $1.22 and record Q1 free cash flow of $359M. Revenue grew 19% YoY, led by Engine Products (+29%) and Gas Turbine (+39%); spares grew ~36% and now represent ~23% of revenue. The company completed two fastener acquisitions (CAM closed April 6 for ~$1.8B; Brunner closed in February for ~$120M) and sold the Savannah disk forging facility for $230M; pro forma net leverage rose to ~1.6x after CAM but management expects leverage to fall through 2026. Fitch upgraded Howmet to A-. Capital allocation: $300M share buyback in Q1 (plus $150M in April), continued dividend growth, and elevated capex (~$500M guidance) to support gas turbine and aerospace capacity expansion. Management reiterated a cautious but constructive view on macro/geo-political risks (Iran) and inflation, highlighted progress on gas-turbine customer contracts (6 of 7 customers agreed on terms), stressed careful balance between aggressive IGT investment and avoiding overcapacity, and confirmed Q2 and full-year 2026 guidance: Q2 revenue ~$2.40B, EBITDA ~$765M, EPS ~$1.23; FY revenue $9.65B, EBITDA $3.06B, EPS $4.94, and free cash flow $1.75B. Operational notes: margin expansion across all segments, continued hiring (~235 net employees in Q1, planning >1,000 hires in 2026), active work on supply-chain security for rare earths, and ongoing capacity buildouts (new Japan plant, takt/flow improvements) to meet rising gas-turbine demand.