The strong beat and raised guidance across all key metrics confirm accelerating aerospace cycle momentum. Traders should watch for potential further upside as commercial aircraft build rates increase and gas turbine demand remains 'extraordinary' — the raised FCF guidance to $1.9B supports continued aggressive share repurchases. Monitor Q3 earnings for execution on the CAM acquisition integration and any incremental capex guidance for 2027.
Price Chart
Executive Summary
Howmet Aerospace reported Q2 2026 results that beat consensus estimates on both revenue and adjusted EPS, with revenue of $2.547B (up 24% YoY) and adjusted EPS of $1.33 (up 46% YoY). The company raised its full-year 2026 guidance across revenue, adjusted EBITDA, adjusted EPS, and free cash flow, driven by strong commercial aerospace (28% growth) and gas turbine (38% growth) markets. The beat and raised guidance signal accelerating operational momentum and robust end-market demand, making this a clear bullish catalyst for the stock.
Key Financial Metrics
Key Facts
- Revenue of $2.547B beat consensus of $2.43B and grew 24% YoY (21% organic)
- Adjusted EPS of $1.33 beat consensus of $1.25 by 6.7% and grew 46% YoY
- Full-year 2026 guidance raised: revenue baseline to $10.05B (from $9.65B), adj. EPS to $5.27 (from $4.94), FCF to $1.9B (from $1.75B)
- Adjusted EBITDA margin expanded 340 bps YoY to 32.1%
- Engine Products segment revenue grew 32% YoY with margin expanding 470 bps to 37.7%
- Free cash flow of $479M in Q2, up 39% YoY; $800M in share repurchases YTD through July
- Quarterly dividend increased 17% to $0.14 per share
- Debt actions reduced annualized interest expense by $12M
Financial Impact
Revenue beat consensus by ~$117M (4.8%); adjusted EPS beat by $0.08 (6.7%); full-year guidance raised by $400M in revenue and $0.33 in adjusted EPS
Risk Factors
- Potential impact from geopolitical tensions (Iran conflict) on engine spares demand
- Commercial transportation market recovery is still nascent and could slow
- Integration risk from the $1.8B CAM acquisition
- Higher capex requirements in 2027 could pressure near-term FCF growth
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001104659-26-091610 |
| Document: tm2622325d1_8k.htm | 0001104659-26-091610 |
| Document: 0001104659-26-091610-index-headers.html | 0001104659-26-091610 |
| Document: 0001104659-26-091610-index.html | 0001104659-26-091610 |
| Document: 0001104659-26-091610.txt | 0001104659-26-091610 |
| 8-K Data (Synthetic) | 0001104659-26-091610 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 6, 2026 8w ago | 8-K | $289.72 $260.49 | ▼ −10.09% | ▼ −10.69% | $229.28 (−20.86%) |
May 28, 2026 18w ago | S-3ASR | $258.23 $268.87 | ▲ +4.12% | ▲ +7.76% | $229.28 (−11.21%) |
Apr 17, 2026 24w ago | Court Ruling | $255.48 $272.37 | ▼ −6.61% | ▼ −1.24% | $229.28 (+10.25%) |
Apr 6, 2026 25w ago | 8-K | $236.46 $239.57 | ▲ +1.32% | ▼ −7.67% | $229.28 (−3.03%) |
US Market Status
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