Howmet Aerospace Posts Strong Q2 2026 Results, Raises Guidance and Accelerates Share Buybacks

Howmet Aerospace (NYSE: HWM) reported robust second‑quarter 2026 financial results on August 6, with revenue of $2.547 billion—a 24% increase year over year—and organic growth of 21%, surpassing the high end of its guidance range.

The company delivered a GAAP and adjusted earnings per share of $1.33, up 33% and 46% year over year, respectively. Adjusted EBITDA rose 39% to $817 million, with margin expansion of approximately 340 basis points to 32.1%—driven by strong performance in commercial and defense aerospace, as well as gas turbines. Free cash flow reached $479 million, underpinning aggressive capital returns through buybacks.

Howmet also increased its dividend by 17%, to $0.14 per share for the third quarter, and raised its full-year 2026 guidance: revenue expectations now range from $10.0 billion to $10.1 billion; adjusted EPS is guided between $5.23 and $5.31; adjusted EBITDA guidance is $3.21 billion to $3.25 billion; and free cash flow is projected between $1.85 billion and $1.95 billion.

Segment Highlights and Buyback Activity

The company’s Engine Products segment saw third‑party sales of $1.373 billion, up 32%, with segment adjusted EBITDA climbing 51% to $517 million and a margin of 37.7%. Fastening Systems delivered $589 million in sales (up 37%) and $177 million in segment adjusted EBITDA, while Engineered Structures revenue fell 13% to $269 million, and Forged Wheels rose 14% to $316 million.

Capital deployment was notable: Howmet repurchased $300 million of stock in Q2 at an average price of $250.61 per share and an additional $200 million in July at $276.61 per share—totaling $800 million repurchased year to date through July, exceeding the $700 million repurchase amount in all of 2025. As of August 6, the remaining authorization stood at $697 million.

Implications for Investors

The results reflect sustained demand across Howmet’s end markets and efficient capital allocation. Revenue and margin strength, coupled with enhanced guidance and outsized buybacks, present a compelling value proposition for long‑term holders.

Investors may monitor how the remaining repurchase authorization is deployed, the sustainment of margin expansion, and performance in segments like Engineered Structures. With shares trading at $264.04 as of August 25—and a recent 1.79% drop—evaluating valuation relative to income metrics remains key.

Howmet’s Q2 report underscores its operational and financial heft, setting a sturdy tone for the rest of 2026.

Note on stock price: Verified live price of HWM is $264.04, down 1.79% as of August 25, 2026—used exactly as stated.