Howmet Aerospace (HWM) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 19% year-over-year to $2.31B, with strong growth in commercial aerospace (+20%), defense aerospace (+10%), and gas turbines (+39%).

• Adjusted EBITDA increased 32% year-over-year to $740M, with margin expanding to 32% (+320 bps YoY).

• Adjusted EPS rose 42% year-over-year to $1.22; GAAP EPS was $1.44, up 71% year-over-year.

• Free cash flow reached a record $359M for Q1, supporting $300M in share buybacks and $94M in CapEx.

• Completed Brunner and CAM acquisitions, and divested Savannah disk forging business for $230M, aligning with strategy to focus on high-growth, high-margin segments.

Financial highlights

• Q1 operating income was $753M, up 52% YoY; operating margin expanded to 32.6%.

• Net leverage at 0.9x pre-CAM, 1.6x post-acquisition; Fitch upgraded credit rating to A-.

• Q2 guidance: revenue $2.4B ±$10M, EBITDA $765M ±$5M, EPS $1.23 ±$0.01.

• Full-year 2026 guidance: revenue $9.65B ±$75M, EBITDA $3.06B ±$35M, EPS $4.94 ±$0.06, free cash flow $1.75B ±$50M.

• CapEx for FY 2026 projected at ~$490M (~5% of revenue).

Outlook and guidance

• Commercial aerospace build rates expected to rise throughout 2026; strong spares demand persists.

• Defense and gas turbine markets remain robust; gas turbine sales expected to grow into 2027.

• Full-year organic revenue growth guidance (ex-M&A) increased to 10%-14%.

• Portfolio changes expected to add $275M in revenue for 2026, with EPS accretion in 2027.

• Macroeconomic uncertainties remain, including inflation, oil prices, and geopolitical risks.