Howmet Aerospace (NYSE:HWM) Issues Earnings Results, Beats Expectations By $0.11 EPS

Howmet Aerospace (NYSE:HWM) issued its earnings results on Thursday. The company reported $1.22 earnings per share for the quarter, topping analysts’ consensus estimates of $1.11 by $0.11, FiscalAI reports. Howmet Aerospace had a net margin of 20.23% and a return on equity of 29.27%. The firm had revenue of $2.31 billion during the quarter, compared to analysts’ expectations of $2.24 billion. During the same period last year, the firm posted $0.86 earnings per share. The firm’s revenue for the quarter was up 19.1% compared to the same quarter last year. Howmet Aerospace updated its FY 2026 guidance to 4.880-5.000 EPS and its Q2 2026 guidance to 1.220-1.240 EPS.

Here are the key takeaways from Howmet Aerospace’s conference call:

• Howmet reported a very strong Q1 with $2.31B sales, $740M adjusted EBITDA (a 32% margin, +320 bps YoY), $1.22 EPS, and record Q1 free cash flow of $359M, enabling $450M of share repurchases in Q1–April.
• Management raised confidence for 2026 and provided guidance of $9.65B revenue, $3.06B EBITDA and $1.75B free cash flow, noting full‑year organic growth (ex M&A) has been increased to ~14%.
• Strategic portfolio moves: closed the CAM fastener acquisition (~$1.8B) and Brunner (~$120M), sold the Savannah disc forgings for $230M—CAM expands fastener offerings and adds ~ $275M revenue / ~$60M EBITDA for 2026 but was debt‑funded, taking net leverage to ~1.6x with management targeting rapid deleveraging.
• End‑market trends remain strong—commercial aerospace (+20% overall; engine spares +48%), gas turbines (+39%), and defense (+10%) drove performance, with spares now ~23% of company revenue, and continued CapEx to scale engine/gas turbine capacity.
• Management flagged macro risks from the Iran situation and related oil‑price shock, which could increase inflation, interest‑rate and FX volatility and create downside uncertainty for demand and supply chains.

Howmet Aerospace Stock Down 0.8%

Shares of NYSE:HWM traded down $2.21 during trading on Friday, reaching $270.33. 3,186,283 shares of the company traded hands, compared to its average volume of 2,382,769. The firm has a fifty day simple moving average of $245.89 and a 200 day simple moving average of $223.56. The firm has a market cap of $108.32 billion, a P/E ratio of 62.72, a price-to-earnings-growth ratio of 2.50 and a beta of 1.19. Howmet Aerospace has a 1-year low of $154.72 and a 1-year high of $280.74. The company has a quick ratio of 1.09, a current ratio of 2.44 and a debt-to-equity ratio of 0.73.

Howmet Aerospace Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, May 26th. Shareholders of record on Friday, May 8th will be paid a dividend of $0.12 per share. The ex-dividend date of this dividend is Friday, May 8th. This represents a $0.48 dividend on an annualized basis and a dividend yield of 0.2%. Howmet Aerospace’s dividend payout ratio (DPR) is 11.14%.

Key Headlines Impacting Howmet Aerospace

Here are the key news stories impacting Howmet Aerospace this week:

• Positive Sentiment: Howmet reported first-quarter revenue of $2.31 billion and adjusted EPS of $1.22, both above Wall Street estimates, with revenue up 19% year over year and record cash generation. Howmet Aerospace Reports First Quarter 2026 Results
• Positive Sentiment: The company raised full-year 2026 guidance, signaling confidence in demand and profitability; guidance now implies stronger EPS and revenue than analysts expected. Howmet Aerospace Reports First Quarter 2026 Results
• Positive Sentiment: Several firms turned more optimistic on the stock, including BNP Paribas Exane, which reaffirmed an outperform rating and lifted its price target to $340 from $265, and Susquehanna and BTIG, which also raised targets. Analyst update via Benzinga
• Positive Sentiment: Coverage highlighted a breakout in the shares after the earnings beat and upgraded outlook, reinforcing the view that demand is driving the company’s growth narrative. Howmet Aerospace scores breakout after demand-fueled beat, lifted guidance
• Neutral Sentiment: Howmet also completed the acquisition of Consolidated Aerospace Manufacturing, which expands its aerospace footprint and adds to its long-term growth story, though the immediate stock impact is less clear. Howmet Aerospace Reports First Quarter 2026 Results

Insiders Place Their Bets

In other Howmet Aerospace news, VP Barbara Lou Shultz sold 1,000 shares of Howmet Aerospace stock in a transaction on Thursday, February 26th. The shares were sold at an average price of $260.00, for a total transaction of $260,000.00. Following the completion of the sale, the vice president owned 23,874 shares of the company’s stock, valued at $6,207,240. This trade represents a 4.02% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, EVP Neil Edward Marchuk sold 45,150 shares of Howmet Aerospace stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $251.70, for a total transaction of $11,364,255.00. Following the sale, the executive vice president directly owned 107,008 shares of the company’s stock, valued at $26,933,913.60. This trade represents a 29.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.85% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of HWM. Acumen Wealth Advisors LLC bought a new position in shares of Howmet Aerospace during the 4th quarter valued at $25,000. Newbridge Financial Services Group Inc. raised its holdings in shares of Howmet Aerospace by 119.7% during the 2nd quarter. Newbridge Financial Services Group Inc. now owns 134 shares of the company’s stock valued at $25,000 after purchasing an additional 73 shares in the last quarter. Mcguire Capital Advisors Inc. bought a new position in shares of Howmet Aerospace during the 4th quarter valued at $28,000. Vermillion & White Wealth Management Group LLC raised its holdings in shares of Howmet Aerospace by 65.1% during the 4th quarter. Vermillion & White Wealth Management Group LLC now owns 137 shares of the company’s stock valued at $28,000 after purchasing an additional 54 shares in the last quarter. Finally, J.Safra Asset Management Corp bought a new position in shares of Howmet Aerospace during the 4th quarter valued at $30,000. Institutional investors own 90.46% of the company’s stock.

Wall Street Analyst Weigh In

A number of research firms recently commented on HWM. JPMorgan Chase & Co. raised their price objective on shares of Howmet Aerospace from $227.00 to $265.00 and gave the stock an “overweight” rating in a research note on Thursday, February 19th. Bank of America raised their price objective on shares of Howmet Aerospace from $250.00 to $300.00 and gave the stock a “buy” rating in a research note on Friday, February 20th. UBS Group raised their price objective on shares of Howmet Aerospace from $260.00 to $290.00 and gave the stock a “neutral” rating in a research note on Friday. Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $280.00 price objective on shares of Howmet Aerospace in a research note on Tuesday, February 17th. Finally, Citigroup decreased their price objective on shares of Howmet Aerospace from $283.00 to $271.00 and set a “buy” rating for the company in a research note on Thursday, April 2nd. Eighteen analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $281.21.

About Howmet Aerospace

Howmet Aerospace Inc is an industrial technology company that designs, manufactures and repairs engineered metal products for the aerospace, transportation and industrial markets. Its product portfolio includes precision castings and forgings, engineered fasteners, seamless rolled rings, and complex components for turbine engines, airframes and industrial gas turbines. The company also provides aftermarket services such as component repair, overhaul and parts distribution to support the operating fleet of commercial and military customers.

Howmet serves a global customer base of original equipment manufacturers (OEMs) and aftermarket operators, with manufacturing, service and distribution facilities across North America, Europe and Asia.