Howmet Aerospace Inc. (HWM) delivered stronger-than-expected second-quarter 2026 results on Aug. 6, impressing investors with both earnings and revenue growth.
Earnings per share beat the Zacks Consensus Estimate by 8.1% and surged 46% year over year, signaling robust operational momentum across the business.
Total revenues reached $2.55 billion, topping the consensus estimate of $2.41 billion and representing a 24% increase compared to the same period last year.
The company cited persistent strength in commercial and defense aerospace markets as the primary driver behind its impressive quarterly performance.
Following the strong results, Howmet raised its full-year 2026 revenue outlook to $10.00-$10.10 billion, up significantly from its prior guidance range of $9.575-$9.725 billion.
Adjusted earnings guidance was also lifted to $5.23-$5.31 per share, compared to the previous range of $4.88-$5.00, reflecting growing confidence in the company’s trajectory.
Commercial aerospace remains the single strongest driver of Howmet’s business, with revenues from that segment surging 28% year over year in the second quarter and representing 53% of total company revenue.
Healthy build rates at Airbus for A320 and A350 aircraft, along with a production recovery in the Boeing 737 MAX, are expected to support continued spare engine demand for HWM going forward.
Defense aerospace also contributed meaningfully, with revenues from that segment rising 11% year over year in the second quarter and accounting for 15% of total revenues.
HWM has been witnessing robust orders for engine spares for the F-35 program and spares for other legacy fighters, supported by the fiscal year 2026 Defense Appropriations Act signed into law in February 2026.
In April 2026, Howmet completed the acquisition of Stanley Black’s business unit, Consolidated Aerospace Manufacturing LLC, known as CAM, for $1.8 billion, expanding its aerospace fastening solutions portfolio.
The company also reinforced its commitment to shareholders by hiking its dividend 17% in July 2026 to 14 cents per share, while repurchasing shares worth $800 million year to date through July.
Shares of HWM have gained 57.3% over the past year, far outpacing the industry’s 4.7% growth and the S&P 500 composite’s 22.8% return over the same period.
HWM also outperformed peers RTX Corporation (RTX) and Textron Inc. (TXT), which returned 44.7% and 12.9%, respectively, during the same timeframe.
Analyst sentiment has strengthened alongside the results, with the Zacks Consensus Estimate for 2026 earnings climbing 5.5% to $5.18 per share, implying year-over-year growth of 37.4%.
The consensus estimate for 2027 earnings moved up 3.4% to $6.05 per share, indicating anticipated year-over-year growth of 16.8% as the business continues scaling.
Valuation remains a point of caution, with HWM trading at a forward 12-month price-to-earnings ratio of 50.98X, well above the industry average of 34.49X.
RTX Corp. and Textron trade at significantly lower multiples of 29.69X and 12.74X, respectively, making HWM’s premium valuation a potential concern for value-focused investors.
Despite the elevated valuation, strong growth prospects across commercial and defense aerospace, combined with positive analyst revisions, support the case for investing in HWM at current levels.
Howmet Aerospace carries a Zacks Rank No. 2, or Buy, reflecting broad analyst confidence that the company’s momentum will continue through the remainder of 2026 and into 2027.
