Howmet Aerospace Raises Outlook and Adds $5 Billion to Buyback After Record 25% Organic Growth

Howmet Aerospace topped the high end of its own third-quarter guidance on Thursday, posting record 25% organic revenue growth, raising its full-year outlook and adding $5 billion to its share buyback program, according to its earnings release filed with an 8-K.

Revenue rose 29% to $2.70 billion from $2.09 billion a year earlier. Adjusted EPS jumped 54% to $1.46, and GAAP EPS rose 49% to $1.42.

Executive Chairman and CEO John Plant called it "the strongest quarterly growth rate on record for Howmet."

Guidance moves higher again

Howmet raised its 2026 baseline guidance to revenue of $10.30 billion, up $250 million, and adjusted EPS of $5.50, up $0.23. It now expects free cash flow of about $2.0 billion, up $100 million, and adjusted EBITDA of $3.33 billion at a 32.3% margin.

For the fourth quarter, the company guided revenue of $2.74 billion to $2.76 billion and adjusted EPS of $1.49 to $1.51.

Plant also previewed 2027, saying the company envisions revenue of about $11.5 billion, roughly 12% growth from the increased 2026 guidance.

Gas turbines and engines lead

Engine Products, the largest segment, grew revenue 33% to $1.45 billion, and segment adjusted EBITDA rose 57% to $567 million, lifting its margin about 580 basis points to 39.1%. Fastening Systems revenue climbed 41% to $630 million, or 10% excluding the CAM and Brunner acquisitions.

Engineered Structures revenue slipped 4% to $295 million after the divestiture of the Savannah disk forging facility, while Forged Wheels revenue rose 32% to $327 million on higher commercial transportation volumes and aluminum cost pass-through.

Plant said Howmet does not expect any material impact on its spares demand from the Middle East conflict, citing the backlog of engine shop visits.

Margins and cash

Adjusted EBITDA rose 43% to $879 million, and the adjusted EBITDA margin expanded about 310 basis points to 32.5%. Free cash flow was $562 million after $147 million of capital expenditures, up from $423 million a year earlier.

Bigger buyback

Howmet repurchased $500 million of stock in the quarter at an average price of $264.77 a share, retiring about 1.9 million shares, and $1.1 billion year to date through Oct. 28. On Oct. 28, the board increased the repurchase authorization by $5 billion, bringing the total to $5.397 billion.

The company raised its quarterly dividend 17% to $0.14 a share in the third quarter.

By the numbers

• $2.70 billion: third-quarter revenue, up 29%
• $1.46: adjusted EPS, up 54%
• 32.5%: adjusted EBITDA margin
• 45%: gas turbines revenue growth
• $5.50: new 2026 adjusted EPS baseline guidance
• $5.397 billion: total buyback authorization after the $5 billion increase

Sources

1. Howmet Aerospace Form 8-K with third-quarter 2026 earnings release (Exhibit 99.1), filed Oct. 29, 2026 (accession 0001104659-26-119857)

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