Howmet Aerospace Inc. (NYSE: HWM) reported second quarter 2026 revenue of $2.55 billion, up 24% year over year, and raised its full-year guidance after results exceeded the high end of expectations across all key metrics. The Pittsburgh-based aerospace and industrial components manufacturer posted organic revenue growth of 21%.
The results mark a continuation of the growth trajectory the company has sustained since its 2020 separation from Arconic Corporation, driven by rising commercial aircraft production rates and increasing demand for gas turbine components. Howmet competes primarily with Precision Castparts, a Berkshire Hathaway subsidiary, and Safran in the aerospace engine components market.
#Revenue Growth Was Led by Gas Turbines and Commercial Aerospace
Revenue growth in the quarter was driven by a 38% increase in the gas turbines market, a 28% increase in commercial aerospace, and an 11% increase in defense aerospace.
Adjusted EBITDA rose 39% year over year to $817 million. Adjusted EBITDA margin expanded 340 basis points to 32.1%.
Adjusted earnings per share were $1.33, up 46% from $0.91 in the prior-year quarter. GAAP earnings per share were also $1.33, up 33% from $1.00 a year earlier.
Free cash flow was $479 million after $104 million in capital expenditures, up 39% year over year.
Engine Products, the company's largest segment, reported revenue of $1.37 billion, up 32%, with segment adjusted EBITDA margin expanding 470 basis points to 37.7%. The segment added approximately 485 net headcount in the quarter to support anticipated production increases.
Fastening Systems reported revenue of $589 million, up 37%, reflecting contributions from the CAM and Brunner acquisitions completed earlier in the year. Segment adjusted EBITDA margin rose 90 basis points to 30.1%.
Engineered Structures revenue declined 13% to $269 million following the divestiture of its Savannah disk forging facility and product rationalization. Despite lower revenue, the segment's adjusted EBITDA margin rose 170 basis points to 23.8% as lower-margin work was exited.
Forged Wheels revenue increased 14% to $316 million, with volumes rising 7% sequentially from the first quarter as the North American commercial transportation market began to recover, the company said.
#Howmet Completed the $1.8 Billion CAM Acquisition in April
On April 6, 2026, the company completed its acquisition of Consolidated Aerospace Manufacturing from Stanley Black & Decker for approximately $1.8 billion. CAM manufactures precision fasteners, fluid fittings, and engineered products for aerospace and defense applications.
The company also paid down a $186 million Japanese yen-denominated term loan and entered into a $300 million cross-currency swap, reducing annualized interest expense by $12 million, the company said.
"The Howmet team delivered a strong set of results, with revenue, adjusted EBITDA, adjusted EBITDA margin, and adjusted earnings per share all exceeding the high end of guidance," John Plant, Executive Chairman and Chief Executive Officer, said in the earnings release.
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#Capital Returns Accelerated With $800 Million in Year-to-Date Buybacks
Howmet repurchased $300 million of common stock in the second quarter at an average price of $250.61 per share. An additional $200 million was repurchased in July at an average price of $276.61 per share.
Year-to-date share repurchases through July totaled $800 million, exceeding the $700 million repurchased in all of 2025. As of August 6, 2026, the company had $697 million remaining under its share repurchase authorization.
The company also raised its quarterly dividend by 17% to $0.14 per share for the third quarter.
#Management Raised Full-Year Guidance Across All Metrics
For the full year 2026, Howmet raised its guidance to revenue of $10 billion or more, adjusted EBITDA of $3.21 billion or more, adjusted earnings per share of $5.23 or more, and free cash flow of $1.85 billion or more.
For the third quarter, the company guided for revenue of $2.565 billion to $2.585 billion and adjusted earnings per share of $1.34 to $1.36.
Management said it expects capital expenditure requirements to increase further in 2027 to support growth in the aerospace and gas turbines markets. The company said it expects to return to pre-CAM leverage levels quickly given its cash generation rate.
Tariff and trade policy disruptions, integration risk from the CAM acquisition, customer concentration, supply chain constraints, and macroeconomic conditions remain key risks to the outlook, the company noted in its forward-looking disclosures.