Howmet Aerospace (HWM) Tops Q3 Estimates as Engine Sales Grow 33%

Howmet Aerospace (HWM) reported third-quarter revenue of $2.70 billion, up 29% year on year and ahead of the roughly $2.59 billion analysts expected, according to GuruFocus and Rallies. Adjusted earnings of $1.46 a share, up 54% from 95 cents, beat estimates of $1.36 to $1.37. The results came out before the market opened on Thursday, and the stock jumped 5.5% that day to close at $205.94.

The shares slipped back on Friday. Howmet was down 1.4% at $203.07 as of 9:31 a.m. ET.

What stood out

Jet engines drove the quarter. Howmet makes engine parts such as turbine blades, plus fasteners and structural parts for aircraft, and its Engine Products segment grew revenue 33% to about $1.45 billion, according to the release and Benzinga. Within that segment, commercial aerospace sales rose 39% and sales for gas turbines, used in power plants, rose 44%.

The segment also became more profitable. Its EBITDA, a measure of operating profit before interest, taxes, and depreciation, rose 57% to $567 million, and the margin widened about 5.8 points to 39.1%, StockTitan reported from the release.

Executive Chairman and Chief Executive John Plant said the 25% organic growth was the strongest quarterly rate on record for Howmet, according to the release. On the call, he said turbine blades are sold out into the early 2030s for certain customers and that Howmet is adding capacity to meet demand.

The outlook

Howmet raised its 2026 forecast to revenue of about $10.3 billion, adjusted earnings of about $5.50 a share, and free cash flow of about $2.0 billion, according to the release and Yahoo Finance. It also gave an early look at 2027, projecting about $11.5 billion of revenue, roughly 12% growth.

The board added $5 billion to its share buyback authorization, bringing it to $5.4 billion, after Howmet spent $500 million buying back stock in the third quarter.

Thursday’s gain was Howmet’s biggest since 11 June, when it rose 6.1%. Even so, the stock was up just 0.5% this year at Thursday’s close and sat 29.6% below its 52-week closing high of $292.65 from 18 August.

Our take

This was a strong quarter on every line, with a higher forecast, a first look at 2027, and more cash going back to shareholders. The engine and gas turbine businesses are growing fast enough to carry the company. Next quarter we’d watch whether the new blade capacity comes on as planned, because demand is not what limits Howmet’s growth.