Howmet Aerospace Inc. (NYSE: HWM) delivered stronger-than-expected second-quarter 2026 results on August 6, with earnings per share beating the Zacks Consensus Estimate by 8.1% and surging 46% year over year.
Total revenues reached $2.55 billion, exceeding the consensus estimate of $2.41 billion and marking a 24% increase compared to the same period last year.
The company’s performance was driven by persistent strength across both its commercial and defense aerospace market segments, which continued to deliver solid financial and operational results.
Backed by the robust quarterly performance, Howmet raised its full-year 2026 revenue outlook to between $10.00 billion and $10.10 billion, up from its prior guidance of $9.575 billion to $9.725 billion.
Adjusted EBITDA guidance was also lifted to a range of $3.21 billion to $3.25 billion, compared to the previous projection of $3.025 billion to $3.095 billion, while adjusted earnings per share guidance increased to $5.23-$5.31 from $4.88-$5.00.
Commercial aerospace remains the strongest driver of Howmet’s business, with revenues from that segment surging 28% year over year in the second quarter and accounting for 53% of total company revenue.
Growing demand for engine spares, a record backlog for fuel-efficient aircraft, healthy Airbus build rates for the A320 and A350, and a production recovery in the Boeing 737 MAX all support continued momentum for the company.
Defense aerospace provided another layer of growth, with revenues from that segment rising 11% year over year in the second quarter and representing 15% of total revenues, supported by robust orders for F-35 engine spares and other legacy fighter programs.
In April 2026, Howmet completed the acquisition of Stanley Black’s business unit, Consolidated Aerospace Manufacturing LLC, known as CAM, for $1.8 billion, strengthening its aerospace fastening solutions portfolio with well-known brands and engineering expertise.
The company also demonstrated a commitment to shareholder returns, paying $97 million in dividends in the first half of the year and repurchasing $800 million worth of shares year-to-date through July, in addition to hiking its dividend by 17% to 14 cents per share in July.
HWM shares have gained 57.3% over the past year, significantly outpacing the industry’s 4.7% growth and the S&P 500’s 22.8% return over the same period.
The stock has also outperformed peers RTX Corporation (NYSE: RTX) and Textron Inc. (NYSE: TXT), which returned 44.7% and 12.9%, respectively, over the same timeframe.
Analyst sentiment has grown more bullish in recent months, with the Zacks Consensus Estimate for 2026 earnings rising 5.5% to $5.18 per share, implying year-over-year growth of 37.4%, while the 2027 consensus moved up 3.4% to $6.05 per share, reflecting expected growth of 16.8%.
Valuation remains a potential concern, with HWM trading at a forward 12-month price-to-earnings ratio of 50.98X, well above the industry average of 34.49X and significantly higher than RTX Corp. at 29.69X and Textron at 12.74X.
Despite the premium valuation, the combination of strong aerospace demand, a raised full-year outlook, disciplined capital returns, and positive analyst revisions positions Howmet as a compelling opportunity for investors willing to pay for quality growth.
