Howmet Aerospace (HWM) Q1 2026 Financial Results Summary

PITTSBURGH, PA, May 7, 2026 – Howmet Aerospace (NYSE: HWM) has released its financial results for the first quarter of 2026.

Summary Financial Results

• Revenue: $2,313 million, up 19% compared to Q1 2025 ($1,942 million).
• Operating Income: $753 million, a 52% increase from $494 million in Q1 2025.
• Operating Income Margin: 32.6%, an increase of 720 basis points compared to 25.4% in the same quarter last year.
• Earnings per Share (EPS):
  • GAAP: $1.44, up 71% from $0.84.
  • Adjusted EPS: $1.22, up 42% from $0.86.
• Cash from Operations: $453 million, reflecting a 79% increase compared to $253 million in Q1 2025.
• Adjusted EBITDA: $740 million, up 32% from $560 million.
• Adjusted EBITDA Margin: 32.0%, an increase of 320 basis points from 28.8%.
• Adjusted Operating Income: $666 million, up 36% from $491 million.
• Adjusted Operating Income Margin: 28.8%, an increase of 350 basis points compared to 25.3%.
• Free Cash Flow: $359 million, a significant increase of 168% from $134 million.

Key Activity

• Acquisitions:
  • Completed the acquisition of Consolidated Aerospace Manufacturing, LLC (CAM) on April 6, 2026, for approximately $1.8 billion.
  • Acquired Brunner Manufacturing Co. Inc. on February 6, 2026, enhancing fastener product offerings for about $120 million.
• Divestiture: Sold the disk forging facility in Savannah, GA, for approximately $230 million.

Shareholder Returns

• Common Stock Repurchases:
  • Repurchased $300 million of common stock in Q1 2026 at an average price of $230.43 per share.
  • An additional repurchase of $150 million was completed in April 2026 at an average price of $246.18 per share. Total repurchase authorization remaining is $1,047 million.
• Quarterly Dividend:
  • Declared a quarterly dividend of $0.12 per share, which is a 20% increase from $0.10 per share declared in Q1 2025, paid on May 26, 2026.

Segment Results

• Engine Products:
  • Revenue: $1,253 million, a 29% increase year over year from $974 million.
  • Adjusted EBITDA: $458 million, an increase of 44% from $318 million.
  • EBITDA Margin: 36.6%, up 400 basis points from 32.6%.
• Fastening Systems:
  • Revenue: $471 million, a 14% increase from $412 million.
  • Adjusted EBITDA: $150 million, up 18% from $127 million.
  • EBITDA Margin: 31.8%, up 100 basis points.
• Engineered Structures:
  • Revenue: $294 million, a 3% decrease from $304 million.
  • Adjusted EBITDA: $66 million, down 1% from $67 million.
  • EBITDA Margin: 22.4%, an increase of 40 basis points.
• Forged Wheels:
  • Revenue: $295 million, a 17% increase from $252 million.
  • Adjusted EBITDA: $90 million, up 32% from $68 million.
  • EBITDA Margin: 30.5%, an increase of 350 basis points.

Guidance

• Increased Full Year 2026 Guidance:
  • Revenue expected to be between $9.575 billion and $9.725 billion.
  • Adjusted EBITDA expected to be between $3.025 billion and $3.095 billion.
  • Adjusted EPS guidance between $4.88 and $5.00.

Credit Ratings

Fitch Ratings upgraded Howmet Aerospace to A- on February 13, 2026.

Conclusion

Howmet Aerospace's financial results for Q1 2026 demonstrate strong growth across all segments and efficient capital management, exemplified by significant stock repurchases and an increased dividend. The company's proactive approach in acquisitions and divestitures reflects its strategic positioning in the aerospace and defense markets.

Income Statement Table (Statement of Consolidated Operations)

Note: All amounts in the table are in millions.

Quarter ended	March 31, 2026	December 31, 2025	March 31, 2025
Sales	$2,313	$2,168	$1,942
Cost of goods sold (exclusive of expenses below)	$1,459	$1,412	$1,290
Selling, general and administrative expenses	$111	$96	$85
Research and development expenses	$9	$10	$8
Provision for depreciation and amortization	$74	$73	$69
Restructuring and other (credits) charges	($93)	$88	($4)
Operating income	$753	$489	$494
Loss on debt redemption	—	$15	—
Interest expense, net	$43	$37	$39
Other expense, net	$2	$7	$9
Income before income taxes	$708	$430	$446
Provision for income taxes	$128	$58	$102
Net income	$580	$372	$344
Amounts Attributable to Howmet Aerospace Common Shareholders
Earnings per share - basic(1): Net income per share	$1.45	$0.92	$0.85
Average number of shares(2)(3)	401	402	405
Earnings per share - diluted(1): Net income per share	$1.44	$0.92	$0.84
Average number of shares(2)(3)	403	404	407
Common stock outstanding at the end of the period	401	402	404

Balance Sheet Table (Consolidated Balance Sheet)

Note: All amounts in the table are in millions.

	March 31, 2026	December 31, 2025
Assets
Current assets: Cash and cash equivalents	$2,435	$742
Receivables from customers, less allowances of $— in both 2026 and 2025	$940	$779
Inventories	$1,975	$1,849
Prepaid expenses and other current assets	$307	$409
Total current assets	$5,657	$3,779
Properties, plants, and equipment, net	$2,614	$2,593
Goodwill	$4,078	$4,022
Deferred income taxes	$35	$40
Intangibles, net	$451	$457
Other noncurrent assets	$232	$288
Total assets	$13,067	$11,179
Liabilities
Current liabilities: Accounts payable, trade	$1,058	$845
Accrued compensation and retirement costs	$263	$343
Taxes, including income taxes	$81	$77
Accrued interest payable	$39	$47
Deferred revenue	$129	$147
Other current liabilities	$109	$121
Long-term debt due within one year	$186	$191
Short-term borrowings	$450	—
Total current liabilities	$2,315	$1,771
Long-term debt, less amount due within one year	$4,050	$2,859
Accrued pension benefits	$533	$546
Accrued other postretirement benefits	$36	$38
Other noncurrent liabilities and deferred credits	$611	$612
Total liabilities	$7,545	$5,826
Equity
Howmet Aerospace shareholders’ equity: Common stock	$401	$402
Additional capital	$2,187	$2,531
Retained earnings	$4,625	$4,093
Accumulated other comprehensive loss	($1,691)	($1,673)
Total equity	$5,522	$5,353
Total liabilities and equity	$13,067	$11,179

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