Howmet Aerospace Inc. (HWM)

Howmet Aerospace reported third quarter 2026 revenue of $2,703 million on 29 October, up 29 percent from a year earlier 2. Operating income was $777 million, and earnings per share under GAAP, the standard accounting rules, were $1.42 2. The results came with a Form 8-K under Item 2.02, results of operations 1.

Chief executive John Plant said revenue grew 29 percent and 25 percent organically, "the strongest quarterly growth rate on record for Howmet" 2. By market, revenue rose 32 percent in commercial aerospace, 10 percent in defense aerospace and 45 percent in gas turbines 2.

Fastening Systems revenue rose 41 percent to $630 million, which includes the CAM and Brunner acquisitions 2. Without them, the company says, that segment grew 10 percent 2.

On 28 October the board added $5 billion to the share repurchase program, bringing the total authorization to $5.397 billion 2. The company raised its 2026 revenue guidance to about $10,300 million and said it envisages about $11.5 billion in 2027, up about 12 percent 2.

Howmet Aerospace was named Alcoa Inc., a company formed in 1888, then Arconic Inc. after Alcoa Corporation was separated on 1 November 2016 4. On 1 April 2020 Arconic split again and took the name Howmet 4.

Howmet kept Engine Products, Fastening Systems, Engineered Structures and Forged Wheels in 2020, while its rolled products, extrusions and building systems went to Arconic Corporation 4. Since then it has been an aerospace parts maker with a truck wheel business 4.

Sales grew from $6,640 million in 2023 to $7,430 million in 2024, up 12 percent, and to $8,252 million in 2025, up 11 percent 4. The company credits commercial and defense aerospace, gas turbines, engine spares and higher product prices, partly offset by fewer commercial transportation volumes 4.

The mix moved toward aerospace 4. Commercial aerospace was 49 percent of sales in 2023 and 53 percent in 2025, while commercial transportation fell from 21 percent to 15 percent and gas turbines stayed near 10 to 11 percent 4.

Profit grew faster than sales 4. Cost of goods sold, what it costs to make the products, fell from 71.9 percent of sales in 2023 to 65.8 percent in 2025, on higher volumes, pricing and productivity 4. Net income reached $1,508 million in 2025, up 31 percent 4.

Two insured accidents closed out in 2024: a mechanical failure at the Barberton, Ohio wheel cast house and fires at a French fastener plant in 2019 4. The company was joined on 21 June 2024 to Grenfell Tower cladding proceedings brought against a former Arconic unit 4.

Debt came down 4. Total debt was $3,050 million, a net decrease of $265 million, after the early redemption of $625 million of notes due 2027 4. S&P raised its long-term rating on 8 September 2025 and Fitch on 13 February 2026 3.

It bought Brunner Manufacturing on 6 February and sold its Savannah, Georgia disk forging plant on 31 March for $230 million, a $93 million gain 43.

On 6 April 2026 it closed the purchase of Consolidated Aerospace Manufacturing from Stanley Black & Decker for about $1,812 million in cash 3. It had agreed the deal on 22 December 2025 4.

Engine Products

Engine Products makes investment castings, including airfoils, and seamless rolled rings, mainly for aircraft engines and industrial gas turbines 4. It is the largest segment, with $4,320 million of 2025 sales of $8,252 million, or 52 percent (computed) 4.

In the third quarter of 2026 its revenue was $1,451 million, up 33 percent, and its adjusted EBITDA margin, a profit measure before interest, tax and depreciation, was 39.1 percent 2.

Fastening Systems

Fastening Systems makes aerospace fasteners, which hold aircraft together, and fasteners for trucks, industry and energy equipment 4. Its 2025 sales were $1,745 million 4.

CAM makes fasteners, fluid fittings and connectors for aerospace and defense programs 3. Third quarter margin fell to 29.4 percent from 30.8 percent, which the company ties to the CAM acquisition 2.

Engineered Structures

Engineered Structures makes titanium ingots and mill products, forgings and machined parts for airframes, wings, engines and landing gear 4. In the third quarter its revenue was $295 million, down 4 percent after the Savannah sale 2.

Without that sale, the company says, revenue grew 8 percent 2. A titanium alloy site in Whitehall, Michigan moved here from Engine Products in 2026 5.

Forged Wheels

Forged Wheels makes forged aluminum wheels for heavy-duty trucks and buses under the Alcoa Wheels brand 4. The company says it invented the forged aluminum truck wheel in 1948 4.

Third quarter revenue was $327 million, up 32 percent, on higher volumes and aluminum cost pass through, and the margin fell to 26.3 percent 2.

Customers, plants, people and rivals

RTX and GE Aerospace each made up about 11 percent of 2025 third-party sales 4. Howmet operates in 19 countries and had about 25,430 employees at the end of 2025 4.

About 1,865 workers at the Whitehall, Michigan engine plant are covered by a United Auto Workers agreement that expires in April 2028 4. John Plant is Executive Chairman and Chief Executive Officer 2.

The 10-K names Berkshire Hathaway's Precision Castparts, VSMPO of Russia, ATI and Lisi Aerospace of France among its principal competitors 4.

Current problems

The Grenfell Tower claims are the main legal matter 4. The company and a former Arconic unit filed a defense and counterclaim on 18 July 2025, and a derivative suit settlement was approved on 10 February 2026 4.

The umbrella, in words

The main brand named in the annual report is Alcoa Wheels for forged truck wheels 4. Its Exhibit 21 lists subsidiaries such as Howmet Luxembourg, Howmet-Köfém Kft in Hungary and Howmet Holdings Limited in the United Kingdom, and omits others as not significant together 6.

The principal office is at 201 Isabella Street, Pittsburgh, and plants include Whitehall, Michigan, Barberton, Ohio and Washington, Missouri 4. The 10-K counted 7,801 holders of record on 9 February 2026, and 398 million shares were outstanding on 30 September 2026 43.

For the fourth quarter of 2026 the company guides to revenue of $2,740 million to $2,760 million and adjusted earnings per share of $1.49 to $1.51 2. For the full year it guides to free cash flow of $1,950 million to $2,050 million 2.

Full-year 2026 guidance is adjusted EBITDA of $3,325 million to $3,335 million and adjusted earnings per share of $5.49 to $5.51 2.

The company expects 2027 revenue of about $11.5 billion, up about 12 percent 2. Mr Plant said capital spending plans envisage elevated spend beyond 2027 to support aerospace, defense and gas turbines 2.

He also said gas turbine demand supports the outlook beyond 2028 and that no material hit to spares demand is expected from the Middle East conflict 2.

The repurchase program has no stated expiration, and the company may change or stop it at any time 34.