10-QPeriod: Q1 FY2026

Howmet Aerospace Inc. Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 7, 2026For Securities:HWM

Summary

Howmet Aerospace Inc. (HWM) reported a strong first quarter for 2026, with significant year-over-year growth in sales and net income. Sales increased by 19% to $2.31 billion, driven primarily by robust performance in the commercial aerospace, defense aerospace, and gas turbines markets. This top-line growth, coupled with improved cost management and favorable product pricing, led to a substantial increase in operating income and net income, which rose to $580 million from $344 million in the prior year's quarter. Diluted earnings per share grew to $1.44 from $0.84. The company also made strategic moves, including the acquisition of Brunner Manufacturing Co. Inc. and the significant acquisition of Consolidated Aerospace Manufacturing (CAM) in April 2026. Additionally, Howmet completed the sale of its disk forging facility, resulting in a notable gain. The company maintained a strong liquidity position, with a substantial increase in cash provided from operations and significant cash inflows from financing activities, largely to support strategic acquisitions. Despite increased debt associated with financing the CAM acquisition, the company's credit ratings remain investment grade.

Financial Highlights

49 data points
Beta

Revenue

$2.31B

Net Income

$580.00M

25.1% Net Margin

EPS (Diluted)

$1.44

Total Assets

$13.07B

Cash & Equivalents

$2.44B

Free Cash Flow

$359.00M

Financial Statements
Beta
Revenue$2.31B
R&D Expenses$9.00M
SG&A Expenses$111.00M
Operating Income$753.00M
Net Income$580.00M
EPS (Basic)$1.45
EPS (Diluted)$1.44
Shares Outstanding (Basic)401.00M
Shares Outstanding (Diluted)403.00M

Key Highlights

  • 1Significant sales growth of 19% to $2.31 billion, driven by strong performance in aerospace and gas turbine markets.
  • 2Net income surged by 69% to $580 million, translating to a diluted EPS of $1.44, up from $0.84 in the prior year.
  • 3Acquisition of Consolidated Aerospace Manufacturing (CAM) for approximately $1.8 billion, bolstering the Fastening Systems segment.
  • 4Successful divestiture of a disk forging facility generated a gain of $93 million, contributing positively to restructuring and other credits.
  • 5Operating cash flow increased substantially by 79% to $453 million, reflecting improved operational performance and working capital management.
  • 6The company raised $1.2 billion in new debt in March 2026, primarily to finance the CAM acquisition, and also utilized its commercial paper program.
  • 7Howmet's credit ratings were upgraded by S&P and Fitch, reflecting strong financial performance and capital allocation.

Frequently Asked Questions

The substantial increase in sales and net income was primarily driven by strong demand and growth in the commercial aerospace, defense aerospace, and gas turbines markets. Favorable product pricing and cost pass-through mechanisms also contributed to improved profitability. The Engine Products segment, in particular, showed significant growth in sales and Segment Adjusted EBITDA.

The acquisition of CAM, completed in April 2026 for approximately $1.8 billion, is expected to expand Howmet's aerospace fastening systems portfolio and increase its exposure to key aircraft and defense programs. The company financed this acquisition through a combination of new debt issuances ($1.2 billion in March 2026), its commercial paper program, and cash on hand. While this increased total debt, the company maintains investment-grade credit ratings and is integrating CAM into its Fastening Systems segment.

Howmet completed the sale of its disk forging facility in Savannah, Georgia on March 31, 2026, which resulted in a gain of $93 million. This gain was recorded under 'Restructuring and other credits' in the Statement of Consolidated Operations for the first quarter of 2026, significantly boosting this line item compared to the prior year.

Howmet anticipates continued demand growth in commercial aerospace, defense aerospace, and gas turbines markets. The Fastening Systems segment also expects growth in commercial aerospace. However, the commercial transportation market is expected to remain subdued with modest recovery. Key risks include geopolitical tensions, volatility in global energy and raw material markets, tariffs, inflation, and potential supply chain disruptions, all of which could impact future results. The company is also focusing on optimizing its manufacturing footprint and product mix, particularly in the Engineered Structures segment.