Howmet Aerospace Q2 revenue beats estimates on strong market demand
Howmet Aerospace Q2 revenue beats estimates on strong market demand
Overview
U.S. aerospace components supplier's Q2 revenue rose 24% yr/yr, beating analyst expectations
Adjusted EPS for Q2 rose 46% yr/yr to $1.33
Company completed $1.8 bln CAM acquisition and repurchased $300 mln of stock in Q2
Outlook
Howmet Aerospace raises 2026 revenue guidance to $10 bln-$10.1 bln from prior baseline
Company lifts 2026 adj EBITDA forecast to $3.21 bln-$3.25 bln, up $170 mln from baseline
Howmet sees 2026 adj EPS at $5.23-$5.31, up $0.33 from previous baseline
Result Drivers
MARKET DEMAND - Revenue growth driven by strong demand in commercial aerospace, defense aerospace, and gas turbines markets
ACQUISITION IMPACT - CAM acquisition contributed to Fastening Systems segment growth and margin expansion
SEGMENT RATIONALIZATION - Engineered Structures revenue declined due to Savannah facility divestiture and product rationalization
Company press release: ID:nPn763X74a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $2.55 bln | $2.43 bln (17 Analysts) |
Q2 Adjusted EPS |
| $1.33 |
|
Q2 EPS |
| $1.33 |
|
Q2 Net Income |
| $534 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for Howmet Aerospace Inc. is $311.00, about 6.7% above its August 5 closing price of $291.42
The stock recently traded at 52 times the next 12-month earnings vs. a P/E of 49 three months ago
Reuters Recommended Reads
Aug 5 - Newly spun-off Honeywell Aerospace cuts 2026 forecast on supply-chain woes
Aug 4 - TransDigm lifts 2026 forecast on robust aftermarket aircraft parts demand
Aug 5 - Curtiss-Wright Q2 EPS beats estimates as margins expand
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)