Pittsburgh, May 7, 2026, 12:04 (EDT)
Shares of Howmet Aerospace shot higher Thursday as the Pittsburgh-based aircraft-parts supplier topped Wall Street’s first-quarter forecasts and raised its guidance for 2026, citing robust orders from commercial aerospace, defense, and gas turbine segments. Quarterly revenue jumped 19% to $2.31 billion, with adjusted EPS up 42% to $1.22.
Why does the update catch attention now? Investors are watching for signs that aerospace suppliers remain able to capitalize on Boeing and Airbus production bumps—even as supply chains stay tight and geopolitics disrupt. On top of that, U.S. aerospace suppliers are riding a wave of increased defense budgets. Conflicts in Ukraine and Iran have been depleting missile reserves, Reuters noted in a report published via The Economic Times.
Howmet’s numbers are in the spotlight, gauging if surging appetite for engine parts and fasteners is enough to counter transportation headwinds and broader economic uncertainty. Engine “spares”—those replacement pieces for engines already out in the field—remain in high demand, according to Chief Executive John Plant. He flagged ongoing growth, but warned, “an effect could be felt from the Iranian conflict.” Howmet
Howmet is now eyeing $9.575 billion to $9.725 billion in revenue for 2026, bumping its midpoint up by $550 million from the earlier target. For the full year, adjusted EPS is seen landing between $4.88 and $5.00. In the second quarter, the company projects adjusted earnings per share in the $1.22 to $1.24 range, with revenue coming in between $2.39 billion and $2.41 billion.
Howmet posted adjusted EPS of $1.22, easily surpassing the $1.11 Wall Street was looking for. Revenue also landed ahead of expectations at more than the $2.24 billion LSEG had penciled in, Reuters reported. The company pointed to a 20% jump in commercial aerospace sales, a 10% uptick in defense aerospace, and a sharp 39% gain for gas turbines as key drivers of revenue growth.
Plant described Howmet’s opening to 2026 as “strong,” pointing out that revenue, adjusted EBITDA, and adjusted EPS each topped the upper limit of guidance. Adjusted EBITDA, for reference, strips out interest, taxes, depreciation, amortization, and certain other items. Howmet
“Commercial aerospace OEM customers continue to target production rate increases supported by record backlogs,” Plant said. OEMs—here referring to aircraft and engine manufacturers—source Howmet parts for their new builds. Howmet
Howmet’s largest business, Engine Products, delivered a 29% jump in third-party sales, totaling $1.25 billion. Fastening Systems brought in $471 million, up 14%. Engineered Structures declined 3%—the company is still streamlining products there. Forged Wheels revenue moved up 17%, though commercial transportation volumes dropped 11%.
The raised outlook reflects some portfolio shuffling. Howmet wrapped up its $1.8 billion deal for Consolidated Aerospace Manufacturing on April 6. It picked up Brunner Manufacturing in February for around $120 million, and offloaded its disk forging plant in Savannah, Georgia, fetching close to $230 million in March. According to the company, these moves together push 2026 guidance up by about $275 million in net revenue. EPS takes a back seat this year, but accretion is due in 2027.
Investors zeroed in on cash generation. Free cash flow jumped to $359 million, up from $134 million a year ago. Howmet also bought back $300 million of its own shares in the first quarter, then spent another $150 million on repurchases in April. As of May 4, roughly $1.05 billion remained available under the current buyback program.
Howmet climbed 7.7% to $276.16, hitting an intraday peak of $290. That jump left its closest aerospace and defense rivals trailing: TransDigm added roughly 2.2%, GE Aerospace barely moved, while RTX slipped 1.0% during Thursday’s session.
There’s a catch: the same factors fueling demand could just as easily turn against it. Howmet’s CEO, as cited by Reuters, highlighted “ongoing uncertainty” related to Iran. The company’s forward-looking statements don’t stop there—energy costs, shifting trade policy, snags in the supply chain, manufacturing setbacks, acquisition integration headaches, or simply failing to keep up if demand surges—all remain on the risk list. MarketScreener
Howmet isn’t ready to call a rebound in commercial transportation, even as demand starts to pick up. The key for investors right now: it’s not if aircraft backlogs are there — they are — but whether suppliers like Howmet can actually convert those orders into deliveries and hold onto the margin improvements seen this quarter.
