Howmet’s second quarter was marked by broad-based growth across its end markets, with management highlighting strong demand from both commercial and defense aerospace customers as well as the industrial gas turbine segment. The company’s leadership attributed the performance to increased aircraft build rates, elevated spares activity, and a recovery in commercial transportation. CEO John Plant emphasized that organic growth remained robust even after accounting for recent acquisitions, with spares revenue now representing a larger portion of sales than in prior years. Plant noted, “Commercial aerospace growth was strong at 28%, driven by demand for both new builds and spares.”
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Howmet (HWM) Q2 CY2026 Highlights:
- Revenue: $2.55 billion vs analyst estimates of $2.43 billion (24.1% year-on-year growth, 4.9% beat)
- Adjusted EPS: $1.33 vs analyst estimates of $1.25 (6.7% beat)
- Adjusted EBITDA: $817 million vs analyst estimates of $773 million (32.1% margin, 5.7% beat)
- The company lifted its revenue guidance for the full year to $10.05 billion at the midpoint from $9.65 billion, a 4.1% increase
- Management raised its full-year Adjusted EPS guidance to $5.27 at the midpoint, a 6.7% increase
- EBITDA guidance for the full year is $3.23 billion at the midpoint, above analyst estimates of $3.12 billion
- Operating Margin: 27.9%, up from 25.4% in the same quarter last year
- Market Capitalization: $112.3 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Howmet’s Q2 Earnings Call
- Sheila Kahyaoglu (Jefferies) pressed CEO John Plant on Howmet’s technology advantage and ability to support IGT capacity ramps. Plant responded that market share and new investments should enable Howmet to meet demand, with further gains expected from new product introductions.
- Douglas Harned (Bernstein) asked about Howmet’s responsiveness to rapid IGT demand increases. Plant explained that while yield improvements have accelerated recent growth, major new capacity additions will be staged over several years due to equipment lead times.
- Robert Stallard (Vertical Research) questioned whether Howmet has sufficient aerospace OEM capacity for rising wide-body rates. Plant stated that current and planned expansions will accommodate both narrow- and wide-body build increases.
- Scott Deuschle (Deutsche Bank) sought clarity on the adoption of multi-chemistry coatings and the scale of that growth opportunity. Plant confirmed that new coating technology is being deployed and investments are ongoing to expand these capabilities.
- Seth Seifman (JPMorgan) asked about capacity utilization and sequential sales ramp in Engine Products. Plant indicated that some new machines are still being brought to full rate and additional equipment is planned to support anticipated growth.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be watching (1) the pace at which Howmet executes its planned capacity expansions in aerospace and gas turbines, (2) progress on realizing cost synergies and operational improvements from recent acquisitions, and (3) sustained growth in high-margin spares and advanced coating products. The trajectory of global aircraft build rates and industrial energy demand will also be critical for ongoing momentum.
Howmet currently trades at $282.95, down from $291.42 just before the earnings. Is there an opportunity in the stock? See for yourself in our full research report (it’s free).
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