Howmet Aerospace Announces $5B Buyback, Raises 2026 Guidance As Q3 Earnings Beat Estimates

• Howmet’s Q3 revenue jumped 29% to $2.70 billion, while adjusted EPS rose to $1.46, beating Street estimates.
• The company repaid $60 million in commercial paper borrowings, leaving $390 million outstanding at quarter-end.
• Howmet raised its 2026 revenue guidance by $250 million to around $10.3 billion and projected 2027 revenue of $11.5 billion.

Howmet Aerospace (HWM) announced a new $5 billion share buyback plan, adding to its existing authorization, after reporting better-than-expected fiscal third-quarter (Q3) earnings and raising its full-year guidance.

The company repurchased $500 million worth of shares during the third quarter, taking year-to-date repurchases to $1.1 billion. The aerospace firm now has about $5.4 billion available for share repurchases.

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Howmet also repaid $60 million in commercial paper borrowings during the quarter, leaving $390 million outstanding under its $1 billion program.  As of this writing, HWM stock was up over 7% in Thursday's premarket trading.

Howmet Aerospace’s Q3 Earnings Beat Estimates

Howmet's third-quarter revenue rose 29% year over year to $2.70 billion, exceeding analysts' consensus estimate of $2.59 billion. 

Adjusted earnings per share (EPS) increased to $1.46 from $0.95 a year earlier, beating the $1.37 consensus estimate, according to FiscalAI.

Organic revenue growth reached 25%, driven by a 32% increase in commercial aerospace sales, 45% growth in the gas turbines market and a 10% increase in defense aerospace sales.

Howmet Raises Guidance, Sees 12% Revenue Growth In 2027

Howmet raised its full-year 2026 revenue guidance midpoint by $250 million to $10.3 billion and increased its adjusted EPS outlook to $5.50 from $5.27.

The Pennsylvania-based aerospace company also raised its free cash flow forecast to $2 billion from $1.9 billion. Looking ahead, Howmet projected around $11.5 billion in 2027 revenue, representing 12% growth over its increased 2026 outlook.

Commercial aerospace demand remains strong, supported by aircraft order backlogs and expected production increases through 2027 and beyond, said Executive Chairman and CEO John Plant.

Plant also highlighted strengthening gas turbine demand, with customers seeking higher volumes than previously anticipated, supporting the company's outlook beyond 2028.

Retail Investors’ Sentiment Around HWM Stock

On Stocktwits, retail investors’ sentiment around HWM stock remained ‘bullish’ amid ‘high’ message volume.

So far this year, HWM stock has fallen nearly 8%. By comparison, the iShares US Aerospace & Defense ETF (ITA), which holds the stock, has fallen over 6% during this period.

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