HWM US S&P 500Russell 1000 Earnings call
Howmet Aerospace (HWM) · Q2 2026 results and valuation
Share price: $224.00 · 2026-11-11
Howmet Aerospace provides engineered solutions for the aerospace, defense, and commercial transportation industries. The company manufactures jet engine components, fastening systems, airframe structural parts, and forged aluminum wheels for global markets. It operates in 19 countries and serves customers in the aerospace, gas turbine, and transportation sectors. Source: 10-K annual report (2026-02-12)
Results Q2 2026 vs Q1 2026 · previous quarter · published 6 Aug 2026 and 7 May 2026
Net income down 7.9% on the previous quarter. Management sounded cautious, though noticeably more positive answering analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−7.9%
Net income vs Q1 2026
Outlook given
Net income 534.0M vs 580.0M
Revenue +10.1%
2 · How management spoke
Cautious
Among the least upbeat of all company calls
Answers to analysts: very upbeat, and more positive than the script.
Last call it was different: script and answers matched.
3 · What stood out
Figure
Headline revenues were up 24% year-over-year with strong incremental margins of 46%, and that was after some impact from the CAM acquisition.
Valuation
Is Howmet Aerospace undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 13.4% growth a year (3-year revenue growth), the model's fair value is $97.84 a share — the stock trades 129% above it. Today's price assumes 23.9% growth a year.
Current price
$224.00
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+23.9% for 10 yrs
Fair value / share
$97.84
Buy below
$73.38
Price vs fair value
Overvalued 129%
Price vs buy-below price
Overvalued >200%
Read between the lines
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Key theme
Quarter free cash flow was just under $0.5 billion and free cash flow totaled approximately $840 million for the first half.
Source quote
“Second quarter free cash flow was just under $0.5 billion and free cash flow totaled approximately $840 million for the first half. Operating margin was 28.8%. Earnings per share were $1.33, an increase of 46% year-over-year.”
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Guidance
In November, at its Q3 earnings call, Howmet Aerospace expects to provide its first sighting of the 2027 revenue, which it expects will be an increase over 2026.
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Fading
In fact, when I was in Japan last week looking at Howmet Aerospace's new manufacturing plant there, which was mainly focused on the Gas Turbine business…
Source quote
“And in fact, when I was in Japan last week looking at our new manufacturing plant there, which was mainly focused on the Gas Turbine business... So trying to provide a good work environment and at the same time, also automate. or Europe and also the importance of trying to find additional areas of automation...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Management was more positive answering analysts than in its script — usually a sign it was comfortable with the details it was asked about.
Sentences that drove the tone
“It's very difficult to predict the date of entry into service of a new narrow-body, and it's probably even more difficult to predict what form the engines are on those,...”
“And it's a big solution to solve what may be a permitting problem at the moment.”
“And there's been a lot of commentary in recent years about those weak links and the supply base, as you know, has been held as responsible for much of the...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 2.55B | 2.31B | +10.1% | 2.05B | +24.1% |
| Operating income | 711.0M | 753.0M | −5.6% | 521.0M | +36.5% |
| Net income | 534.0M | 580.0M | −7.9% | 407.0M | +31.2% |
| EPS | 1.33 | 1.44 | −7.6% | 1.00 | +33.0% |
| P/E today 49.5 | 57.9 | 53.5 | +4.4 | 54.4 | +3.5 |
Topics
Most discussed now
- Gas turbine growth is driven by the increased demand for electricity generation, especially from natural gas for data centers.
- New It's going to be additional equipment that Howmet Aerospace has to install from what it has already committed to and contracted either...
- Excluding the net impact of the 3 transactions Howmet Aerospace completed this year, revenue was up 21% year-over-year, an acceleration…
- The tailwinds experienced have reflected more robust build rates for commercial aircraft and also for the positive order intake for...
- The business jet segment also continues to be strong with increases both in new aircraft build and spares.
Faded since Q1 2026
- Fading Cash generation was $359 million, reflecting strong earnings and continued improvement in working capital efficiency.
- Fading The EBITDA margin rate was 32%, and this margin was an increase of 320 basis points over the equivalent quarter...
- Fading Within Howmet's markets, Howmet Aerospace had a robust spares growth.
- Fading Defense Aerospace growth continued at 10%, including healthy spares activity.
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
Howmet Aerospace reported second-quarter 2026 revenue of $2.547 billion, an increase of 24% compared to $2.053 billion in the same period of 2025.
- Other events · SEC 8-K
Howmet Aerospace filed an 8-K to recast historical segment information by moving a titanium alloy location from Engine Products to Engineered Structures, which had no impact on consolidated results or financial position.
- Shareholder vote results · SEC 8-K · routine
- Results of operations · SEC 8-K
Howmet Aerospace reported first-quarter 2026 revenue of $2.313 billion, up 19% year over year, with adjusted EPS of $1.22, up 42% compared to the previous year.
- Regulation FD disclosure · SEC 8-K
Howmet Aerospace Inc. released its 2025 Environmental, Social and Governance Report on its website on April 6, 2026.
- Acquisition or disposal · SEC 8-K
Howmet Aerospace Inc. completed the acquisition of Consolidated Aerospace Manufacturing from Stanley Black & Decker for a cash purchase price of approximately $1.8 billion on April 6, 2026.
- Regulation FD disclosure · SEC 8-K
Howmet Aerospace Inc. posted its Technology and Markets Day presentation on March 10, 2026, containing forward-looking statements and non-GAAP financial measures.
- New financial obligation; Other events · SEC 8-K