Howmet Aerospace reported strong third-quarter growth, with revenue rising 29% year over year and operating margins expanding. The aerospace and industrial components maker also increased its 2026 outlook, set a revenue target for 2027, and stepped up capital returns through share repurchases and a higher dividend.
Key details
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Revenue and earnings accelerated. Third-quarter revenue was $2.70 billion, up 29% from a year earlier; organic growth was 25%. GAAP earnings per share rose 49% to $1.42, while adjusted EPS increased 54% to $1.46.
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Margins improved. Operating income increased 43% to $777 million. The operating margin rose to 28.7%, from 25.9% a year earlier. Adjusted EBITDA was $879 million, up 43%, with its margin increasing to 32.5% from 29.4%.
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Cash generation was higher. Cash from operations reached $709 million, up 34%. Free cash flow was $562 million, up 33%.
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Results for the first nine months also strengthened. Revenue totaled $7.56 billion, up 24% year over year. GAAP EPS was $4.18, up 50%, and free cash flow was $1.40 billion, up 55%.
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The company returned capital to shareholders. Howmet repurchased $500 million of common stock in the third quarter and $1.1 billion year to date. Its board authorized an additional $5 billion for repurchases, bringing total authorization to $5.397 billion. The quarterly dividend was raised 17% to 14 cents per share.
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Howmet raised its 2026 guidance. The release says the company increased its full-year outlook but does not provide the revised 2026 figures in the information presented here.
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The company set a 2027 revenue target. Howmet expects approximately $11.5 billion in revenue in 2027, about 12% above its 2026 level.
The results show higher sales alongside expanding margins and stronger cash generation. The expanded repurchase authorization and dividend increase also represent a larger stated capacity for shareholder returns.