Howmet Aerospace Q1 Revenue Up 19% to $2.31B, EBITDA Margin Rises to 32.0%
HWM•Howmet Aerospace’s Q1 2026 revenue rose 19% to $2.31 billion with GAAP EPS of $1.44 and adjusted EPS of $1.22, while adjusted EBITDA margin expanded 320 bps to 32.0%. Free cash flow surged 168% to $359 million, funding $300 million in stock buybacks and completing the $1.8 billion CAM acquisition.
1. First Quarter Financial Results
Howmet reported Q1 2026 revenue of $2.31 billion, a 19% year-over-year increase, with operating income of $753 million, up 52%, and an operating margin of 32.6%, up 720 basis points. Adjusted EBITDA reached $740 million, a 32% rise, delivering a 32.0% margin and adjusted EPS of $1.22, up 42%.
2. Cash Generation and Capital Allocation
Cash from operations climbed 79% to $453 million, and free cash flow surged 168% to $359 million after $94 million in capital expenditures. The company deployed $300 million to repurchase common stock, reflecting strong liquidity and commitment to shareholder returns.
3. Portfolio Transactions
Howmet closed the $1.8 billion acquisition of Consolidated Aerospace Manufacturing on April 6 and sold a Savannah disk forging facility for $230 million on March 31. These moves reallocate capital to higher-growth segments and added approximately $275 million to 2026 revenue guidance.
4. Updated 2026 Guidance
Following portfolio adjustments, full-year 2026 guidance was raised to $9.65 billion in revenue (+$550 million), $3.06 billion in adjusted EBITDA (+$300 million), and adjusted EPS of $4.94 (+$0.49), with free cash flow projected at $1.75 billion (+$150 million).
