Howmet Aerospace Q3 revenue beats on commercial aerospace demand
Overview
U.S. aerospace solutions provider's Q3 revenue rose 29% yr/yr, beating analyst expectations
Adjusted EPS for Q3 rose 54% yr/yr
Company repurchased $500 mln in stock, board authorized $5 bln additional buyback
Outlook
Howmet raises full-year 2026 revenue guidance to $10.3 bln
Company expects 2027 revenue of about $11.5 bln, up ~12% from 2026 guidance
Company sees Q4 2026 revenue between $2.74 bln and $2.76 bln
Result Drivers
COMMERCIAL AEROSPACE DEMAND - Co said Q3 revenue growth was driven by 32% increase in commercial aerospace market, supported by aircraft order backlog and expected production volume increases
GAS TURBINES MARKET SHARE - Co reported 45% yr/yr gas turbines revenue growth, citing increased output and market share gains
DEFENSE AEROSPACE STRENGTH - Co said defense aerospace market remained solid, with further spares needs and likely increases in legacy fighter builds
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $2.70 bln | $2.59 bln (19 Analysts) |
Q3 Adjusted EPS | $1.46 | ||
Q3 EPS | $1.42 | ||
Q3 Net Income | $567 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the aerospace & defense peer group is "buy"
Wall Street's median 12-month price target for Howmet Aerospace Inc. is $317.34, about 62.6% above its October 28 closing price of $195.19
The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 49 three months ago
Reuters Recommended Reads
Oct 29 - L3Harris beats Q3 revenue estimates, raises FY guidance range
Oct 28 - Honeywell Aerospace lifts second-half cash flow view, tops quarterly estimates
Oct 27 - Boeing Q3 revenue beats estimates on defense volumes
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)