AI Takeaway
HWM delivered exceptional Q1 FY2026 results with revenue surging 19.1% YoY to $2.31B and net income jumping 68.6% to $580M, driven by strong operating leverage and a dramatic improvement in cash position.
Revenue
$2.31B
++19.10% YoY
EPS (Basic)
$1.45
++70.59% YoY
Operating Income
$753M
++52.43% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 19.1% year-over-year to $2.31B in Q1 FY2026 (from $1.94B in Q1 FY2025), reflecting robust demand for HWM's engineered components, likely driven by continued strength in aerospace and defense end markets.
Source: Source: 10-Q Income Statement
Operating income surged 52.4% YoY to $753M, with operating margin expanding approximately 710 basis points to 32.6% from 25.4%, demonstrating that revenue growth is translating efficiently into profitability with controlled cost increases.
Source: Source: 10-Q Income Statement & Key Ratios
Net income rose 68.6% YoY to $580M, and diluted EPS grew 71.4% to $1.44 from $0.84, indicating not only strong operational performance but also the positive impact of share repurchases and financial leverage on per-share earnings.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockLong-term debt increased 22.1% YoY to $4.05B, and the debt-to-equity ratio stands at 1.37x. The significant financing cash inflow of $1.23B in Q1 FY2026 suggests additional borrowing, which increases interest expense obligations and financial risk if operating performance softens.
Source: Source: 10-Q Balance Sheet & Cash Flow Statement
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.22 versus the $1.12 analyst consensus — a +9.1% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $2.31B | $1.94B | +19.10% |
Operating Income | $753M | $494M | +52.43% |
Net Income | $580M | $344M | +68.60% |
EPS (Basic) | $1.45 | $0.85 | +70.59% |
EPS (Diluted) | $1.44 | $0.84 | +71.43% |
R&D Expense | $9M | $8M | +12.50% |
SG&A Expense | $111M | $85M | +30.59% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $13.07B | $10.77B | +21.31% |
Current Assets | $5.66B | $3.55B | +59.17% |
Total Liabilities | $7.54B | $5.98B | +26.17% |
Current Liabilities | $2.31B | $1.55B | +49.55% |
Stockholders' Equity | $5.52B | $4.79B | +15.23% |
Cash & Equivalents | $2.44B | $536M | +354.29% |
Long-Term Debt | $4.05B | $3.32B | +22.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $453M | $253M | +79.05% |
Investing Cash Flow | $14M | $-115M | +112.17% |
Financing Cash Flow | $1.23B | $-167M | +834.13% |
Share Buybacks | $300M | $125M | +140.00% |
D&A | $74M | $69M | +7.25% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 32.6% | 25.4% | +7.12% |
Net Margin | 25.1% | — | — |
ROE | 10.5% | — | — |
ROA | 4.4% | — | — |
Current Ratio | $2.444 | — | — |
Debt to Equity | $1.366 | — | — |
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HWM delivered a strong Q1 FY2026, with revenue of $2.31B (up 19.1% YoY), net income of $580M (up 68.6% YoY), and diluted EPS of $1.44 (up 71.4% YoY). Operating margin expanded sharply to 32.6% from 25.4% in the prior year period, reflecting significant operating leverage.
HWM's revenue grew 19.1% YoY to $2.31B in Q1 FY2026, likely driven by strong demand in aerospace and defense end markets where the company supplies engineered components. The growth was broad-based enough to drive operating income up 52.4%, suggesting volume and/or pricing tailwinds.
HWM's financial health appears strong: the current ratio is 2.44x, cash and equivalents surged to $2.44B (up 354% YoY), and operating cash flow was $453M. The main watch item is long-term debt of $4.05B (debt-to-equity of 1.37x), which increased 22.1% YoY.
Yes, HWM repurchased $300M in shares during Q1 FY2026, a 140% increase from $125M in Q1 FY2025. This contributed to the 71.4% YoY growth in diluted EPS, which outpaced the 68.6% growth in net income.
Key risks include rising long-term debt (up 22.1% YoY to $4.05B), SG&A cost growth (up 30.6%) outpacing revenue growth (up 19.1%), and concentration in aerospace and defense end markets that are subject to cyclical demand swings. Simultaneously accelerating buybacks while increasing debt could also limit financial flexibility.