Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Howmet Aerospace's fiscal second quarter was defined by accelerating demand across commercial and defense aerospace and gas turbine end-markets, led by strong engine spare parts growth and contributions from the CAM and Brunner acquisitions. Management highlighted favorable product pricing and cost pass-through as tailwinds, while higher employment and acquisition-related costs caused SG&A to surge. The divestiture of a disk forging facility and lower commercial transportation volumes partially offset gains, but overall operating margin expanded. Robust operating cash flow funded both the acquisitions and increased share repurchases, though higher debt from deal financing lifted leverage.
Revenue
$2.55B
+24.06% YoY
EPS (Diluted)
$1.33
+33.00% YoY
Operating Income
$711M
+36.47% YoY
Source: SEC XBRL
Howmet Aerospace (HWM) reported Q2 FY2026 revenue of $2.55B, up 24.1% year over year. Operating margin was 27.9%, up 2.5 points from 25.4% a year earlier. HWM's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.33 | 1.26 | Beat +5.7% |
| Mar 2026 | 1.22 | 1.12 | Beat +9.1% |
| Dec 2025 | 1.05 | 0.98 | Beat +7.7% |
| Sep 2025 | 0.95 | 0.92 | Beat +3.8% |
Reported EPS of $1.33 versus the $1.26 analyst consensus — a +5.7% beat for Jun 2026.
4 reported segments · SEC XBRL
Segment revenue totals $2.55B, which is the $2.55B of consolidated revenue on the income statement.
Compiled by AI from 10-Q Item 2 of this filing
COGS as a percentage of sales improved to 62.7% from 66.5% a year ago, driven by volume leverage in aerospace and gas turbines, favorable product pricing, and mix, partially offset by higher cost pass-through.
Source: 10-Q Item 2 MD&A
SG&A expenses jumped 66% to $148M, primarily from higher employment costs, incremental headcount from acquisitions, and acquisition-related expenses.
Source: 10-Q Item 2 MD&A
The CAM and Brunner acquisitions added to revenue and segment performance, but also increased depreciation, amortization, and interest expense. The sale of the disk forging facility generated a $93M YTD restructuring gain.
Source: 10-Q Item 2 MD&A
Net interest expense increased 34% to $51M, reflecting new debt issuances totaling $1,200M in March 2026 and $500M in November 2025, partially offset by early debt redemptions.
Source: 10-Q Item 2 MD&A
Management expects continued aerospace and gas turbine growth, modest commercial transportation recovery in the second half, and elevated capex at ~5% of sales for capacity expansions, while maintaining investment-grade credit ratings.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 2 of this filing · 1 high, 4 medium, 0 low
A significant portion of Howmet's revenue comes from a limited number of large aerospace customers and their aircraft programs, exposing the company to demand fluctuations, program delays, or cancellations.
Source: 10-Q Item 2 MD&A
The Forged Wheels segment faces persistent soft volumes in commercial transportation, with only a modest recovery expected in the second half of 2026, amid volatile aluminum pricing and economic uncertainty.
Source: 10-Q Item 2 MD&A
Governmental tariffs and trade policies could disrupt supply chains, raise costs, and affect product demand; the company's ability to recover tariff-related costs remains uncertain.
Source: 10-Q Item 2 MD&A
The CAM and Brunner acquisitions were partially debt-funded, raising total debt and the debt-to-equity ratio to 1.31; while credit ratings remain investment-grade, higher interest costs and refinancing risk could pressure financial flexibility.
Source: 10-Q Item 2 MD&A
The integration of CAM and Brunner introduces operational complexities, including potential cost overruns, culture clashes, and realization of expected synergies, which could hinder performance.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 2.55 $B | 2.05 $B | +24.06% |
Operating Income $M | 711.00 $M | 521.00 $M | +36.47% |
Net Income $M | 534.00 $M | 407.00 $M | +31.20% |
EPS (Basic) $ | 1.33 $ | 1.01 $ | +31.68% |
EPS (Diluted) $ | 1.33 $ | 1.00 $ | +33.00% |
R&D Expense $M | 8.00 $M | 9.00 $M | -11.11% |
SG&A Expense $M | 148.00 $M | 89.00 $M | +66.29% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
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.
HWM delivered a strong FY2025 with revenue growing 11.1% to $8.25B, operating income surging 25.3% to $2.05B, and net income jumping 30.6% to $1.51B, reflecting significant margin expansion and robust cash generation.
Other companies in Aerospace & Defense