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FY2026 Q1
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Howmet Aerospace Inc. earnings call
Buzzberg read
Q1 revenue growth of 19% was strongest since 2023
Howmet Aerospace delivered a strong Q1 2026 with record revenue and margins, driven by a 20% surge in commercial aerospace and a 39% jump in gas turbines. Management raised full-year guidance and is aggressively investing in capacity, especially for the IGT market and next-gen engine spares. Q1 2026 revenue was $2.31B (+19% YoY), with EBITDA margin at record 32%, up 320 bps.
Buzzberg read Q1 revenue growth of 19% was strongest since 2023 Howmet Aerospace delivered a strong Q1 2026 with record revenue and margins, driven by a 20% surge in commercial aerospace and a 39% jump in gas turbines. Management raised full-year guidance and is aggressively investing in capacity, especially for the IGT market and next-gen engine spares. Q1 2026 revenue was $2.31B (+19% YoY), with EBITDA margin at record 32%, up 320 bps. Read full analysisCollapse analysis
Howmet Aerospace delivered a strong Q1 2026 with record revenue and margins, driven by a 20% surge in commercial aerospace and a 39% jump in gas turbines. Management raised full-year guidance and is aggressively investing in capacity, especially for the IGT market and next-gen engine spares. Q1 2026 revenue was $2.31B (+19% YoY), with EBITDA margin at record 32%, up 320 bps.
- Commercial aerospace engine spares grew 48%, pointing to a powerful aftermarket cycle.
- Industrial gas turbine revenue grew 39%, leading to formalized agreements with 6 of 7 major customers.
- Completed acquisition of CAM and divestiture of Savannah, streamlining portfolio towards higher-margin fasteners.
Revenue$2.313B+7% QoQ
EPS$1.22+16% QoQ
Gross margin36.92%Reported
Operating margin32.56%Reported
5 grounded callouts
What matters now
The highest-signal changes from the call.
Guidance
FY26 organic revenue growth guide raised to 14%
Demand
Gas turbine agreements finalized for six of seven customers
Show 2 more callouts
Supply
Rare earths inventory now covers 2026 and 90% of 2027
Mix
Spares revenue now 23% of total, up from 21%
Reported period
Actuals
| Metric | Reported | Change |
|---|---|---|
| Revenue | $2.313B | +7% QoQ |
| EPS | $1.22 | +16% QoQ |
| Gross margin | 36.92% | Reported |
| Operating margin | 32.56% | Reported |
| Free cash flow | $0.359B | -32% QoQ |
| Capex | $0.094B | Reported |
Forward-looking
Forward guidance
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $4.88–$5.00 | $4.94 | Raised |
| Free cash flow | FY2026 | $1.7B–$1.8B | $1.75B | Maintained |
| Revenue | FY2026 Q2 | $2.39B–$2.41B | $2.4B | Maintained |
| Revenue | FY2026 | $9.575B–$9.725B | $9.65B | Raised |
AI, capex & demand read
Management read
Confident
Management expressed strong confidence in growth and guidance, citing record margins, strong demand, and completed M&A, while acknowledging but downplaying macro uncertainties.
Investment and capacity
Management highlighted continued high capital expenditure to support organic growth, with CapEx at $94 million in Q1 and increased guidance to approximately $500 million for 2026, largely directed at engine products and gas turbine capacity expansions, including a new manufacturing plant in Japan expected to start production by Q4.
all 7 named companies below
Companiesreturns since call
Customers
Customers
John Plant
Howmet is ramping up production for the GTF Advantage engine, a key program for Pratt & Whitney, with volumes increasing significantly this year and into 2027.
Evidence
“In terms of the DTF first. In the first quarter, there was a fairly small amount of DTF production.”
Customers
John Plant
Howmet finalized supply and capex investment agreements with 6 out of 7 major industrial gas turbine customers, a step toward securing and locking in future capacity for the IGT build-out. — This de-risks Howmet's multi-year, multi-billion-dollar revenue growth plan in IGT, converting market enthusiasm into concrete, contracted commitments.
Evidence
“In terms of the Maverick, that production is just starting for the Leap 1B.”
Customers
John Plant
Engine spares revenue surged 48% in Q1, far outpacing aircraft build rates, indicating a significant aftermarket accelerant driven by MRO backlogs and durable legacy fleet demand. — The strong aftermarket growth signals pricing power and high-margin revenue for Howmet, underpinning its margin expansion guidance.
Evidence
“We have the rate for the 737 at an average of 42 per month of the year, and the 787 currently 7 per month, rising to 8 per month by the fourth quarter.”
Customers
John Plant
Engine spares revenue surged 48% in Q1, far outpacing aircraft build rates, indicating a significant aftermarket accelerant driven by MRO backlogs and durable legacy fleet demand. — The strong aftermarket growth signals pricing power and high-margin revenue for Howmet, underpinning its margin expansion guidance.
Evidence
“On the Airbus A320, 62 per month, and the Airbus A350 at 6 per month.”
Supply chain
Supply chain
John Plant
Howmet finalized supply and capex investment agreements with 6 out of 7 major industrial gas turbine customers, a step toward securing and locking in future capacity for the IGT build-out. — This de-risks Howmet's multi-year, multi-billion-dollar revenue growth plan in IGT, converting market enthusiasm into concrete, contracted commitments.
Evidence
“The negotiations regarding demand and capital investment have now been finalized for six out of seven customers, which is an increase from the four I commented on in the last earnings call.”
Supply chain
John Plant
Howmet has secured its rare earth supply through 2026, is 90% covered for 2027, and has extended some products' supply well into the end of the decade. — Proactive inventory building provides a significant competitive advantage and supply chain security versus peers, especially for defense applications during geopolitical uncertainty.
Evidence
“We actually have increased the inventory of Reras such that we're fully covered through 26. And I think we're like 90% of 2027 and some products now well through the end of the decade.”
External signals
Supply-chain alpha · 5returns since call
Engine spares revenue surged 48% in Q1, far outpacing aircraft build rates, indicating a significant aftermarket accelerant driven by MRO backlogs and durable legacy fleet demand.
Evidence
“Commercial aerospace engine spares were up 48% in the first quarter with both legacy and next-generation engine spares contributing.”
Howmet finalized supply and capex investment agreements with 6 out of 7 major industrial gas turbine customers, a step toward securing and locking in future capacity for the IGT build-out.
Howmet has secured its rare earth supply through 2026, is 90% covered for 2027, and has extended some products' supply well into the end of the decade.
The divestiture of the Savannah, Georgia disk forging facility was margin-accretive, as the operation had an isolated market position and no expansion plans.
The full-year 2026 guidance implies a revenue growth of 14% on a standalone basis, which is an increase from the 10% outlined in February, reflecting higher confidence in the fastening systems and engine products segments.
Methodology & coverage
Management-only analysis. All 7 validated company mentions are shown. Reported actuals and forward guidance are kept separate. Public evidence is limited to eight short attributed quotes. AI-generated analysis can be incomplete or wrong; verify important claims against the original source.