Howmet Aerospace: First Look at Q2 Earnings

研报英文原文证据摘录

J P M O R G A N

North America Equity Research

06 August 2026

Howmet Aerospace

First Look at Q2 Earnings

Overweight

HWM, HWM US

Price (05 Aug 26):$291.42

Aerospace & Defense

A standout quarter in Engine Products drove strong results at HWM in Q2, while

mgmt’s increase to sales, adj EBITDA, and adj EPS guidance for Q3 and 2026 are

ahead of consensus. As expected, new capacity in Engines is driving material Aero

growth and mgmt also highlighted that demand in the gas turbines market is

“extraordinary”. A higher capex outlook (FCF is up too, though) points to further

investments in these end markets, and HWM continues to demonstrate a superior

ability to generate returns on these investments. Please see our variance table

below.

Seth M. Seifman, CFA AC

Engine Products drove Q2 strength. Top-line beat us by 6%, driven by

Forged Wheels and Engine Products at +9% and +7% ahead, respectively;

Fasteners and Structures saw more modest upside at+3% each. Q2 adj

EBITDA margin of 32.1% was in line but featured Engine Products results that

were 100 bps higher than we expected at 37.7%, despite growing net headcount

by 485, the highest quarterly add since 1Q25. Within Engine Products, Comm’l

Aero sales were up 10% sequentially, thanks in part to new capacity. Gas

Turbines were up 13% sequentially despite concerns that Howmet was

bumping up against capacity constraints in this end market pending the

addition of new capacity later this year. The margin offset was primarily from

Forged Wheels, where pass-throughs diminish the importance of margin rate

as a key metric. We model this segment to adj EBITDA dollars and Q2 was in

line, with volumes starting to show sequential improvement following a period

of weak demand.

Jamie Simonson

Another big increase to guidance. HWM’s Q3 guidance for $2.575b of sales,

$830m of adj EBITDA, and $1.35 of EPS is ahead of consensus by 4%, 6%,

and 9c, respectively. For the full-year, the sales guidance is up $400m to

$10.05b, adj EBITDA is up $170m to $3.23b, and adj EPS is up 33c to $5.27.

Despite the big increase to guidance, after reporting a 1H adj EBITDA margin

of 32.0%, the implication is for minimal margin expansion in reaching mgmt’s

…