Howmet Aerospace stock dips on guidance for slower revenue growth

[View inside the aviation hangar, the airplane mechanic working around the service.]
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Howmet Aerospace (HWM [https://seekingalpha.com/symbol/HWM]) shares fell 1.7% in premarket trading Thursday after the aerospace components manufacturer provided guidance [https://seekingalpha.com/news/4511188-howmet-aerospace-non-gaap-eps-of-0_95-beats-by-0_04-revenue-of-2_09b-beats-by-50m] for slower revenue growth.

The company’s 2026 revenue outlook of roughly $9 billion, up about 10% year over year, marks a slowdown from its current 14% growth rate. The guidance is in line with the consensus estimate.

Howmet (HWM [https://seekingalpha.com/symbol/HWM]) projected fourth-quarter adjusted earnings of $0.94 to $0.96 a share, compared with Wall Street’s estimate of $0.94, and reaffirmed a 2025 adjusted ebitda margin of 29%.

During the third quarter, the company posted net income of $385 million, or $0.95 a share, up from $332 million, or $0.81 a share, in the same period a year earlier. That beat Wall Street’s earnings estimate of $0.91 a share.

Adjusted earnings also came in at $0.95 per share, beating the consensus forecast of $0.91 a share.

Revenue rose 14% to $2.09 billion, topping analyst estimates of $2.04 billion, driven by growth across commercial and defense aerospace, and industrial markets.

Earnings before interest, taxes, depreciation and amortization rose 26% year over year to $614 million, with margins expanding 290 basis points to 29.4%, reflecting strong performance in the company’s Engine Products and Fastening Systems segments.

Chief Executive Officer John Plant in a statement called it “a very strong quarter” that exceeded the high end of guidance across all metrics, highlighting free cash flow of $423 million and a 20% dividend increase.

Still, despite the earnings beat, investors appeared cautious after

Howmet’s commercial transportation business, which declined 3% year over year, continued to lag its other segments, signaling persistent softness in that market even as aerospace demand remains robust.

The company repurchased $200 million of stock during the quarter and another $100 million in October, bringing total 2025 buybacks to $600 million. It also paid down $63 million in debt and received a credit-rating upgrade to BBB+ from S&P Global.

Plant reaffirmed confidence in the company’s transformation, noting that “air traffic continues to grow and the backlog of commercial aircraft extends through the decade,” but he acknowledged “ongoing weakness in commercial transportation” that could weigh on near-term performance.

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