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HWM · Q2 2026
Archived report (Q2 2026). Latest deep dive →
The quarter in brief
A very strong quarter — 24% revenue growth (21% organic) powered by Engine Products and gas turbines demand drove operating margin up 250bps to 27.9% and net income up 31% to $534M, with only Engineered Structures (divestiture-driven) as a modest drag.
Net Income
$534M
up 31% y/y
Revenue
$2,547M
up 24% y/y
Operating Income
$711M
up 37% y/y
Gross Profit
$951M
up 38% y/y
All figures in $M.
| Line item | Amount and change |
|---|---|
| Engine Products | $1,373 · +32% |
| Fastening Systems | $589 · +37% |
| Engineered Structures | $269 · -13% |
| Forged Wheels | $316 · +14% |
| Revenue | $2,547 · +24% |
| Cost of Goods Sold | $1,596 · +17% |
| Gross Profit | $951 · +38% · 37.3% margin |
| SG&A | $148 · +66% |
| R&D | $8 · -11% |
| D&A | $84 · +22% |
| Operating Income | $711 · +37% · 27.9% margin |
| Interest Expense, net | $51 · +34% |
| Other Expense, net | $11 · -21% |
| Pre-Tax Income | $649 · +38% |
| Income Tax | $115 · +85% |
| Net Income | $534 · +31% · EPS $1.33 diluted |
Verdict: a very strong quarter — 24% revenue growth (21% organic) powered by Engine Products and gas turbines demand drove operating margin up 250bps to 27.9% and net income up 31% to $534M, with only Engineered Structures (divestiture-driven) as a modest drag.
OCF $583M (+31%); FCF $479M after $104M capex; $300M buybacks in Q2 ($800M YTD through July, exceeding all of 2025); Q3 dividend raised 17% to $0.14/share; FY26 revenue guidance raised to $10.0-10.1B.
Source and notation
* marks non-cash / ≈ estimated. Source: Howmet Aerospace press release / 10-Q (SEC EDGAR).
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<figure> <a href="https://whoreportstoday.com/t/hwm/q2-2026"><img src="https://whoreportstoday.com/t/hwm/q2-2026/sankey.png" alt="HWM Q2 2026: where the revenue went" loading="lazy" style="max-width:100%;height:auto"></a> <figcaption>Source: <a href="https://whoreportstoday.com/t/hwm/q2-2026">Who Reports Today</a>, licensed under <a href="https://creativecommons.org/licenses/by/4.0/">CC BY 4.0</a></figcaption> </figure>
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<a href="https://whoreportstoday.com/t/hwm/q2-2026">HWM Q2 2026 earnings chart (Who Reports Today)</a>
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- Revenue growth was 24% reported but only 21% organic, with 3 points from the CAM (April 2026, ~$1.8B) and Brunner acquisitions net of the Savannah disk forging divestiture.
- GAAP and Adjusted EPS both landed at $1.33 this quarter, but Adjusted EPS excludes $22M of CAM/Brunner acquisition-related costs and a net tax benefit swing, unlike Q2 2025's larger GAAP/non-GAAP gap ($1.00 vs $0.91).
- Engineered Structures revenue fell 13% y/y on the Savannah facility divestiture and product rationalization, the only segment declining, though its margin still improved 170bps to 23.8% from exiting lower-margin business.
- Effective tax rate was unusually low at 17.7% due to one-off discrete benefits (release of valuation allowances on US foreign tax credits and state losses, Germany tax reserve release) partly offset by a new international withholding tax reserve.
- Interest expense rose to $51M from $38M y/y reflecting acquisition-related debt, but management reduced annualized interest expense by $12M via a Yen term loan payoff and cross-currency swap in May 2026.
- Engine Products (37.7% EBITDA margin, +470bps) and gas turbines end-market (+38% revenue) were the standout growth drivers, while Forged Wheels showed early signs of commercial transportation recovery (+7% sequential volumes).
What distorts the picture in this report and what to watch beyond the headlines.
HWM — Howmet Aerospace manufactures advanced engineered products, including aerospace components and fastening systems for commercial and defense applications.
The company is headquartered in Pittsburgh, Pennsylvania, and serves global aerospace industries.
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