Howmet achieved significant operational leverage as 2026Q1 gross margins expanded to 36.9% from 26.1% in 2023Q4, driving a 71.4% year-over-year increase in EPS.
| Sales/Revenue | 8.62B | 8.25B | 7.43B | 6.64B | 5.66B | 4.97B | 5.26B | 7.1B | 14.02B | 12.96B | 12.39B | 12.39B | 12.54B |
| Revenue Growth % | 14.24% | 11.06% | 11.9% | 17.25% | 13.9% | -5.46% | -25.91% | -49.38% | 8.18% | 4.59% | 0.01% | -1.2% | - |
| Cost of Goods Sold | 5.82B | 5.71B | 5.38B | 5.03B | 4.31B | 3.84B | 4.12B | 5.48B | 11.97B | 10.77B | 10.3B | 10.62B | 10.35B |
| COGS % of Revenue | - | 69.26% | 72.38% | 75.69% | 76.09% | 77.19% | 78.27% | 77.25% | 85.36% | 83.1% | 83.1% | 85.7% | 82.51% |
| Gross Profit | 2.81B | 2.54B | 2.05B | 1.61B | 1.35B | 1.13B | 1.14B | 1.61B | 2.05B | 2.19B | 2.1B | 1.77B | 2.19B |
| Gross Margin % | 32.56% | 30.74% | 27.62% | 24.31% | 23.91% | 22.81% | 21.73% | 22.75% | 14.64% | 16.9% | 16.9% | 14.3% | 17.49% |
| Gross Profit Growth % | - | 23.64% | 27.14% | 19.2% | 19.4% | -0.79% | -29.23% | -21.33% | -6.3% | 4.58% | 18.23% | -19.2% | - |
| Operating Expenses | 434M | 407M | 380M | 369M | 320M | 268M | 294M | 428M | 707M | 824M | 881M | 910M | 1.33B |
| OpEx % of Revenue | - | 4.93% | 5.11% | 5.56% | 5.65% | 5.39% | 5.59% | 6.03% | 5.04% | 6.36% | 7.11% | 7.34% | 10.6% |
| Selling, General & Admin | 403M | 370M | 362M | 333M | 288M | 251M | 277M | 400M | 604M | 715M | 749M | 741M | 770M |
| SG&A % of Revenue | - | 4.48% | 4.87% | 5.02% | 5.09% | 5.05% | 5.27% | 5.64% | 4.31% | 5.52% | 6.04% | 5.98% | 6.14% |
| Research & Development | 38M | 37M | 33M | 36M | 32M | 17M | 17M | 28M | 103M | 109M | 132M | 169M | 123M |
| R&D % of Revenue | - | 0.45% | 0.44% | 0.54% | 0.57% | 0.34% | 0.32% | 0.39% | 0.73% | 0.84% | 1.07% | 1.36% | 0.98% |
| Other Operating Expenses | -1000K | 0 | -15M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -47M |
| Operating Income | 2.37B | 2.13B | 1.67B | 1.25B | 1.03B | 866M | 849M | 1.19B | 1.35B | 1.37B | 1.21B | 862M | 864M |
| Operating Margin % | 27.53% | 25.81% | 22.5% | 18.75% | 18.26% | 17.42% | 16.14% | 16.72% | 9.6% | 10.55% | 9.8% | 6.96% | 6.89% |
| Operating Income Growth % | - | 27.39% | 34.3% | 20.41% | 19.4% | 2% | -28.48% | -11.81% | -1.54% | 12.6% | 40.84% | -0.23% | - |
| EBITDA | 2.66B | 2.41B | 1.95B | 1.52B | 1.3B | 1.14B | 1.13B | 1.48B | 1.92B | 1.92B | 1.75B | 1.37B | 2.24B |
| EBITDA Margin % | 30.87% | 29.24% | 26.23% | 22.85% | 22.94% | 22.85% | 21.45% | 20.88% | 13.71% | 14.8% | 14.11% | 11.06% | 17.83% |
| EBITDA Growth % | 28.85% | 23.81% | 28.48% | 16.78% | 14.35% | 0.71% | -23.89% | -22.89% | 0.21% | 9.66% | 27.66% | -38.73% | - |
| D&A (Non-Cash Add-back) | 288M | 283M | 277M | 272M | 265M | 270M | 279M | 295M | 576M | 551M | 535M | 508M | 1.37B |
| EBIT | 2.37B | 2.13B | 1.56B | 1.19B | 835M | 583M | 552M | 548M | 1.24B | 966M | 922M | 657M | 555M |
| Net Interest Income | -139M | -131M | -162M | -195M | -223M | -257M | -376M | -314M | -353M | -477M | -492M | -458M | -423M |
| Interest Income | 16M | 20M | 20M | 23M | 6M | 2M | 5M | 24M | 23M | 19M | 16M | 16M | 19M |
| Interest Expense | 155M | 151M | 182M | 218M | 229M | 259M | 381M | 338M | 376M | 496M | 508M | 474M | 442M |
| Other Income/Expense | -272M | -290M | -289M | -270M | -428M | -542M | -678M | -977M | -478M | -897M | -800M | -679M | -751M |
| Pretax Income | 2.1B | 1.84B | 1.38B | 975M | 606M | 324M | 171M | 210M | 868M | 470M | 414M | 183M | 113M |
| Pretax Margin % | 24.38% | 22.3% | 18.61% | 14.68% | 10.7% | 6.52% | 3.25% | 2.96% | 6.19% | 3.63% | 3.34% | 1.48% | 0.9% |
| Income Tax | 358M | 332M | 228M | 210M | 137M | 66M | -40M | 84M | 226M | 544M | 1.48B | 339M | 174M |
| Effective Tax Rate % | 17.03% | 18.04% | 16.49% | 21.54% | 22.61% | 20.37% | -23.39% | 40% | 26.04% | 115.74% | 356.52% | 185.25% | 153.98% |
| Net Income | 1.74B | 1.51B | 1.16B | 765M | 469M | 258M | 211M | 470M | 642M | -74M | -941M | -322M | 268M |
| Net Margin % | 20.23% | 18.27% | 15.55% | 11.52% | 8.28% | 5.19% | 4.01% | 6.62% | 4.58% | -0.57% | -7.59% | -2.6% | 2.14% |
| Net Income Growth % | 38.85% | 30.56% | 50.98% | 63.11% | 81.78% | 22.27% | -55.11% | -26.79% | 967.57% | 92.14% | -192.24% | -220.15% | - |
| Net Income (Continuing) | 1.74B | 1.51B | 1.16B | 765M | 469M | 258M | 211M | 126M | 642M | -74M | -1.06B | -156M | -61M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 344M | 0 | 0 | 121M | -165M | 329M |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14M | 12M | 14M | 26M | 2.08B | 0 |
| EPS (Diluted) | 4.33 | 3.71 | 2.81 | 1.83 | 1.11 | 0.59 | 0.48 | 1.02 | 1.28 | -0.16 | -2.13 | -0.73 | 0.56 |
| EPS Growth % | 40.39% | 32.03% | 53.55% | 64.86% | 88.14% | 22.92% | -52.94% | -20.31% | 900% | 92.49% | -191.78% | -230.36% | - |
| EPS (Basic) | - | 3.73 | 2.83 | 1.85 | 1.12 | 0.60 | 0.48 | 1.08 | 1.35 | -0.15 | -2.55 | -0.73 | 0.56 |
| Diluted Shares Outstanding | 403M | 406M | 410M | 416M | 421M | 435M | 439M | 463M | 503M | 451M | 438M | 438.52M | 438.52M |
| Basic Shares Outstanding | 401M | 404M | 408M | 412.17M | 416.04M | 429.83M | 435.13M | 434.4M | 477.12M | 481.67M | 364.42M | 438.52M | 438.52M |
| Dividend Payout Ratio | - | 12% | 9.26% | 9.28% | 8.96% | 6.59% | 5.21% | 12.13% | 18.54% | - | - | - | 60.07% |
OEM production bottleneck exposure
According to the latest quarterly financial data, Howmet Aerospace achieved a 19.1% year-over-year revenue increase in 2026Q1, signaling an acceleration from the 14.6% growth observed in the prior quarter and reflecting sustained demand across its core aerospace engine and structural component segments as production rates recover.
The consistent upward trend in top-line performance suggests that the company is successfully capturing volume growth from narrow-body engine programs. Investors should monitor whether this trajectory remains durable as the company faces potential constraints from OEM assembly line delays.
As reported in recent income statements, Howmet's gross margin expanded to 36.9% in 2026Q1, a significant improvement from the 26.1% level seen in 2023Q4, which indicates that the company is effectively leveraging its high-fixed-cost foundry base to drive superior profitability as capacity utilization rates climb.
This margin expansion appears to be driven by a favorable product mix shift toward high-value aftermarket spares and improved operational efficiency. The ability to sustain these levels warrants further investigation into whether pricing power can offset potential inflationary pressures in raw material inputs like nickel and titanium.
Based on the provided financial figures, operating income scaled to $734 million in 2026Q1, demonstrating that operating margins have widened to 31.7% compared to 20.7% in 2023Q4, confirming that the company is successfully managing its overhead costs while scaling production to meet rising aerospace demand.
The disproportionate growth in operating income relative to revenue suggests a high degree of operating leverage inherent in the company's specialized manufacturing model. This trend implies that incremental revenue gains are flowing efficiently to the bottom line, provided that SG&A expenses remain disciplined.
Analysis of the income statement reveals that net income reached $580 million in 2026Q1, with EPS growth of 71.4% year-over-year, suggesting that the quality of earnings is supported by strong operational performance rather than reliance on non-operating items or significant fluctuations in stock-based compensation expenses.
While stock-based compensation remains a recurring line item, its impact appears manageable relative to the substantial growth in net income. Investors should continue to scrutinize the tax rate and non-operating charges to ensure that the reported EPS accurately reflects the underlying cash-generating capability of the business.
Quick answers to the most common questions about buying HWM stock.
For fiscal year 2025, Howmet Aerospace Inc. (HWM) reported total revenue of $8.25B. This represents a 34.2% decline compared to $12.54B in 2014.
Howmet Aerospace Inc. (HWM) is profitable, generating $1.51B in net income for the fiscal year ending 2025 with a net profit margin of 18.3%.
Howmet Aerospace Inc. (HWM) reported an operating income of $2.13B, resulting in an operating profit margin of 25.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Howmet Aerospace Inc. (HWM) generated $2.54B in gross profit for the year, representing a gross profit margin of 30.7%. This demonstrates the company's core pricing power and production efficiency.