Key Points
Howmet Aerospace reported strong Q3 2026 financial results this morning.
Management raised 2026 guidance.
Howmet stock trades at 42.1 times trailing earnings.
Extending the 4.5% rise it enjoyed from the close of trading on Tuesday through the end of yesterday's trading session, Howmet Aerospace (NYSE:HWM) stock is climbing higher after the company announced third-quarter 2026 financial results that exceeded expectations. And with the aerospace parts manufacturer providing an auspicious outlook for the last quarter of 2026, investors have found even more reason to bid the stock higher.
As of 3:14 p.m. ET, Howmet shares are up 4.7%.
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Raising 2026 guidance has a funny way of making investors sit up and take notice
Growing revenue 29% year over year, Howmet reported sales of $2.7 billion -- better than the $2.58 billion that analysts had anticipated. Similarly, the company reported adjusted earnings per share (EPS) of $1.46, surpassing the consensus among analysts that it would report $1.37.
Besides the income statement, investors found cause for celebration in the company's cash flow statement. In Q3 2026, Howmet generated free cash flow of $562 million, a 32.9% of that which it reported during the same period last year.
Updating its 2026 outlook, management now projects revenue of $10.29 billion to $10.31 billion, up from its previous projection of about $10.05 billion. Plus, Howmet expects to generate stronger free cash flow in 2026 than initially thought: $1.95 billion to $2.05 billion, compared with the previous guidance of approximately $1.9 billion.
Howmet's core business centers on manufacturing engine components, fastening systems, and airframe structural components for aerospace, defense, and gas turbine applications.
Is now the time to take flight with Howmet stock?
While Howmet stock trades at 42.1 times trailing earnings, it's hard to say that shares are inexpensive, but this industrial stock commands a higher valuation considering the company's consistently strong performance. With Howmet shares down 28.2% over the past three months, investors may want to load up before they start to soar.
Scott Levine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Howmet Aerospace. The Motley Fool has a disclosure policy.