FINWIRES · TerminalLIVE
FINWIRES

Research Alert: Howmet Aerospace Posts Q1 Beat And Raise, Accelerating Growth Trajectory

By

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

HWM reported Q1 revenue of $2,313M (+19% Y/Y), beating consensus by $72M, with adj. EPS of $1.22 (+42% Y/Y) exceeding estimates by $0.11. Adj. EBITDA margin expanded 320 bps Y/Y to 32.0%, reflecting broad-based demand strength across commercial aerospace, defense, and gas turbines. Engine Products drove outperformance with 29% revenue growth and 400 bps margin expansion to 36.6%, while gas turbines surged 39% Y/Y. Management raised 2026 guidance substantially, lifting revenue by $550M to $9,650M, EBITDA by $300M to $3,060M, and EPS by $0.49 to $4.94. The $1.8B CAM acquisition closed in April, adding aerospace fastening capabilities, while free cash flow of $359M (+168% Y/Y) supported $300M in buybacks. We believe the guidance increase reflects sustained aerospace momentum, with gas turbines projected to double from $1B to $2B over three to five years on data center demand, reinforcing our view that HWM benefits from record OEM backlogs and structural market tailwinds.

Related Articles

Mining & Metals

RBC Maintains Suncor Energy's Outperform Rating, C$100 Price Target

RBC Capital Markets on Wednesday reiterated Suncor Energy's (SU.TO) outperform rating and C$100 price target, with the bank noting the company delivered another quarter of "robust performance" punctuated by a "jumbo-sized" downstream pre-tax margin of $2 billion (including FIFO gains) in part driven by record refined product sales of 680,900 bbl/d.RBC's updated production outlook of 862,100 bbl/d, anchored by a $5.7 billion capital program, remains relatively unchanged."Suncor's first-quarter results reinforced our confidence that its culture of sustained high performance is taking deep root and enabling the company to be on the podium, come what may," RBC said. "We believe the ingredients are in place for the company to earn a premium relative valuation, conceivably over the next year," RBC added.Suncor is RBC's favorite integrated producer in Canada and is part of its Global Energy Best Ideas list.Suncor traded at $85.70 per share at last look Thursday on the Toronto Stock Exchange.Price: $85.70, Change: $-2.21, Percent Change: -2.51%

$SU.TO
Australia

RBC Capital Adjusts VSE Price Target to $240 From $220, Maintains Outperform Rating

VSE (VSEC) has an average rating of Buy and mean price target of $248.50, according to analysts polled by FactSet.Price: $206.85, Change: $-0.60, Percent Change: -0.29%

$VSEC
Australia

RBC Capital Adjusts United Therapeutics Price Target to $701 From $707, Maintains Outperform Rating

United Therapeutics (UTHR) has an average rating of buy and mean price target of $670.67, according to analysts polled by FactSet.Price: $585.63, Change: $-11.14, Percent Change: -1.87%

$UTHR
Research Alert: Howmet Aerospace Posts Q1 Beat And Raise, Accelerating Growth Trajectory | FINWIRES