Howmet Aerospace (NYSE:HWM) issued a first-quarter outlook that topped Wall Street expectations, sending its shares more than 2% higher in premarket trading on Thursday, as the jet engine components supplier pointed to improving profitability and cash flow in 2026.
The upbeat forecast comes as production of popular single-aisle aircraft by Boeing and Airbus continues to accelerate, supported by resilient travel demand and substantial order backlogs. That momentum has filtered through to suppliers such as Howmet.
“[T]he vast majority of the markets we serve are in a growth phase, while the commercial transportation market shows signs of stabilizing. Commercial aerospace continues to benefit from rising passenger demand and recent multi-year under-build of aircraft that together have led to a record OEM backlog stretching into the next decade,” said CEO John Plant.
He added that demand for engine spare parts remains elevated, reflecting ongoing supply chain disruptions and delays in widebody aircraft production, while activity in the defense segment is “very healthy.”
The Pennsylvania-based group also noted that it took steps last year to mitigate the impact of broad U.S. import tariffs by passing higher input costs on to customers.
For the current quarter, Howmet expects adjusted earnings per share of $1.09 to $1.11, ahead of analyst estimates of $1.02. Revenue is projected at $2.23 billion to $2.25 billion, compared with consensus forecasts of $2.16 billion.
Looking at the full year, the company guided for adjusted EPS of $4.35 to $4.55 on revenue between $9.0 billion and $9.2 billion. Analysts had anticipated per-share earnings of $4.46 on sales of $9.15 billion.
In the fourth quarter, revenue climbed 15% year over year to $2.17 billion, while adjusted earnings reached $1.05 per share, both exceeding market expectations.