Howmet Aerospace Inc. (HWM) Earnings History
Howmet Aerospace Inc. - Q4 2025 EarningsBeat
EXECUTIVE SUMMARY
Howmet Aerospace reported a strong finish to 2025 with record revenue and profit, driven by robust performance in its aerospace and defense segments. The company demonstrated significant operational leverage and margin expansion, supported by strategic acquisitions and capital deployment.
POSITIVE HIGHLIGHTS
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Fourth quarter 2025 revenue of $2.2 billion, up 15% year over year, driven by strong growth in Commercial Aerospace (+13%), Defense Aerospace (+20%), and Gas Turbines (+32%).
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Full year 2025 revenue of $8.3 billion, up 11% year over year, with strong contributions from Commercial Aerospace (+12%), Defense Aerospace (+21%), and Gas Turbines (+25%).
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Fourth quarter 2025 Adjusted EBITDA margin excluding special items increased approximately 330 basis points year over year to 30.1%.
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Full year 2025 Adjusted Operating Income Margin excluding special items was 25.8%, up approximately 380 basis points year over year.
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Full year 2025 Free Cash Flow was $1.43 billion, representing 93% conversion of Net Income excluding special items.
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CONCERNS & RISKS
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Fourth quarter 2025 Operating Income Margin was 22.6%, down approximately 90 basis points year over year.
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Forged Wheels segment revenue was down slightly year over year for full year 2025, with 13% lower volumes in the commercial transportation market.
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The company incurred $88 million in restructuring and other charges in Q4 2025, primarily due to a non-cash pension settlement charge.
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FINANCIAL METRICS
MARGIN ANALYSIS
Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
REVENUE BY SEGMENT — Q4 2025 2025
VISUAL OVERVIEW
DETAILED BREAKDOWN
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Engine Products | N/A | — | — | — |
Fastening Systems | N/A | — | — | — |
Engineered Structures | N/A | — | — | — |
Forged Wheels | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
MANAGEMENT GUIDANCE
FY 2026
Q1 2026
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
SPECIAL ITEMS & ADJUSTMENTS
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
MANAGEMENT COMMENTARY
The Howmet team delivered an exceptional quarter to cap a strong 2025. Revenue growth accelerated in the fourth quarter 2025 to 15% year over year, reflecting healthy growth in the commercial aerospace, defense aerospace, and gas turbines markets.
Adjusted EBITDA grew 29% year over year to $653 million and Adjusted EBITDA Margin increased approximately 330 basis points to 30.1%, both records. Adjusted Earnings per Share grew 42% to a record $1.05.
Healthy cash generation supported significant capital deployment in the fourth quarter with $200 million in share repurchases, $55 million for preferred share redemption, and $125 million for debt reduction.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
OPERATIONAL METRICS
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.