Howmet Aerospace Posts Record Profit, Raises 2025 Outlook
Howmet Aerospace Inc. (NYSE:HWM) announced its second-quarter 2025 financial results on Thursday. The company exceeded all guidance and strengthened its position in the aerospace and defense sectors.
The company reported record revenue and profit, driven by robust demand, prompting an upward revision of its full-year 2025 outlook.
Howmet Aerospace achieved record revenue of $2.05 billion, a 9% year-over-year increase, fueled by strong growth in commercial aerospace (up 8%), defense aerospace (up 21%), and industrial and other markets (up 17%), surpassing consensus estimates of $2.007 billion.
Also Read: Howmet Aerospace Stock Hits All-Time Highs, Analysts Eye Further Gains
Net Income reached $407 million, or $1.00 per share. Adjusted earnings per share rose 36% year over year to 91 cents, beating the consensus estimate of 87 cents.
Adjusted EBITDA (excluding special items) surged 22% to $589 million, with the margin expanding 300 basis points to 28.7%. Adjusted operating income margin expanded 330 bps to 25.3%.
The company generated a record $344 million in free cash flow, marking its ninth consecutive positive quarter. Operating cash flow totaled $446 million, with a quarter-end cash balance of $546 million.
In the second quarter, Engine Products led segment performance with a 13% year-over-year revenue increase to $1.1 billion, fueled by strength in aerospace, industrial gas turbines, and the oil and gas markets. The segment delivered a 20% rise in adjusted EBITDA, reaching $349 million, representing a healthy margin of 33.0%.
Fastening Systems followed with a 9% revenue increase to $431 million, supported by robust demand in both commercial and defense aerospace. Adjusted EBITDA for the segment climbed 25% to $126 million, translating to a margin of 29.2%.
Engineered Structures saw revenue grow 5% to $290 million, primarily driven by gains in defense aerospace. The segment’s adjusted EBITDA surged 55% to $62 million, reflecting a margin of 21.4%, the strongest year-over-year EBITDA growth among all divisions.
Meanwhile, Forged Wheels was the only segment to post a decline in revenue, which edged down 1% to $276 million due to softer commercial transportation volumes. However, this was partially offset by favorable aluminum cost pass-throughs. Despite the top-line pressure, the segment’s adjusted EBITDA rose 1% to $76 million, yielding a 27.5% margin.
Howmet Aerospace repurchased $175 million of common stock in the quarter and an additional $100 million in July 2025. Year-to-date, $400 million in stock has been repurchased, with $1.797 billion remaining under authorization.
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