Howmet Aerospace (HWM) Q4 2025 Financial Results Summary
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Howmet Aerospace (HWM) Q4 2025 Financial Results Summary
PITTSBURGH, PA, February 12, 2026 – Howmet Aerospace (NYSE: HWM) has reported its fourth quarter and full year 2025 results, highlighting record revenues and profits. This performance reflects the company’s substantial growth in the aerospace and turbine sectors.
Key Financial Highlights
Fourth Quarter 2025 Results
- Total Revenue: $2.2 billion, an increase of 15% YoY, driven by:
- Commercial Aerospace: up 13%
- Defense Aerospace: up 20%
- Gas Turbines: up 32%
- Operating Income Margin: 22.6%, a decrease of 90 basis points YoY
- Net Income: $372 million, up from $314 million in Q4 2024
- Earnings per Share (EPS): $0.92, an increase of 19% YoY
- Cash from Operations: $654 million
- Cash Used in Financing Activities: $449 million
- Cash Used in Investing Activities: $122 million
- Share Repurchases: $200 million
- Quarterly Dividend: Paid a dividend of $0.12 per share, up 50% YoY
Adjusted Financial Metrics
- Adjusted EBITDA (excluding special items): $653 million, an increase of 29% YoY
- Adjusted EBITDA Margin (excluding special items): 30.1%, an increase of 330 basis points YoY
- Adjusted Operating Income Margin (excluding special items): 26.8%, an increase of 380 basis points YoY
- Adjusted EPS (excluding special items): $1.05, an increase of 42% YoY
- Free Cash Flow: $530 million
Full Year 2025 Financial Results
- Total Revenue: $8.3 billion, up 11% YoY, driven by:
- Commercial Aerospace: up 12%
- Defense Aerospace: up 21%
- Gas Turbines: up 25%
- Commercial Transportation: down 5%
- Operating Income Margin: 24.8%, an increase of 280 basis points YoY
- Net Income: $1.5 billion, compared to $1.2 billion in 2024
- EPS: $3.71, compared to $2.81 in 2024
- Cash from Operations: $1.9 billion
- Cash Used in Financing Activities: $1.3 billion
- Cash Used in Investing Activities: $0.4 billion
- Total Share Repurchases: $700 million
- Dividends Paid: $0.44 per share
Full Year 2025 Adjusted Financial Metrics
- Adjusted EBITDA (excluding special items): $2.4 billion, up 26% YoY
- Adjusted EBITDA Margin (excluding special items): 29.3%, an increase of 350 basis points YoY
- Adjusted Operating Income Margin (excluding special items): 25.8%, an increase of 380 basis points YoY
- Adjusted EPS (excluding special items): $3.77, an increase of 40% YoY
- Free Cash Flow: $1.4 billion
Corporate Actions and Guidance
- Share Repurchases:
- In Q4 2025, Howmet repurchased $200 million of common stock, bringing the total to $700 million for FY 2025. An additional $150 million has been repurchased in 2026 so far.
- Dividends: A quarterly dividend of $0.12 per share was also declared for Q1 2026, representing a 20% increase from the previous quarter.
- Acquisitions:
- On December 22, 2025, the company announced a definitive agreement to acquire Consolidated Aerospace Manufacturing for $1.8 billion.
- Acquired Brunner Manufacturing Co. Inc. on February 6, 2026, enhancing Howmet’s portfolio in fastener products.
- Debt Management:
- $265 million in debt reduction achieved, and actions taken to save approximately $22 million in annualized interest expenses.
- 2026 Guidance:
- Revenue growth for FY 2026 is projected to be around 10% with expectations for improved profit and cash generation.
Overall, Howmet Aerospace has shown robust progress in its financial performance, with substantial increases in revenue and earnings per share contributing to a strong outlook for the future.
Condensed Consolidated Statements of Income
(in U.S. dollar millions)
| Quarter ended | |||
|---|---|---|---|
| December 31, 2025 | September 30, 2025 | December 31, 2024 | |
| Sales | $2,168 | $2,089 | $1,891 |
| Cost of goods sold (exclusive of expenses below) | $1,412 | $1,365 | $1,289 |
| Selling, general administrative, and other expenses | $96 | $100 | $77 |
| Research and development expenses | $10 | $10 | $7 |
| Provision for depreciation and amortization | $73 | $72 | $73 |
| Restructuring and other charges | $88 | $— | $— |
| Operating income | $489 | $542 | $445 |
| Loss on debt redemption | $15 | $— | $— |
| Interest expense, net | $37 | $37 | $40 |
| Other expense, net | $7 | $10 | $13 |
| Income before income taxes | $430 | $495 | $392 |
| Provision for income taxes | $58 | $110 | $78 |
| Net income | $372 | $385 | $314 |
| Amounts Attributable to Howmet Aerospace Common Shareholders: | |||
| Earnings per share – basic(1): | $0.92 | $0.96 | $0.77 |
| Average number of shares(2)(3) | 402 | 403 | 406 |
| Earnings per share – diluted(1): | $0.92 | $0.95 | $0.77 |
| Average number of shares(2)(3) | 404 | 405 | 408 |
| Common stock outstanding at the end of the period | 402 | 403 | 405 |
Condensed Consolidated Balance Sheets
(in U.S. dollar millions)
| December 31, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $742 | $564 |
| Receivables from customers, less allowances of $— in both 2025 and 2024 | $779 | $689 |
| Other receivables | $17 | $20 |
| Inventories | $1,849 | $1,840 |
| Prepaid expenses and other current assets | $392 | $249 |
| Total current assets | $3,779 | $3,362 |
| Properties, plants, and equipment, net | $2,593 | $2,386 |
| Goodwill | $4,022 | $4,010 |
| Deferred income taxes | $40 | $35 |
| Intangibles, net | $457 | $475 |
| Other noncurrent assets | $288 | $251 |
| Total assets | $11,179 | $10,519 |
| Liabilities | ||
| Current liabilities: | ||
| Accounts payable, trade | $845 | $948 |
| Accrued compensation and retirement costs | $343 | $305 |
| Taxes, including income taxes | $77 | $60 |
| Accrued interest payable | $47 | $59 |
| Deferred revenue | $147 | $60 |
| Other current liabilities | $121 | $111 |
| Long-term debt due within one year | $191 | $6 |
| Total current liabilities | $1,771 | $1,549 |
| Long-term debt, less amount due within one year | $2,859 | $3,309 |
| Accrued pension benefits | $546 | $625 |
| Accrued other postretirement benefits | $38 | $54 |
| Other noncurrent liabilities and deferred credits | $612 | $428 |
| Total liabilities | $5,826 | $5,965 |
| Equity | ||
| Howmet Aerospace shareholders’ equity: | ||
| Preferred stock | $— | $55 |
| Common stock | $402 | $405 |
| Additional capital | $2,531 | $3,206 |
| Retained earnings | $4,093 | $2,766 |
| Accumulated other comprehensive loss | $(1,673) | $(1,878) |
| Total equity | $5,353 | $4,554 |
| Total liabilities and equity | $11,179 | $10,519 |