Howmet Aerospace (HWM) Q4 2025 Financial Results Summary

2026-02-13 · Stocks · QuoteReporter

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