# Howmet Aerospace (HWM) Q2 2025 Financial Results Summary
PITTSBURGH, PA, July 31, 2025 – Howmet Aerospace (NYSE: HWM) reported its second quarter 2025 financial results, highlighting significant growth across key metrics compared to the same quarter a year ago.
## Key Financial Metrics
– **Revenue**:
– Total revenue of **$2.05 billion**, representing a **9% increase** compared to $1.88 billion in Q2 2024.
– Growth driven primarily by **Commercial Aerospace**, which rose by **8%**.
– **Operating Income**:
– Operating income was **$521 million**, an increase of **31%** from **$398 million** in Q2 2024.
– Operating Income Margin reached **25.4%**, up **420 basis points** year over year.
– **Net Income**:
– Net income reached **$407 million**, or **$1.00** per share, compared to **$266 million**, or **$0.65** per share in Q2 2024.
– Excluding special items, net income was **$371 million**, or **$0.91** per share, up from **$276 million**, or **$0.67** per share from the previous year.
– **Adjusted Financial Results**:
– Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was **$589 million**, reflecting a **22% increase** year over year.
– Adjusted EBITDA margin stood at **28.7%**, up **300 basis points** from the prior year.
– **Free Cash Flow**:
– Generated $344 million of free cash flow during the quarter.
– **Cash Utilization**:
– **$339 million** used for financing activities.
– **$97 million** spent on investing activities.
## Share Repurchase and Dividend
– **Share Repurchase**:
– The company spent **$175 million** on common stock repurchases during the quarter at an average price of **$142.36** per share.
– An additional **$100 million** of common stock was repurchased in July 2025 at an average price of **$182.90** per share. Year-to-date total repurchases amount to **$400 million**.
– **Dividend**:
– The Board declared a dividend of **$0.12** per share, representing a **20% increase** from the previous dividend of **$0.10** per share.
## Debt Management
– Paid down **$76 million** of its US dollar-denominated Term Loan in Q2 2025, reducing annualized interest expenses by approximately **$4 million**.
## 2025 Guidance Update
– Full-year 2025 guidance has been raised on all metrics due to the Q2 performance.
### Q3 2025 Guidance:
– **Revenue**:
– Estimated between **$2.020 billion** and **$2.040 billion**.
– **Adjusted EBITDA**:
– Forecasted between **$575 million** and **$585 million**.
– **Adjusted Earnings per Share**:
– Targeted between **$0.89** and **$0.91**.
– **Free Cash Flow**:
– Projected between **$1.175 billion** and **$1.275 billion**.
## Segment Performance Highlights
– **Engine Products**:
– Revenue of **$1.1 billion**, a **13% increase** year over year.
– Adjusted EBITDA increased by **20%** to reach **$349 million**, with a margin of **33.0%**.
– **Fastening Systems**:
– Revenue increased by **9%** to **$431 million**. Adjusted EBITDA rose by **25%** to **$126 million**, with an Adjusted EBITDA margin of **29.2%**.
– **Engineered Structures**:
– Revenue of **$290 million**, a **5% increase** year over year. Adjusted EBITDA increased by **55%** to **$62 million**.
– **Forged Wheels**:
– Reported revenue of **$276 million**, with a slight decline of **1%**. Adjusted EBITDA increased by **1%** to **$76 million**.
## Conclusion
Howmet Aerospace’s Q2 2025 results reveal robust growth in revenue, operating income, and adjusted metrics, underscoring the strength of its commercial aerospace market and effective cost management strategies. The company’s proactive approach in returning cash to shareholders through stock repurchases and increased dividends reflects confidence in its ongoing financial health and operational performance as it adjusts its full-year guidance for 2025.
| Quarter ended | |||
|---|---|---|---|
| June 30, 2025 | March 31, 2025 | June 30, 2024 | |
| Sales | $2,053 | $1,942 | $1,880 |
| Cost of goods sold (exclusive of expenses below) | $1,365 | $1,290 | $1,287 |
| Selling, general administrative, and other expenses | $89 | $85 | $97 |
| Research and development expenses | $9 | $8 | $7 |
| Provision for depreciation and amortization | $69 | $69 | $69 |
| Restructuring and other (credits) charges | $— | $ (4) | $22 |
| Operating income | $521 | $494 | $398 |
| Interest expense, net | $38 | $39 | $49 |
| Other expense, net | $14 | $9 | $15 |
| Income before income taxes | $469 | $446 | $334 |
| Provision for income taxes | $62 | $102 | $68 |
| Net income | $407 | $344 | $266 |
| Amounts Attributable to Howmet Aerospace Common Shareholders: | |||
| Earnings per share – basic(1): | |||
| Net income per share | $1.01 | $0.85 | $0.65 |
| Average number of shares(2)(3) | 404 | 405 | 408 |
| Earnings per share – diluted(1): | |||
| Net income per share | $1.00 | $0.84 | $0.65 |
| Average number of shares(2)(3) | 406 | 407 | 411 |
| Common stock outstanding at the end of the period | 404 | 404 | 408 |
| June 30, 2025 | December 31, 2024 | |
|---|---|---|
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $545 | $564 |
| Receivables from customers, less allowances | $888 | $689 |
| Other receivables | $14 | $20 |
| Inventories | $1,964 | $1,840 |
| Prepaid expenses and other current assets | $283 | $249 |
| Total current assets | $3,694 | $3,362 |
| Properties, plants, and equipment, net | $2,526 | $2,386 |
| Goodwill | $4,065 | $4,010 |
| Deferred income taxes | $31 | $35 |
| Intangibles, net | $467 | $475 |
| Other noncurrent assets | $263 | $251 |
| Total assets | $11,046 | $10,519 |
| Liabilities | ||
| Current liabilities: | ||
| Accounts payable, trade | $1,028 | $948 |
| Accrued compensation and retirement costs | $263 | $305 |
| Taxes, including income taxes | $64 | $60 |
| Accrued interest payable | $59 | $59 |
| Other current liabilities | $181 | $171 |
| Long-term debt due within one year | $5 | $6 |
| Total current liabilities | $1,600 | $1,549 |
| Long-term debt | $3,253 | $3,309 |
| Accrued pension benefits | $613 | $625 |
| Accrued other postretirement benefits | $52 | $54 |
| Other noncurrent liabilities and deferred credits | $486 | $428 |
| Total liabilities | $6,004 | $5,965 |
| Equity | ||
| Howmet Aerospace shareholders’ equity: | ||
| Preferred stock | $55 | $55 |
| Common stock | $404 | $405 |
| Additional capital | $2,898 | $3,206 |
| Retained earnings | $3,434 | $2,766 |
| Accumulated other comprehensive loss | $ (1,749) | $ (1,878) |
| Total equity | $5,042 | $4,554 |
| Total liabilities and equity | $11,046 | $10,519 |
