Howmet Aerospace reports fourth quarter and full year 2025 results
Howmet Aerospace (NYSE: HWM) today reported fourth quarter and full year 2025 results. The Company reported record fourth quarter 2025 revenue of USD 2.2 billion, up 15 per cent year over year, driven by growth in the commercial aerospace market of 13 per cent, growth in the defence aerospace market of 20 per cent, and growth in the gas turbines market of 32 per cent.
Howmet Aerospace reported Net Income of USD 372 million, or USD 0.92 per share, in the fourth quarter 2025 versus USD 314 million, or USD 0.77 per share, in the fourth quarter 2024. Fourth quarter 2025 Net Income included approximately USD 54 million in net charges from special items, primarily due to a non-cash settlement charge to annuitize the remainder of the Company's UK pension plan. Net Income excluding special items was USD 426 million in the fourth quarter 2025, up 41 per cent versus USD 303 million in the fourth quarter 2024. Adjusted EPS* in the fourth quarter 2025 were USD 1.05, up 42 per cent versus USD 0.74 in the fourth quarter 2024.
Fourth quarter 2025 Operating Income was USD 489 million, up 10 per cent year over year. Fourth quarter Adjusted Operating Income excluding special items was USD 580, up 34 per cent year over year. Operating Income Margin was 22.6 per cent, down approximately 90 basis points year over year. Fourth quarter 2025 Adjusted Operating Income Margin excluding special items was 26.8 per cent, up approximately 380 basis points year over year.
Fourth quarter 2025 Adjusted EBITDA excluding special items was USD 653 million, up 29 per cent year over year. The year-over-year increase was driven by strong growth in the commercial aerospace, defence aerospace, and gas turbines markets. Adjusted EBITDA margin excluding special items was up approximately 330 basis points year over year at 30.1 per cent.
The Company reported record full year 2025 revenue of USD 8.3 billion, up 11 per cent year over year, driven by growth in the commercial aerospace market of 12 per cent, growth in the defense aerospace market of 21 per cent, and growth in the gas turbines market of 25 per cent, partially offset by declines in the commercial transportation market of 5 per cent.
The Company reported Net Income of USD 1.5 billion, or USD 3.71 per share, in the full year 2025 versus USD 1.2 billion, or USD 2.81 per share, in the full year 2024, and included approximately USD 25 million in net charges from special items, primarily due to a non-cash settlement charge to annuitize the remainder of the Company's UK pension plan. Net Income excluding special items was USD 1.5 billion, or USD 3.77 per share, in the full year 2025, versus USD 1.1 billion, or USD 2.69 per share, in the full year 2024.
Full year 2025 Operating Income was USD 2.0 billion, up 25 per cent year over year. Full year 2025 Adjusted Operating Income excluding special items was USD 2.1 billion, up 30 per cent year over year. Operating Income Margin was up approximately 280 basis points year over year at 24.8 per cent in the full year 2025. Full year 2025 Adjusted Operating Income Margin excluding special items was 25.8 per cent, up approximately 380 basis points year over year.
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Full year 2025 Adjusted EBITDA excluding special items was USD 2.4 billion, up 26 per cent year over year. The year-over-year increase was driven by growth in the commercial aerospace, defence aerospace, and gas turbines markets, partially offset by declines in the commercial transportation market. Adjusted EBITDA Margin excluding special items was up approximately 350 basis points year over year at 29.3 per cent.
Howmet Aerospace Executive Chairman and Chief Executive Officer John Plant said, "The Howmet team delivered an exceptional quarter to cap a strong 2025. Revenue growth accelerated in the fourth quarter of 2025 to 15 per cent year over year, reflecting healthy growth in the commercial aerospace, defence aerospace, and gas turbines markets. Adjusted EBITDA* grew 29 per cent year over year to USD 653 million, and Adjusted EBITDA Margin* increased approximately 330 basis points to 30.1 per cent, both records. Adjusted Earnings per Share* grew 42 per cent to a record USD 1.05. Free Cash Flow for full year 2025 was USD 1.43 billion and 93 per cent conversion of Net Income* after record capital expenditures of USD 453 million as Howmet continued to invest for growth."
Mr Plant continued, "Healthy cash generation supported significant capital deployment in the fourth quarter with USD 200 million in share repurchases, USD 55 million for preferred share redemption, and USD 125 million for debt reduction. In the full year 2025, Howmet repurchased a record USD 700 million of common stock and paid approximately USD 181 million in dividends. Also in the quarter, Howmet entered into a definitive agreement to acquire CAM for approximately USD 1.8 billion, expected to close in the first half of 2026. The CAM and Brunner acquisitions will further strengthen Howmet's fastener portfolio. An additional USD 150 million of Howmet stock has been repurchased so far in 2026, reflecting continued confidence in Howmet's cash performance."
"Turning to 2026, the vast majority of the markets we serve are in a growth phase, while the commercial transportation market shows signs of stabilising. Commercial aerospace continues to benefit from rising passenger demand and recent multi-year underbuild of aircraft that together have led to a record OEM backlog stretching into the next decade. In addition to robust growth in new builds, engine spares needs continue to increase. Defence markets are also very healthy, while engine spares continue to grow to support the expanding aircraft fleet. The gas turbines business is entering its largest growth phase in years, with extremely high demand for electricity generation, especially from natural gas for data centres. In commercial transportation, we anticipate that the first quarter of 2026 will be the quarterly low point, and then we will begin to see healthy demand in the second half of 2026. Howmet is well-positioned for growth in 2026 and beyond."
Engine Products reported fourth quarter 2025 revenue of USD 1.2 billion, an increase of 20 per cent year over year, due to growth in the commercial aerospace, defence aerospace, and gas turbines markets, including engine spares growth. Segment Adjusted EBITDA was USD 396 million, up 31 per cent year over year, driven by growth in the commercial aerospace, defence aerospace, and gas turbines markets. The segment absorbed approximately 320 net headcount in the quarter in support of expected revenue increases. Segment Adjusted EBITDA Margin increased approximately 290 basis points year over year to 34.0 per cent.
Engine Products reported full-year 2025 revenue of USD 4.3 billion, an increase of 16 per cent year over year, due to growth in the commercial aerospace, defence aerospace, and gas turbines markets, including engine spares growth. Segment Adjusted EBITDA was USD 1.4 billion, up 25 per cent year over year, driven by growth in the commercial aerospace, defence aerospace, and gas turbines markets. The segment absorbed approximately 1,445 net headcount in the year in support of expected revenue increases. Segment Adjusted EBITDA Margin increased approximately 250 basis points year over year to 33.3 per cent.
Fastening Systems reported fourth quarter 2025 revenue of USD 454 million, an increase of 13 per cent year over year, due to growth in the commercial aerospace market, partially offset by lower volumes in the commercial transportation market. Segment Adjusted EBITDA was USD 139 million, up 25 per cent year over year, driven by growth in the commercial aerospace market as well as productivity gains, partially offset by lower volumes in the commercial transportation market. Segment Adjusted EBITDA Margin increased approximately 290 basis points year over year to 30.6 per cent.
Fastening Systems reported full year 2025 revenue of USD 1.7 billion, an increase of 11 per cent year over year, due to growth in the commercial aerospace market, partially offset by lower volumes in the commercial transportation market. Segment Adjusted EBITDA was USD 530 million, up 31 per cent year over year, driven by growth in the commercial aerospace market as well as productivity gains, partially offset by lower volumes in the commercial transportation market. Segment Adjusted EBITDA Margin increased approximately 460 basis points year over year to 30.4 per cent.
Engineered Structures reported fourth quarter 2025 revenue of USD 287 million, an increase of 4 per cent year over year due to growth in the defence aerospace market. Segment Adjusted EBITDA was USD 63 million, up 24 per cent year over year, driven by growth in the defence aerospace market. Segment Adjusted EBITDA Margin increased approximately 350 basis points year over year to 22.0 per cent.
Engineered Structures reported full-year 2025 revenue of USD 1.1 billion, an increase of 8 per cent year over year due to growth in the defence aerospace market. Segment Adjusted EBITDA was USD 243 million, up 46 per cent year over year, driven by growth in the defence aerospace market and productivity gains. Segment Adjusted EBITDA Margin increased approximately 560 basis points year over year to 21.2 per cent.
Forged Wheels reported fourth quarter 2025 revenue of USD 264 million, an increase of 9 per cent year over year, with 10 per cent lower volumes in the commercial transportation market more than offset by an increase in aluminium cost pass-through. Segment Adjusted EBITDA was USD 79 million, up 20 per cent year over year, driven by cost reductions in response to lower volumes in the commercial transportation market. Segment Adjusted EBITDA Margin increased approximately 270 basis points year over year to 29.9 per cent.
Forged Wheels reported full year 2025 revenue of USD 1.0 billion, down slightly year over year, with 13 per cent lower volumes in the commercial transportation market offset by an increase in aluminium cost pass through. Segment Adjusted EBITDA was USD 296 million, up 3 per cent year over year, driven by cost reductions in response to lower volumes in the commercial transportation market. Segment Adjusted EBITDA Margin increased approximately 130 basis points year over year to 28.5 per cent.
Howmet Aerospace to acquire consolidated Aerospace Manufacturing, LLC (CAM) for approximately USD 1.8 billion
On December 22, 2025, Howmet Aerospace announced that it entered into a definitive agreement to acquire CAM from Stanley Black & Decker, Inc. for an all-cash purchase price of approximately USD 1.8 billion. CAM is a leading global designer and manufacturer of precision fasteners, fluid fittings, and other complex, highly engineered products for demanding aerospace and defence applications. The transaction is expected to close in the first half of 2026, subject to customary closing conditions and regulatory approvals.
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Acquired fastener producer Brunner Manufacturing Co., Inc.
On February 6, 2026, the Company acquired Brunner Manufacturing Co. Inc., a small, privately-held producer of high-quality fastener products based in Mauston, WI in an all-cash transaction. The transaction will enhance Howmet's product offerings and market opportunities with larger-size fasteners.
Repurchased USD 200 million of common stock in the fourth quarter of 2025, USD 700 million in full-year 2025, and USD 150 million YTD in 2026
In the fourth quarter of 2025, Howmet Aerospace repurchased USD 200 million of common stock at an average price of USD 194.61 per share, retiring approximately 1.0 million shares.
In the full year 2025, the Company repurchased USD 700 million of common stock at an average price of USD 160.52 per share, retiring approximately 4.4 million shares.
Year to date in 2026, the Company repurchased an additional USD 150 million of common stock at an average price of USD 215.28 per share, retiring approximately 0.7 million shares.
As of February 12, 2026, total share repurchase authorisation available was approximately USD 1.347 billion.
Paid a quarterly common stock dividend of USD 0.12 per share in the fourth quarter of 2025
On November 25, 2025, the Company paid a quarterly dividend of USD 0.12 per share on its common stock to holders of record at the close of business on November 7, 2025. The quarterly dividend represents a 50 per cent increase from the fourth quarter 2024 dividend of USD 0.08 per share.
The Board of Directors declared a dividend of USD 0.12 per share on the Company's common stock, to be paid on February 25, 2026, to the holders of record at the close of business on February 6, 2026. This quarterly dividend represents a 20 per cent increase from the first quarter 2025 dividend of USD 0.10 per share.
Issued USD 500 million of 4.55 per cent notes due 2032; redeemed all outstanding principal amount of USD 625 million of 5.90 per cent Notes due 2027
On November 12, 2025, the Company issued USD 500 million aggregate principal amount of 4.55 per cent Notes due 2032 (the "2032 Notes"). On December 3, 2025, the Company redeemed all of the remaining outstanding principal amount of USD 625 million of its 5.90 per cent notes due 2027 (the "2027 Notes"). The Company used the net proceeds from the 2032 Notes offering and approximately USD 125 million in cash on hand to fund the redemption of the 2027 Notes. These actions result in annualised interest expense savings of approximately USD 14 million.
Debt actions during 2025 reduce annualised interest expense by approximately USD 22 million
The Company took several debt actions in the full year 2025, resulting in a debt reduction of approximately USD 265 million and approximately USD 22 million in annualised interest expense savings.
Redeemed all outstanding preferred stock in fourth quarter 2025 for approximately USD 55 million
On December 17, 2025, the Company redeemed all of the outstanding shares of USD 3.75 Cumulative Preferred Stock of the Company for approximately USD 55 million.
Annuitized remainder of the Company’s UK pension plan
On December 1, 2025, the Company reduced its gross pension obligation by approximately USD 125 million by annuitizing the remainder of the Company's UK pension plan. These actions resulted in a non-cash settlement charge of approximately USD 89 million.
Combined industrial gas turbine and oil & gas revenue disclosure into gas turbines
In the fourth quarter of 2025, the Company combined the revenue disclosure for the Industrial Gas Turbine and Oil & Gas markets into Gas Turbines. The Gas Turbines market constitutes turbine parts for use in heavy-duty gas turbine units as well as small- to mid-sized gas turbine units. Turbines across these size ranges serve the growing demand for electricity generation, driven by the accelerating data centre build-out. As a result of this change, the Company will no longer separately report the Industrial & Other market. The revenue previously classified as General Industrial is now classified as Other in our market disclosures.
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Note: This article has been issued by PRNewswire and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.
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