Howmet Aerospace Inc
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.74%.
Did HWM Beat Earnings? Q1 2025 Results
Howmet Aerospace opened 2025 with a record-breaking first quarter, posting earnings per share of $0.86 against a consensus estimate of $0.78, a beat of 10.70%, while revenue of $1.94 billion matched analyst expectations and climbed 6.5% year over year. The standout driver behind the profit strength was a remarkable expansion in operating leverage, with Adjusted EBITDA margin reaching 28.8%, up 480 basis points year over year, as the Engine Products segment alone grew revenue 13% to $996 million and lifted its Adjusted EBITDA 31% on broad demand across commercial aerospace, defense, and industrial gas turbines. The quarter also earned Howmet a Fitch credit upgrade to BBB+, reflecting the company's steadily fortified balance sheet. Despite acknowledging a fluid tariff environment, management expressed confidence in its ability to pass related costs through to customers, and raised its full-year 2025 baseline Adjusted EPS guidance to $3.40 alongside a revenue midpoint of $8.03 billion, while guiding Q2 EPS to $0.86 on revenue of approximately $1.99 billion.
- Commercial aerospace market growth of 9% year over year
- Strong defense aerospace demand driving Engineered Structures growth
- Industrial gas turbine demand fueled by data center expansion
- Margin expansion from productivity gains across Fastening Systems and Engineered Structures
- Engine Products absorbed approximately 500 net headcount in support of expected revenue increases
- Incremental operating income margin of 106% and incremental EBITDA margin of 104%
“The Howmet team delivered a solid start to 2025, setting quarterly records in revenue, Adjusted EBITDA*, Adjusted EBITDA margin*, and Adjusted Earnings Per Share* while exceeding all aspects of our baseline guidance. Margin progression within the Fastening Systems and Engineered Structures segments was particularly noteworthy. Free cash flow was healthy at $134 million, up from $95 million in the prior year, and marked the eighth consecutive quarter of positive free cash flow generation.”
Howmet Aerospace CEO, on the earnings call
Forward Guidance & Outlook
Full year 2025 guidance includes current assumptions of tariff impacts. Revenue range widened to $7.880B–$8.180B (baseline $8.030B). Adjusted EBITDA guidance of $2.225B–$2.275B (baseline $2.250B) with margin of 28.2%–27.8% (baseline 28.0%). Adjusted EPS of $3.36–$3.44 (baseline $3.40). Free cash flow of $1.100B–$1.200B (baseline $1.150B). Q2 2025 guidance: Revenue $1.980B–$2.000B (baseline $1.990B), Adj. EBITDA $555M–$565M (baseline $560M), Adj. EPS $0.85–$0.87 (baseline $0.86). Commercial aerospace market remains poised for continued growth with record OEM backlogs. Defense aerospace and industrial markets expected to see healthy growth, with industrial gas turbine demand fueled by data center expansion. Commercial transportation outlook is less certain in the second half due to tariff-related and economic uncertainty in North America. The company expects to pass on tariff-related costs to customers.
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Figures from SEC filings and company reports. Not investment advice.