Howmet Aerospace Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.25%.
Did HWM Beat Earnings? Q3 2025 Results
Howmet Aerospace posted a strong third quarter, reporting adjusted EPS of $0.95 against a consensus estimate of $0.91, a beat of 4.48%, while revenue of $2.09 billion topped the $2.04 billion consensus by 2.15% and grew 13.8% year over year, accelerating sharply from the 8% pace seen in the first half of 2025. The primary engine behind the outperformance was the Engine Products segment, which generated $1.10 billion in third-party revenue, up 17% year over year, fueled by commercial aerospace, defense, and industrial gas turbine demand. Operating income margin expanded 300 basis points to 25.9%, while adjusted EBITDA climbed 26% to $614 million, and free cash flow reached a robust $423 million. The company raised full-year 2025 guidance across all metrics, targeting an adjusted EPS baseline of $3.67 and revenue of approximately $8.19 billion, and introduced 2026 revenue guidance of roughly $9 billion, representing approximately 10% growth, supported by commercial aircraft backlogs, defense demand, and data center-driven industrial gas turbine growth.
- Commercial aerospace market growth of 15% year over year
- Defense aerospace market growth of 24% year over year
- Industrial and other market growth of 18% year over year
- Engine spares growth in Engine Products segment
- Productivity gains in Fastening Systems driving 480 basis point EBITDA margin expansion
- Cost reductions in Forged Wheels offsetting 16% lower commercial transportation volumes
- Operating income margin expansion of 300 basis points year over year to 25.9%
“The Howmet team drove a very strong third quarter, with results exceeding the high end of guidance on all metrics. Notably, revenue growth accelerated to 14% year over year, versus 8% growth in the first half, driven by healthy demand across the commercial aerospace, defense aerospace, and industrial and other markets. Adjusted EBITDA Margin was solid at 29.4%, up 290 basis points year over year. Free Cash Flow was $423 million after $108 million of capital expenditures, as Howmet continues to invest in growth, which is backed by customer contracts.”
Howmet Aerospace CEO, on the earnings call
Forward Guidance & Outlook
Howmet raised full-year 2025 guidance on all metrics. FY 2025 revenue guidance: baseline ~$8.185B (range ~$8.175B to ~$8.195B). FY 2025 Adjusted EBITDA: baseline ~$2.375B (range ~$2.370B to ~$2.380B). FY 2025 Adjusted EBITDA Margin: 29.0%. FY 2025 Adjusted EPS: baseline $3.67 (range $3.66 to $3.68). FY 2025 Free Cash Flow: baseline $1.300B (range $1.275B to $1.325B). Q4 2025 guidance: revenue baseline $2.100B, Adj. EBITDA baseline $610M, Adj. EPS baseline $0.95. For FY 2026, the company introduced revenue guidance of approximately $9 billion, up ~10% year over year, supported by strong commercial aircraft backlogs, growing defense demand, and data center-driven industrial gas turbine growth, partially offset by continued weakness in commercial transportation.
HWM YoY Financials
HWM Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.